Could we explain that goodwill is equal to brand value

Could we explain that goodwill is equal to brand value?

E

Expert

Verified

Goodwill is only the difference between the price paid and the book value. Its dimension is because of more than just brand value that value added of land and real assets, the value of a inspired organization, distribution channels and corporative culture. There are also situations, particularly with high interest rates, here the price of the shares is lower than their book value; it means the value of the brand is negative.

   Related Questions in Corporate Finance

  • Q : Explain Cost of capital aspect Cost of

    Cost of capital aspect: Estimation of WCR is beneficial from the point of view of cost of capital too. A sound working capital position is beneficial from the point of view of both owners and lenders of the company. A sufficiently positive position me

  • Q : Public Finance which type of tax,

    which type of tax, direct or indirect is applicable in underdeveloped countries? Why? Show your critical areas and weaknesses.

  • Q : How can optimal capital structure be

    How can optimal capital structure be calculated?

  • Q : Who introduced put–call parity Who

    Who introduced put–call parity?

  • Q : Market for Corporate Bonds Write some

    Write some point regarding Market for Corporate Bonds.

  • Q : Problem regarding purchasing machine

    Alger Corp needs to buy some construction equipment for $50,000 that has a helpful life of 4 years with no salvage value. The Alger utilizes straight-line depreciation. Alger contains a tax rate of 30%, and it employs a discount rate of 10%. The equipment will produce

  • Q : Purchaing or leasing problem Crawford

    Crawford Corporation is planning to lease a machine for the next 4 years for an annual lease payment of $3,000 paid in advance, plus a non-refundable initial fee of $3,000. There is a 1-year delay for the tax benefits of leasing. Crawford may buy the machine, deprecia

  • Q : Discretion can distort results Discuss

    Discuss how management’s discretion in applying accounting rules can mislead investors. Provide three examples and how the discretion can distort results?

  • Q : Efficiency Ratios Efficiency Ratios :

    Efficiency Ratios: These ratios comprise Receivables Turnover, Inventory Turnover, Asset Turnover and Net Working Capital Turnover ratios. Efficiency ratios show the utilization of Assets of the company thus as to generate Revenue that is, the best ut

  • Q : Road King Trucks Project I want to know

    I want to know how much do you charge for doing the project?

©TutorsGlobe All rights reserved 2022-2023.