redskins44

Dreary Wrote:
-------------------------------------------------------
> Folks, this is work in progress, sorry.
> Correction to partial goodwill:
>
> Finally I got a hold of this:
>
> Subsidiary's market value (market cap for example)
> MV(sub) = $900M.
> FV (net assets) = $600M.
> BV (net assets) =$500M.
>
> Parent buys 90% of sub and pays $810M (90% of
> MV(sub).
>
> Full goodwill: MV(sub) - FV(sub) = $900M - $600M =
> $300M.
> Minority Interest in Equity section = 10% x
> MV(sub) = 10% x $900M = $90M.
>
> Partial Goodwill: Purchase price - 90% x BV(sub) -
> 90% x = $810M -0.90($500M) - 0.90 ($100M) =
> $270M.
> Minority Interest in Equity section = 10% x
> FV(sub) = 10% x $600M = $60M.

Looks good to me.