1. Assume that Firm X acquires Firm Y by paying $36m of cash. To finance for the...

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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

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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Posted Date: Feb 26, 2024 02:58 AM

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1. Assume that Firm X acquires Firm Y by paying $36m of cash. To finance for the...

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