Examlex

Solved

Estimating the Value of Goodwill to Be Included in an Offering

question 3

Essay

Estimating the value of goodwill to be included in an offering price can be done under several alternative methods. The excess earnings approach is frequently used. Identify the steps used in this approach to estimate goodwill.


Definitions:

Population Proportion

The ratio of members in a population that have a particular attribute, often estimated from sample data.

Chi-squared Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in categorical datasets.

Chi-squared Distribution

A statistical distribution that is used primarily in hypothesis testing and is derived from the sum of squared standard normal deviates.

Proportion

A statistical measure that indicates the fraction of the total number of items in a certain category or characteristic.

Related Questions