M03-02-PoolingvsPurchaseLeverage

Model03-02AEffectsonLeverageofaCashPurchaseAdjustmentsCombinedAcquirerTargetDebitCreditFirmExcesscash$25$25$0Otherassets752095TobeAllocated1515——-——-——-——-——-Totalassets$100$20$110Totaldebt501060Shareholders'equity50101050——-——-——-——-——-TotalClaims$100$20$25$25$110Debt/Equityratio0.51.20M-9Model03-02BEffectsonLeverageofaPurchasewithDebtAdjustmentsCombinedAcquirerTargetDebitCreditFirmExcesscash$0$0Otherassets752095TobeAllocated1515——-——-——-——-——-Totalassets$75$20$110Totaldebt50102585Shareholders'equity50101050——-——-——-——-——-TotalClaims$100$20$25$25$135Debt/Equityratio1.01.70M-10Model03-02CEffectsonLeverageofaStockforStockPurchaseAdjustmentsCombinedAcquirerTargetDebitCreditFirmExcesscash$0$0Otherassets10020120TobeAllocated1515——-——-——-——-——-Totalassets$100$20$135Totaldebt501060Shareholders'equity5010102575——-——-——-——-——-TotalClaims$100$20$25$25$135Debt/Equityratio1.00.80M-11