Wall Street Prep Premium Exam Questions and 100% Correct Answers Graded A+ pass guarantee 2024 update

Wall Street Prep Premium Exam Questions and 100% Correct Answers Graded A+ pass guarantee 2024 update Pushdown accounting: - Answer Refers to the establishment of a new accounting and reporting basis in an acquired company's separate financial statements Use the following information to answer the question below:• Acquirer purchases 100% of target by issuing $100 million in new debt to purchase target shares, carrying an interest rate of 10% • Excess cash is used to help pay for the acquisition • Acquirer expects to be able to close down several of the target company's old manufacturing facilities and save an estimated $2 million in the first year • Target PP&E is written up by $25 million to fair market value • Investment bankers, accountants, and consultants on the deal earned $30 million in fees Which of the following adjustments would be made to the pro forma income statement? - Answer Advisory fee expense of $30 million Depreciation expense increase due to PP&E write-up Pre-tax synergies of $2 million Use the following information to answer the question below: • Acquisition takes place on July 1, 2013 • Acquirer FYE - June 30 • Target FYE - December 31 • Acquirer expected EPS for FYE June 2014 is $2.40 • Target consensus EPS for FYE Dec 2013 is $1.12 • Target consensus EPS for FYE Dec 2014 is $1.78 Assuming 360 days in a year for simplicity, calculate target EPS adjusted to acquirer FYE in the transaction year (FYE June 2014) - Answer $1.45