6. Trabant Co purchased all of the ordinary share capital of Skoda Co during 208....
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6. Trabant Co purchased all of the ordinary share capital of Skoda Co during 208. On this date the fair value of the net assets of Skoda Co was $15 million. The terms of the purchase agreement provided for immediate cash consideration of $10 million and a further $10 million deferred for 12 months. Trabant Co paid its advisors $1 million in costs directly related to the acquisition. Trabant Co's cost of capital is 6%. What goodwill arises on the acquisition
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6. Trabant Co purchased all of the ordinary share capital of Skoda Co during 208. On this date the fair value of the net assets of Skoda Co was $15 million. The terms of the purchase agreement provided for immediate cash consideration of $10 million and a further $10 million deferred for 12 months. Trabant Co paid its advisors $1 million in costs directly related to the acquisition. Trabant Co's cost of capital is 6%. What goodwill arises on the acquisition 