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 Psyche's purchase of Trim?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Twenty years-ago Goran Corp. issued 30-year bonds with a face value of $1,000. The coupon rate on these bonds is 8 percent paid semiannually. A current bondholder is considering selling the bond today. The market rate is now 12 percent.
Answers (1)
When someone states, "I don't have money to start a business," what fact might one consider? a. Most businesses start without any formal investment. b. This is a valid reason for not starting a business. c.
Answers (1)
Which two related lists should be added to the Opportunity page layout to track how Campaigns contribute to the overall pipeline? Choose 2 answersA. Open ActivitiesB. Campaign InfluenceC. Campaign MembersD. Contact Roles
Answers (1)
Which of the following economic changes are consistent with demand-pull inflation? Check all that apply. Falling economic output Rising economic output A sudden, sharp increase in the costs of raw materials or energy inputs
Answers (1)
Which of the following are miscellaneous taxes? a. Hunting license fees b. License plate fees c. Gasoline tax d. Marriage license fees e. Inheritance tax
Answers (1)
New Questions in Business
Sal, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition reimbursement program. As a result, some of these employees are participating in soldiering.
Answers (1)
An investment project provides cash inflows of $1,275 per year for eight years. a. What is the project payback period if the initial cost is $4,100? (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) b.
Answers (1)
Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals : A. 118 B. 116 C. 86 D. 85
Answers (2)
Jim, who has an internal locus of control, failed his last history test. jim is apt to respond to the failing grade by
Answers (1)
Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation Select one: a.
Answers (1)