Description
How goodwill of GE 's company is valued-measured
- Problems that is faced in valuation
- Problems in valuation that lead to goodwill impairment
- Making sure a company does not accumulate goodwill impairment
- Approaches in valuation:
- income approach
-market approach
Explanation & Answer
Attached.
Running head: GE COMPANY
1
GE Company
Institutional Affiliation
Date
GE COMPANY
2
Problems That Is Faced In Valuation
GE Company is one of the major companies that have penetrated all the states of the
USA and also other parts of the world notably Africa, Asia and Europe. All along it has
experienced a period of rapid economic growth in terms of the assets, market and the braches
whey operate worldwide. There are several challenges facing valuation, for instance, coming
up with a good valuation report (Damodaran., 2006). Reviewing, making request and
accessing the necessary documents is another challenge. Coming up with rational
assumptions based on the past and the future performance of the firm. These are some of the
valuation problems which are encountered during the entire process.
The valuation based in terms of financial performance has generated surprising
results. However, in the last few years the company have been experiencing major financial
challenges. When the company started making loses, there was loss of goodwill especially
from the investors and th...
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