Question

Nigel Corporation is interested in purchasing Lau Company Ltd. The total of Lau’s net income amounts over the last five years is $750,000. During one of those years, Lau reported a gain on discontinued operations of $94,000. The fair value of Lau's net identifiable assets is $690,000. A normal rate of return is 15%, and Nigel wants to capitalize excess earnings at 20%. Calculate the estimated value of Lau’s goodwill.


$1.99
Sales0
Views34
Comments0
  • CreatedSeptember 18, 2015
  • Files Included
Post your question
5000