| Investing Lesson 3 |
| Quiz: How to Analyze a Balance Sheet |
Hint for the $1,000,000 Question...
| 1.) Find the premium the
acquisition company paid over book value for the coffee roaster. 2.) Take the amount you find and divide it by 40 (since the goodwill be amortized over 40 years). This will be the total goodwill charges per year. 3.) Calculate the earnings per share before goodwill charges by taking the earnings divided by the number of shares 4.) Calculate the goodwill charges per share 5.) Subtract the earnings per share by the goodwill charges per shares. This is the answer. |
