Question: Consider the data listed below and compute the total purchase price paid for the assets in the transaction. Cash Paid $200,000,000 Fair Value of Stock

  1. Consider the data listed below and compute the total purchase price paid for the assets in the transaction.

Cash Paid

$200,000,000

Fair Value of Stock based on stock price on date of deal closing

$293,040,000

Fair Value of Stock based on stock price on date of deal announcement

$211,640,000

Fair Value of Earnout

$48,970,000

Net Book Value of the Assets

$204,000,000

Long-term Debt Assumed

$77,000,000

Other Liabilities Assumed

$34,000,000

Net Income

$31,760,000

Value of replacement stock option awards attributable to precombination services

$5,000,000

Value of replacement stock option awards attributable to post combination services

$7,000,000

Acquisition related costs

$4,000,000

The computed total purchase price paid for the assets in the transaction is:

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