Question
The Chief Executive Officer (CEO) of B Company is contemplating selling the business to new interests. The cumulative earnings for the past 5 years amounted
The Chief Executive Officer (CEO) of B Company is contemplating selling the business to new interests. The cumulative earnings for the past 5 years amounted to P800,000. The annual earnings, based on an average rate of return on investment for this industry, would have been P145,000. If excess earnings are to be capitalized at 8%, what would have been the implied goodwill on this transaction?
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Corporate Responsibility
Authors: Tom Cannon
2nd Edition
0273738739, 9780273738732
