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An acquirer bought 100% of the equity capital of a target company for 129m.
The acquirer also intends to refinance the debt of the target as part of the deal.
The transaction was funded by 5.0m of balance sheet cash, an equity issuance with a value of 60.0 and the remainder with new debt.
Calculate the goodwill on the consolidated balance sheet using the information below.
| | Acquirer | Target |
| Cash | 9.0 | 7.0 |
| Operating current assets | 157.0 | 179.0 |
| PP&E | 426.0 | 241.0 |
| Intangibles | 268.0 | 76.0 |
| Goodwill | 12.0 | 20.0 |
| Total assets | 872.0 | 523.0 |
| | | |
| Short term debt | 29.0 | 13.0 |
| Operating current liabilities | 291.0 | 112.0 |
| Long term debt | 357.0 | 224.0 |
| Operating long term liabilities | 49.0 | 45.0 |
| Total liabilities | 726.0 | 394.0 |
| | | |
| Common stock | 32.0 | 54.0 |
| Retained earnings | 114.0 | 75.0 |
| Total equity | 146.0 | 129.0 |
| Total liabilities and equity | 872.0 | 523.0 |
Select one:
141.0
44.0
20.0
32.0
Answer & Explanation
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