Paying cash for all the shares outstanding

Assignment Help Finance Basics
Reference no: EM131736201

Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 per share. Assuming that neither firm has any debt before or after the merger, create the postmerger balance sheet for Firm X assuming the use of purchase accounting.

1979_postmerger balance sheet.PNG

Reference no: EM131736201

Questions Cloud

How much do you need to invest at the end : How much do you need to invest at the end of each year to have $895,000 at the end of 18 years if you can earn 8.6% annually?
Mead meals on wheels : The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. The city of Wabash pays MMWC $32 per week for each person it serves.
What is the combined effect of these two transactions : What is the combined effect of these two transactions on the current ratio and total stockholders' equity, respectively
What amount of premium or discount is associated with bonds : A total of $210,500 in cash was received, which included accrued interest. What amount of premium or discount is associated with these bonds
Paying cash for all the shares outstanding : Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 per share.
Constraint for the hr hiring system project implementation : Give a reason why schedule and time are the most important constraint for the HR hiring system project implementation?
Draw a time line to show the cash flows of the project : Draw a time line to show the cash flows of the project. Discuss whether the project should be taken.
Do you think this will lead to growth-development-progress : Do you think this will lead to growth, development, progress, or a combination of all three?
What is the proper calculation of damages : Discuss remedies for breach of contract. What is the proper calculation of damages?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd