183k views
4 votes
Alder pays cash of $4,422,250 to acquire Beech. No stock is issued, and Alder pays $51,400 for legal fees to complete the transaction.

User Soula
by
7.4k points

1 Answer

5 votes

Final Answer:

Alder paid a total of $_{4,422,250}^{cash}$ to acquire Beech, and an additional $51,400 for legal fees to complete the transaction.

Step-by-step explanation:

Alder's acquisition of Beech involved two significant financial components: the cash payment for the acquisition and the legal fees incurred during the transaction.

Firstly, the cash payment for the acquisition amounted to $_{4,422,250}^{cash}$. This indicates that Alder used cash resources amounting to $4,422,250 to acquire Beech. The use of the subscript "cash" emphasizes that this payment was made in cash rather than through the issuance of stock. This straightforward calculation reflects the direct financial impact on Alder's resources as a result of the acquisition.

Additionally, Alder incurred legal fees of $51,400 during the acquisition process. These fees are essential for completing the transaction legally and ensuring that all necessary documentation and compliance requirements are met. While this cost is not directly related to the acquisition price, it is a crucial component of the overall financial impact of the transaction. The inclusion of legal fees in the explanation provides a comprehensive view of the total costs associated with the acquisition beyond the purchase price.

In summary, Alder's acquisition of Beech involved a cash payment of $_{4,422,250}^{cash}$ for the acquisition itself and an additional $51,400 for legal fees. This dual expenditure reflects the comprehensive financial commitment Alder made to acquire Beech and underscores the importance of considering various associated costs in such transactions.

User Owsata
by
7.9k points