• 2 shares in Tom Ltd for every 5 shares in Jerry Ltd. Jerry Ltd had one million shares outstanding. The market value of Tom Ltd.'s shares was $2.20 at the transfer date. Share price of Jerry Ltd was $0.50 at the transfer date. Share issue expenses paid were $1,000.. Tom Ltd to pay sufficient cash to Jerry Ltd to settle its liabilities. A piece of vacant land valued at $500,000 (currently recorded at $350,000) in Tom's books was to be transferred to Jerry Ltd as part settlement of the purchase consideration.
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- 7. Brother LLC considered the takeover of Hood LLC. Both companies operated in the same industry, but Hood LLC had access to some infrastructure assets that would be useful to the operations of Brother LLC. After due consideration including an in-depth financial analysis of the project, on 1 January 2020, Brother LLC made an offer to the shareholders of Hood LLC: • Brother LLC would pay one fully paid ordinary shares in Brother LLC plus OMR 5 cash for every preference share in Hood LLC, payable at acquisition date. • Brother LLC would pay two fully paid ordinary shares in Brother LLC plus OMR 3 in cash for every ordinary share in Hood LLC. Half the cash is payable at acquisition, and the other half is payable after 1 year. The shareholders of Hood LLC accepted the offer. Of the ordinary shareholders, 80% accepted the offer while of the preference shareholders, 90% accepted the offer. At 30 March 2020, the share capital of Hood LLC consisted of 100 000 fully paid ordinary shares at OMR…Ch. 29. In 2020, CVR Energy, Inc. began purchasing stocks of Delek US Holdings, Inc. CVR acquired 15% stake in Delek in hopes to replace 3 of Delek’s board members. This is an example of which of the following? Group of answer choices white knight street sweep tender offerCh. 29. In 2021, Google, a company that specializes in internet-related service, acquired Fitbit, the fitness tracking company, to bolster its wearable capabilities. Google paid shareholders $7.25 per share in cash. This is an example of which of the following? Group of answer choices merger horizontal acquisition vertical acquisition conglomerate acquisition
- Firm E is going to acquire Firm F. The acquisition will be done via a share exchange, whereby Firm E will exchange 2.65 of its shares for every one of Firm F's shares. Synergy is $1,250,000 in total. Firm E has 350,000 shares outstanding trading at $35 each. Firm F has 45,000 shares outstanding trading at $84 each. What would the exchange ratio have to be for the NPV of the deal to be zero? Question 1 options: A) 3.13 shares of E for every 1 of F B) 0.41 shares of E for every 1 of F C) 3.15 shares of E for every 1 of F D) 2.40 shares of E for every 1 of F E) 3.19 shares of E for every 1 of FCompensation expense answer Year 1 = 645,000 Year 2 = 810,000 Year 3 = 1,221,000 PROVIDE COMPUTATIONS 8. The year in which the share options vested to the entity’s employeesa. Year 1 c. Year 3b. Year 2 d. The option did not vest9. Share options outstanding at the end of year 2a. P822,000 c. P645,000b. P810,000 d. P430,000RM1. A subsidiary entity, Claystone Ltd, is for sale at a price $ 15 million. There has been some interest from prospective buyers but no sale as yet. One buyer has made an offer of $ 14 million but the directors of the parent company have declined the offer. An accountant firm which was appointed by the parent company has just submitted a report and advice that the fair value of Claystone Ltd is $ 16.5 million. They have decided not to lower the sale price of Claystone Ltd at the moment. Discuss whether the subsidiary can be classified as held for sale.
- Q2 Petro Ltd acquired 60% of Carlos Ltd’s 500,000 R1 equity shares on 1st January 2019 for a consideration of R5 cash per share. At the date of acquisition, net assets and liabilities in Carlos Ltd were valued at R1,600,000 and the fair value of the non-controlling interest was R800,000. Required: 1. Determine the acquisition date. 2. Calculate goodwill or gain on bargain purchase if any using Proportionate of Net Assets Method 3. Calculate goodwill or gain on bargain purchase if any using Fair Value Method111. On June 30, 20X1, ABC Corp exchanged 6,000 shares of XYZ Company P10 par value ordinary shares for patent owned by McKing. The XYZ shares was acquired in 20X1 at a cost of P160,000. At the exchange rate XYZ shares had a fair value of P45 per share, and the patent had a carrying amount of P320,000 in McKing's books. ABC Corp should record the patent at: 320,000 270,000 180,000 160,00037. AAA, BBB, CCC, and DDD are partners sharing profits in the ratio of 3/21, 4/21, 6/21,and 8/21. Their capital balances on December 31, 2030 are as follows: AAA P 500BBB 12,500CCC 12,500DDD 4,500 The partners decide to liquidate their firm and they accordingly convert the noncash assets into P11,600 cash. After paying liabilities of P1,500, they have P11,100 to divide. How much was the distribution to partner CCC?a. P0b. P3,560c. P4,160d.P7,100
- 1.Firm A is planning on merging with the Firm B. Firm A will pay Firm B’s stockholders the current value the of their stock plus one-half on the synergy, which is $120, in shares of firm A. Firm A currently has 4000 shares of stock outstanding at a market price of $21 a share. Firm B has shares outstanding at a price of $10 a share. What is the value of the merged firms? A.$96240 B.$88120 C.$96000 D.$84120 E.$92360 2.Which of the following not true regarding financial statement A.Group financial statement be produced by each subsidiary as well as the parent entity B.Profit must be separated between members of the parent company and that of minority interest C.Minority interest share of equity represents that ‘part of a subsidiary’s equity not allocated to members of the parent company. D.Group financial statements must be produced by the parent entity only. E.None of the options provided.Consider the following premerger information about Firm X and Firm Y: 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 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $4 per share. Assuming that neither firm has any debt before or after the merger, what are the total assets of Firm X after the merger?(please correct answer and) Question 26 Firm A and Firm B are both all - equity firms. Firm A has 2,200 shares outstanding at a market price of $16 per share. Firm B has 4,020 shares outstanding at a market price of $18 per share. Firm B is acquiring Firm A for $30,000 in cash. The incremental value of the acquisition is $3,400. What is the net present value of the acquisition? $840-$990-$1,020 $ 8,600 $9,050