Question

write short notes no
(a) meaning of valuation of goodwill
(b) methods of issue
(c) forfeit and shares​

Answer 1

Answer:

a) meaning of valuation of goodwill- VALUATION OF GOOWILL; A firms' reputation of generally assessed by Goodwill earned by the firm during its tenure. ... We may define Goodwill as; “The capacity of a business to earn profits in future is basically what it meant by the term “Goodwill”. “ Goodwill” is a present value of a firms' anticipated excess earnings.”

b) methods of issue- An offer for sale in which the public are invited, through advertisements in the national press, to apply for a new issue of shares or other securities at a price fixed by the company. Compare issue by tender. See also initial public offering.

c) forfeit and shares- Forfeiture of share means the cancellation of the shares for non-payment of calls due. But, the company can forfeit shares only if the Article of Association of the company allow forfeiture.

Answer 2

Explanation:

The valuation of goodwill is often based on the customs of the trade and generally calculated as number of year's purchase of average profits or super-profits. ... After calculating average profit, it is multiplied by a number (3 or 4 years), as agreed. The product will be the value of the goodwill.

7 Methods of Issuing Corporate Securities | Financial Management

Public Issue or Initial Public Offer (IPO):

Private Placement:

Offer for Sale:

Sale through Intermediaries:

Sale to Inside Coterie:

Sale through Managing Brokers:

Privileged Subscriptions:

A forfeited share is an equity share investment which is cancelled by the issuing company. A share is forfeited when the shareholder fails to pay the subscription money called upon by the issuing company.

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