Long-term assets 1 425 000
275 000
Total assets
$ 2 000 000
$750 000
Current liabilities
350 000
212 500
950 000
300 000
Long term liability
Shareholders' equity
Total liabilities and equity
700 000
237 500
$ 2 000 000
$750 000
Assume imputed interest charge of 12%.
Required:
a) Explain why Mr. Viliame may be reluctant to acquire B Co.. Show calculations to support your
explanation.
(7 marks)
b) What would you recommend
the CEO of ABC Group in terms of measuring and evaluating