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: ?
? $$\begin{array} { l r r } & \text { Millicom}& \text { Vikonic } \\\text { Total assets, book value } & \$ 90 & \$ 40 \\\text { Liabilities, book value } & 40 & 27 \\\text { Stockholders' equity, book value } & 50 & 13\end{array}$$ ?
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

---

Definitions:

Claim Number

A unique identifier assigned to an insurance claim, used for tracking and managing the claim process.

Delinquent Claim

A term used in healthcare and insurance to describe a claim that has not been paid or settled within the expected or agreed time frame.

Anticipated Date

The expected or scheduled date for an event or action to happen, often used in planning or arranging.

Insured ID Number

A unique identifier assigned to an individual covered under an insurance policy, used for identification and billing purposes.