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Mergers & Acquisitions (M &A ) Modelling Questions And Answers 2024/2025 Graded A+

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MERGERS & ACQUISITIONS (M &A ) MODELLING QUESTIONS AND ANSWERS 2024/2025 GRADED A+

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MERGERS & ACQUISITIONS (M &A ) MODELLING
QUESTIONS AND ANSWERS 2024/2025 GRADED A+
What is the correct formula for Goodwill?



A. Market value of acquirer - net identifiable assets of target

B. Price paid - fair market value of net identifiable assets of target

C. Market value of acquirer - fair market value of target

D. Book value of target's equity + Adjustments - (answers)B. Price paid - fair
market value of net identifiable assets of target



ABC Co. is considering an acquisition of XYZ Co. for a cash offer that values XYZ at
20% higher than its current market capitalization. Given the above data, calculate
the takeover premium in dollar terms (Round to the closest dollar).

ABC Co. Stock Price

$26.00

XYZ Co. Stock Price

$10.00

ABC Co. Cash

$2,000,000

XYZ Co. Cash

$1,500,000

ABC Co. Shares Outstanding

300,000

, 2


XYZ Co. Shares Outstanding

150,000



A. $400,000

B. $250,000

C. $300,000

D. $315,000 - (answers)C. $300,000



Given the data in the above table, calculate equity value per share of this
hypothetical company. (Round to 2 decimal points)

Shares outstanding

150,000

Cash

120,000

Tax Rate

6%

Discount Rate

2%

Enterprise Value

300,000

Debt

90,000

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