Problem #4 Assuming the following transaction details for an acquisition, calculate the amount of goodwill that will be recorded on the transaction: Purchase consideration given = 45.5 million shares...


Using this information how would I go about calculating Goodwill?


Problem #4<br>Assuming the following transaction details for an acquisition, calculate the amount of goodwill that will be recorded on the transaction:<br>Purchase consideration given = 45.5 million shares issued, plus $26,000,000 of cash<br>Share price on the closing date of the transaction = $12.30 per share<br>The target company had a cash balance of $12,800,000 on the closing date of the transaction.<br>The fair value of non-cash assets acquired in the transaction = $820 million<br>The fair value of the target company's liabilities acquired = $388 million<br>

Extracted text: Problem #4 Assuming the following transaction details for an acquisition, calculate the amount of goodwill that will be recorded on the transaction: Purchase consideration given = 45.5 million shares issued, plus $26,000,000 of cash Share price on the closing date of the transaction = $12.30 per share The target company had a cash balance of $12,800,000 on the closing date of the transaction. The fair value of non-cash assets acquired in the transaction = $820 million The fair value of the target company's liabilities acquired = $388 million

Jun 10, 2022
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