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FCF_11th_edition_Chapter_26_Problem_2_template.xlsx

Chapter 26

			Chapter 26
			Problems 2, 4, 5, 10
			Input boxes in tan
			Output boxes in yellow
			Given data in blue
			Calculations in red
			Answers in green
			NOTE: Some functions used in these spreadsheets may require that
			the "Analysis ToolPak" or "Solver Add-in" be installed in Excel.
			To install these, click on "Tools\|Add-Ins" and select "Analysis ToolPak"
			and "Solver Add-In."

Chapter 26
Question 2
Input Area:
	Firm X	Firm Y
Total earnings
Shares outstanding
Per-share values
Market
Book
Merger premium
Output Area:
Asset from X (book value)		$ - 0
Asset from Y (market value)		$ - 0
Purchase price of Y		$ - 0
Goodwill		$ - 0
Total assets XY = Total equity XY		$ - 0

Chapter 26
Question 4
Input Area:
Silver Enterprises
Current assets		Current liabilities
Other assets		Long-term debt
Net fixed assets		Equity
Total	$ - 0		$ - 0
All Gold Mining
Current assets		Current liabilities
Other assets		Long-term debt
Net fixed assets		Equity
Total	$ - 0		$ - 0
Market value of fixed assets
New long-term debt
Output Area:
Silver Enterprises - Post Merger
Current assets	$ - 0	Current liabilities	$ - 0
Other assets	-	Long-term debt	-
Net fixed assets	-	Equity	-
Goodwill	-
Total	$ - 0		$ - 0

	Chapter 26
	Question 10
	Input Area:
		Firm A	Firm B
	Total earnings
	Shares outstanding
	Price per share
	Acquisition price
	Output Area:
	Cost	$ - 0
	Shares given up by A	ERROR:#DIV/0!
a.	EPS	ERROR:#DIV/0!
b.	Old P/E	ERROR:#DIV/0!
	New price	ERROR:#DIV/0!
c.	P/E	ERROR:#DIV/0!
d.	Price	ERROR:#DIV/0!
	P/E	ERROR:#DIV/0!
	At the current acquisition price, this is a
	ERROR:#DIV/0!	acquisition.