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Marigold Corporation is interested in purchasing Lau Company Ltd. The total of Laus net income amounts over the past five years is $759,000. During one
Marigold Corporation is interested in purchasing Lau Company Ltd. The total of Laus net income amounts over the past five years is $759,000. During one of those years, Lau reported a gain on discontinued operations of $94,000. The fair value of Laus net identifiable assets is $695,300. A normal rate of return is 14%, and Marigold wants to capitalize excess earnings at 20%. Calculate the estimated value of Laus goodwill.
Estimated value of Lau's goodwill | $enter the Estimated value of Lau's goodwill in dollars |
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