Goodwill is an:
A) estimate of the excess of the purchase price over a target firm's equity.
B) the difference between target firm's book value of assets over the book value of debt.
C) increase due to collective synergies.
D) increase in the target's stock price when a possible acquisition is announced.

Question

Quizplus · Accepted Answer

Goodwill is the estimated value of intangible assets, such as reputation or brand recognition, that are not reflected in the target firm's book value. It represents the excess of the purchase price over the target firm's equity.

Goodwill Is An