(d) 29.24 kroner. (e) I choose not to answer. 29. Consider the following pre-mer
ID: 2789234 • Letter: #
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(d) 29.24 kroner. (e) I choose not to answer. 29. Consider the following pre-merger information about Salmon AS an d Trout AS: Salmon Trout Total earnings (E) 74,000 35,000 Share outstanding 21,000 10,000 Per share values: Market (E) 25 20 28 Book (E) Assume that Salmon acquires Trout by paying cash for all the shares outstanding at a merger premium of ES per share. The firms have no debt before and after the merger. What is the goodwill created in the merger? (a) £ 3,000. (b) £21,000. (c) £28,000. (d) £50,000. (e) I choose not to answer.Explanation / Answer
gOOdwill =Premium *Number of shares outstanding of target
= 5*10000
= 50000
correct option is"D"
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