Chapter_29

Chapter_29 - Chapter 29 Problems 1-18 Input boxes in tan...

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Chapter 29 Problems 1-18 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
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Chapter 29 Question 1 Input Area: Cash (millions) $740 Value of company $650 Output Area: Minimum estimated value $90
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Chapter 29 Question 2 Input Area: Merger premium $5 Firm X Firm Y Total earnings $40,000 $15,000 Shares outstanding $20,000 $20,000 Per-share values Market $49 $18 Book $20 $7 Output Area: Pooling of interest: Equity = Assets $540,000 Purchase method: Asset from X (book value) $400,000 Asset from Y (market value) $360,000 Purchase price of Y $460,000 Goodwill $100,000 Total assets XY = Total equity XY $860,000
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Chapter 29 Question 3 Input Area: Meat Co. Current assets $10,000 Current liabilities $3,100 Net fixed assets $14,000 Long-term debt $1,900 Equity $19,000 Total $24,000 $24,000 Loaf, Inc. Current assets $3,400 Current liabilities $1,600 Net fixed assets $5,600 Long-term debt $900 Equity $6,500 Total $9,000 $9,000 Output Area: Meat Co. - Post merger Current assets $13,400 Current liabilities $4,700 Net fixed assets $19,600 Long-term debt $2,800 Equity $25,500 Total $33,000 $33,000
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Chapter 29 Question 4 Input Area: Meat Co. Current assets $10,000 Current liabilities $3,100 Net fixed assets $14,000 Long-term debt $1,900 Equity $19,000 Total $24,000 $24,000 Loaf, Inc. Current assets $3,400 Current liabilities $1,600 Net fixed assets $5,600 Long-term debt $900 Equity $6,500 Total $9,000 $9,000 Fair market value $12,000 Paid $17,000 Output Area: Goodwill $1,600 Meat Co. - Post Merger Current assets $13,400 Current liabilities $3,100 Net fixed assets $26,000 Long-term debt $18,900 Goodwill $1,600 Equity $19,000 Total $41,000 $41,000
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Chapter 29 Question 5 Input Area: Silver Enterprises Current assets $2,600 Current liabilities $1,800 Other assets $800 Long-term debt $900 Net fixed assets $3,900 Equity $4,600 Total $7,300 $7,300 All Gold Mining Current assets $1,100 Current liabilities $900 Other assets $350 Long-term debt $- Net fixed assets $2,800
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This note was uploaded on 12/14/2010 for the course FINC 311 taught by Professor Stanley,t during the Fall '08 term at Winthrop.

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Chapter_29 - Chapter 29 Problems 1-18 Input boxes in tan...

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