machinerry pur

Bradock Corporation has net assets (total assets minus total liabilities) valued at $1,000,000 and has earned an average net income of $185,000 per year for the past several years. Teltex Company is negotiating the purchase of the company and has agreed to pay an amount equal to the value of the net identifiable assets, assume the liabilities, and pay a sum for goodwill equal to the earnings in excess of 15% on net assets, capitalized at a rate of 20%. What is the amount for goodwill Teltex is including in its offer? $ Computations Yomiko Corporation has two classes of capital stock outstanding: 20,000 shares of 5%, $100 par value, cumulative preferred stock and 25,000 shares of $2 par value common stock. The corporation had a deficit of $8,000 at the beginning of 1996 and had not paid dividends since incorporating in January 1994. In 1996, Yomiko Corporation earned net income of $650,000. How large a dividend per share did Yomiko Corpora- tion pay on the common stock in 1996 if the balance in retained earnings at the end of 1996 amounted to $204,500? $4 per share Computations