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Mergers & Acquisitions (M&A) Modeling 2024/2025 Exam Questions with 100% Correct Answers | Latest Update

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Mergers & Acquisitions (M&A) Modeling 2024/2025 Exam Questions with 100% Correct Answers | Latest Update 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 -

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Mergers & Acquisitions (M&A) Modeling
2024/2025 Exam Questions with 100%
Correct Answers | Latest Update



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 - 🧠ANSWER ✔✔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


COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED

,XYZ Co. Stock Price

$10.00

ABC Co. Cash

$2,000,000

XYZ Co. Cash

$1,500,000

ABC Co. Shares Outstanding

300,000

XYZ Co. Shares Outstanding

150,000




A. $400,000

B. $250,000

C. $300,000


D. $315,000 - 🧠ANSWER ✔✔C. $300,000




COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED

, 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

Perpetual Growth Rate

5%




COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED

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