1. Assume that Firm X acquires Firm Y by paying $36m of cash. To finance for...
1. Assume that Firm X acquires Firm Y by paying $36m of cash. To finance for the acquisition, X borrowed the entire amount. The balance sheet of X and Y are as follow. Construct a post merger balance sheet using the purchase method of accounting.
|
Balance Sheet - X (in $m) |
|||
|
Cash |
25 |
Debt |
20 |
|
Fixed Assets |
95 |
Equity |
100 |
|
120 |
120 |
||
|
Balance Sheet - Y (in $m) |
|||
|
Cash |
4 |
Equity |
30 |
|
Fixed Assets |
26 |
||
|
30 |
30 |
||
Homework Answers
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1. Assume that Firm X acquires Firm Y by paying $36m of cash. To
finance for...
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