Schweser Vol 2 Exam 3am #23 guess, understand, interest, question, anybody

hariRaj

Can anybody explain this question to me? I don’t understand where they are getting the $600m of non-controlling interest. I guess I don’t really understand stock purchases in the acquisition method. Material in Schweser on this topic seems so easy, but this question really rocked my world…

luckygiftvn

I have the same problem. the whole answer doesn’t make sense to me. it just makes me panic for knowing so little.

rohitdoshi

Purchased a 60% controlling interest for $900 M, so 900/0.6 = $1,500 M for all Gremlin Corp’s value. Non controlling interest = 1,500 - 900 = 600 M.
Hope this helps.