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?
Get 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 there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
How did the Federal Reserve attempt to avert the complete collapse of the financial system during the financial crisis of 2008? It ordered commercial banks to stop making loans. It encouraged the development of a credit crunch.
Answers (2)
Is a permit required to put in ev outlet in pima county?
Answers (1)
Which of these describes how a fixed-rate mortgage works? The property taxes on a fixed-rate mortgage never get any higher The purchase price of the house never goes up with a fixed rate mortgage The monthly payment of a fixed rate mortgage never
Answers (1)
Ziff Tech Inc., a technological firm, funds Tictoe Corp., a computer processor designing company, with five percent of its annual revenue. Which of the following best describes the alliance between Ziff Tech and Tictoe Corp.?
Answers (1)
Falcon Co. produces a single product. Its normal selling price is $30.00 per unit. The variable costs are $19.00 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month.
Answers (1)
New Questions in Business
Pirate Corporation acquired 85 percent of Ship Company's voting shares of stock in 20X7. During 20X8, Pirate purchased 50,000 circuit boards for $15 each and sold 28,000 of them to Ship for $20 each.
Answers (1)
The term of an invoice of $2800 were 2/10, 1/30, n/60. The buyer sent a part payment of $980 within 10 days and the balance due 15 days later. How much cash discount could be taken?
Answers (1)
Baxter company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring, and finishing. when the sets are completely finished, out of which account should the cost be transferred?
Answers (1)
Who is responsible for first mass producing cars on the assembly line in world war 1?
Answers (1)
What would you call a object that makes people shut up
Answers (1)