Chapter_29

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

This preview shows pages 1–8. Sign up to view the full content.

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."

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
k"
Chapter 29 Question 1 Input Area: Cash (millions) \$740 Value of company \$650 Output Area: Minimum estimated value \$90

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## 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.

### Page1 / 21

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

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online