Mergers & Acquisitions (M&A) Modeling Exam Questions And Answers

Mergers & Acquisitions (M&A) Modeling Exam Questions And Answers 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 - ANS 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 XYZ Co. Shares Outstanding 150,000 A. $400,000 B. $250,000 C. $300,000 D. $315,000 - ANS 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 Perpetual Growth Rate 5% A. $2.20 B. $2.50 C. $3.00 D. $2.00 - ANS A. $2.20 Given the above screenshot, what is the correct closing cash balance in cell O29? (Rounding to the closest whole number) (SAVED IN ICLOUD (OR DESKTOP B/C STORAGE FULL) AS "CBCA M AND A MODELING QUALIFIED ASSESSMENT Q4 SCREENSHOT" ON DEC. 28TH, 2022)). A. 29,585 B. 32,201 C. 28,505 D. 17,890 - ANS C. 28,505 Given the data in the above table, calculate the share exchange ratio: Target Share Price $15.50 Takeover Premium 10% Acquirer Share Price $6.50 Target Shares Outstanding 300 Acquirer Shares Outstanding 700 A. 1.12 B. 0.46 C. 2.62 D. 4.19 - ANS C. 2.62 Given the above data, what is the amount of stock consideration involved in the deal? (Rounding to the closest whole number) Acquirer Shares Outstanding 800,000 Target Shares Outstanding