Prepare the entry that reflects the acquisition

Assignment Help Finance Basics

Reference no: EM131408416

The book value of a share of Camden common stock on December 31 is $12. The balance sheet value and the market value of the company's assets and liabilities as of that date follow:

On December 31, Conglomerate, Inc. purchased 100 percent of the outstanding stock of Camden for $22 per share.

a. How many shares of common stock did Camden have outstanding as of December 31?

b. Compute the per-share net market value of Camden's common stock.

c. Why would Conglomerate pay more than the per-share market value for a share of Camden common stock?

d. Prepare the entry that reflects the acquisition.

Reference no: EM131408416

Questions Cloud

Write a comment on protection of susceptible in health care : Protection of the susceptible requires use of all measures necessary to maintain or improve general health. The individual who has good mental and physical health has good resistance to disease. Good personal hygiene, including avoidance of known ..

Evaluate managements claim of random selection : At the 0.025 level of significance, evaluate management's claim of random selection. Using the chi-square table in Appendix A, what is the most accurate statement that can be made about the exact p-value for the test?

Whether accident took place in rural versus an urban setting : At the 0.01 level of significance, can we conclude that the type of collision is independent of whether the accident took place in a rural versus an urban setting?

Important dimensions of diversity that relate to teamwork : What are some important dimensions of diversity that relate to teamwork? How can managers best appreciate and effectively use the diversity of their workers?

Prepare the entry that reflects the acquisition : Why would Conglomerate pay more than the per-share market value for a share of Camden common stock?

Corporate responsibility of conflict of interest : Question 1: What do you do as HRM? Question 2: Explain this in the context of the corporate responsibility of conflict of interest.

Why is the historical context an important consideration : Why is the historical context an important consideration? What are some the key Factors related to the historical context

What is the most accurate statement : Using the chi-square table in Appendix A, what is the most accurate statement that can be made about the exact p-value for the test?

Can we conclude that three techniques are equally effective : For mechanics trained by techniques B and C, the respective percentages are 50% and 65%. At the 0.05 level, can we conclude that the three techniques are equally effective?

User Account

All Pages