In conducting the goodwill impairment analysis, you used several different valuation techniques. Wireless segment valuation using price-to-sales

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In conducting the goodwill impairment analysis, you used several different valuation techniques.
Wireless segment valuation using price-to-sales and price-to-EBITDA data for the Wireline segment
Wireless segment valuation using discounted cash flow analysis
FCC license valuation using a “relief-from-royalty” approach
Customer relationship valuation using discounted cash flow analysis
Which one of these valuation techniques seems most reliable to you? Explain.
Both Sprint and Nextel started business on the competitive fringes of the telecommunications industry. Until 1984, the phone business was dominated by the AT&T monopoly that stretched back to the time of Alexander Graham Bell. When founded in 1987, Nextel was originally called “Fleetcall” because it utilized wireless frequencies that had historically been used by taxi dispatchers. Sprint was formed from the combination of several companies including a local telephone company, founded in 1899, that had competed against AT&T in its monopoly days as well as a company that made wireless transmissions using the track right-of-way communication system of the Southern Pacific Railroad .... (Refer to book)

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...
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Intermediate Accounting

ISBN: 978-0324592375

17th Edition

Authors: James D. Stice, Earl K. Stice, Fred Skousen

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