Question: Combination Analysis Pro Forma Please show work fill out red Problem 2 80% Debt Pro-Forma Target Buyer NewCo Book Value Mkt Value Book Value Mkt

Combination Analysis Pro Forma Please show work fill out red

Combination Analysis Pro Forma Please show work fill out red Problem 2

Problem 2 80% Debt Pro-Forma Target Buyer NewCo Book Value Mkt Value Book Value Mkt Value 12/31/2018 12/31/2018 12/31/2018 12/31/2018 12/31/2018 Current Assets 50,000 40,000 500,000 400,000 1 PP&E 2,000,000 4,000,000 9,000,000 8,000,000 3 Goodwill Other Assets 200,000 300,000 800,000 750,000 Total Assets 2,250,000 4,340,000 10,300,000 9, 150,000 9 Accts Payable 50,000 50,000 50,000 50,000 1 Long-Term Debt 1,000,000 1,290,000 4,000,000 4, 100,000 Equity 1,200,000 3,000,000 6,250,000 5,000,000 5 Total Liabilities and Equity 2,250,000 4,340,000 10,300,000 9, 150,000 16 7 2019E EPS 1.00 3.00 18 Shares Outst 100,000 75,000 100,000.00 1 Price/Share 40.00 40.00 12 P/E Multiple 40x 13.33x 4 Debt/Capital 45.5% 39.0% 15 Interest Rate on Debt pre-tax 8.0% 16 Percent Debt 80.0% 8 Tax Rate for both 25.0%

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