Psyche Company wants to acquire Trim Company. Trim's ROI has been above average for its industry; net income has averaged $140,000 a year more than the industry average. These "excess" earnings are expected to continue at this amount for 5 years. Assuming a discount rate of 8%, how much goodwill will arise from Psynches' purchase of Trim?

Answer rating: 100% (QA)

Years 1 Net Income 2 P... View the full answer