Question: Pls select options for these M&A Qs The intangible assets of a company getting acquired were written up for book purposes from a pre-deal book
Pls select options for these M&A Qs



The intangible assets of a company getting acquired were written up for book purposes from a pre-deal book value of $50m to $60m but NOT for tax purposes, where the tax basis remained $50m. Assume that target's definite lived intangible assets are amortized on a straightline basis over 15 years for both book and tax purposes. Also assume that the acquirer has a tax rate of 40%. What is the impact on goodwill as a result of the book write-up and no tax step up? No impact on goodwill Goodwill is lower by $6m Goodwill is higher by $6m Goodwill is higher by $4m Use the following data to answer this question. It is January 1, 2017 and Pegasus is contemplating the acquisition of competitor Chimera. The following details are available (\$ in millions except per share data): Assume all activities below occur on January 1, 2017: You also obtained the following transaction-related data: What is the sum of all acquisition adjustments pertaining to the Acquisition Financing, needed to calculate 2017 pro forma (combined) GAAP pre-tax income? Hint: There will be three components - lost interest income, interest from new debt (acquisition debt \& Chimera debt), and reduced Chimera debt interest. 21.66 3.10 3.96 4.01 4.16 Use the following data to answer this question. It is January 1, 2017 and Pegasus is contemplating the acquisition of competitor Chimera. The following details are available (\$ in millions except per share data): Assume all activities below occur on January 1, 2017 : You also obtained the following transaction-related data: What is the sum of all Pro forma Pre-tax Income acquisition adjustments pertaining to Synergies, Goodwill and write-ups? 1.00 2.00 2.16 3.00 6.16
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