Week 4 DQ 1

Mergers and Acquisitions”Please respond to the following:

  • Discuss the concept of goodwill and the reason why balance sheets show it as an asset. Determine whether or not you believe that some companies deliberately inflate this number. Provide a rationale for your response.
  • Examine the Free Cash Flow to Equity approach (FCFE). Determine the essential aspects in which this approach differs from other models, as well as the most subjective part of using this approach. Provide a rationale for your response.

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