Price = $8.10 × 7.5 = $60.75 (see problem #40 for EPS calculation)
Millicom is acquiring Vikonic's outstanding common stock for $15 million. Financial information (in $ millions) on these two firms prior to the acquisition is as follows:

-What are the total assets and stockholders' equity (in $ millions) if the pooling of interests method had been used as the accounting method for this merger?
A)$130, $63
B)$130, $67
C)$132, $65
D)$132, $67

Question

Price = $8.10 × 7.5 = $60.75 (see problem #40 for EPS calculation)
Millicom is acquiring Vikonic's outstanding common stock for $15 million. Financial information (in $ millions) on these two firms prior to the acquisition is as follows:
 
-What are the total assets and stockholders' equity (in $ millions) if the pooling of interests method had been used as the accounting method for this merger?
A)$130, $63 
B)$130, $67 
C)$132, $65 
D)$132, $67

Quizplus · Accepted Answer

Stockholders' equity = $50 + $13 = $63
Liabilities = $40 + $27 = $67
Total assets = $90 + $40 = $130