Answer:
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
Explanation:
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Total Fair Assets=Fair Value of Assets-Fair Value if Liabilities
Total Fair Assets= $89,900-$15,200
Total Fair Assets= $74,700
Longhorn Goodwill=Price Paid to Acquire - Total fair Assets
Longhorn Goodwill=$82,620-$74,700
Longhorn Goodwill=$7920
Longhorn should record goodwill on this purchase of $7920.
I<span>n this problem, the market net worth of the stocks of Tangshan mining is $5,000,000 (100,000 shares x $50.00 per share). The stock split would not affect the price of the stock. This transaction would only affect the number of shares of the company. Since this is a 3-for-2 stock split, this is clearly a split </span>up.<span> Therefore, this transaction would increase the number of shares while reducing its price per share. The shares would become 150,000 shares now ({100,000 shares/2} x 3). To get the current price of the share, you just need to divide $5,000,000 by the new number of shares which </span>is<span> 150,000 shares. You would then get $33.33 per share.</span>
Answer:
269 million
Explanation:
The free cash flow to the firm is 275 million
The interest expense is $60 million
The tax rate is 35%
The net debt of the firm increases by $33 million
Therefore the free cash flow to the equity holders of the firm can be calculated as follows
= 275 million-60 million(1-35/100) + 33 million
= 275 million- 60( 1-0.35) + 33 million
= 275 million- 60(0.65) +33 million
= 275 million - 39 million + 33 million
= 236 million + 33 million
= 269 million
Answer:
$60,000
Explanation:
Hansen's annual salary allowance= 30,000
Hernandez's annual salary allowance= 10,000
annual interest allowance of Hensen= 0.1 × 50,000= 5000
annual interest allowance of Hernandez= 0.1 × 50,000= 5000
Remaining balance=100000- 5000-5000-30000-10000= 50000
Share of each partner from remaining balance= 25000
Hensen's income= 25,000+ 5000+ 30000= 60,000