BuyerCo is offering $58.73 for each share of ValueCo common stock. BuyerCo’s current share price is $70.00, and ValueCo’s current share price of $43.50. Fully diluted shares outstanding of VaueCo is approximately 80 million. Meanwhile, ValueCo also has net debt of $1,250 million.

Sources of Funds for BuyerCo:

$2,200 million of term loan B
$1,500 million of senior notes
$300 million of cash on hand (including $50 million of existing BuyerCo cash)

Uses of Funds for BuyerCo:

Purchase of ValueCo’s equity for $4,700 million
Repayment of ValueCo’s existing $1,000 million term loan and
$500 million senior notes

Payment of total fees and expenses of $150 million, consisting of:

i. M&A advisory and other transaction fees of $40 million.
ii. debt financing fees of $90 million, and iii) tender/call premiums of $20 million
ValueCo’s approximate equity value is $3,500 million and existing goodwill is $1,000 million.

a. How much is the net identifiable asset for ValueCo?
b. How much goodwill will be created after the transaction?

The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. the ceo generally works under the board and its chairman, and the board generally has the authority to remove the ceo under certain conditions. the ceo, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. it is possible for a person to simultaneously serve as ceo and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. true false

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.