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Millicom Is Acquiring Vikonic's Outstanding Common Stock for $15 Million

Question 35

Multiple Choice

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: ?
?  Millicom Vikonic  Total assets, book value $90$40 Liabilities, book value 4027 Stockholders’ equity, book value 5013\begin{array} { l r r } & \text { Millicom}& \text { Vikonic } \\\text { Total assets, book value } & \$ 90 & \$ 40 \\\text { Liabilities, book value } & 40 & 27 \\\text { Stockholders' equity, book value } & 50 & 13\end{array} ?
What are the total assets and stockholders' equity (in $ millions) if the purchase method is used as the accounting method for this merger?


A) ?$130; $63
B) ?$130; $67
C) ?$132; $65
D) ?$132; $67

Correct Answer:

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