An analyst would include goodwill in invested capital when measuring aggregate value creation for a company's shareholders.

Question

Quizplus · Accepted Answer

Goodwill represents the premium paid by a company for an acquisition, which is included in the invested capital. Therefore, an analyst would include goodwill in the calculation of invested capital when measuring aggregate value creation for a company's shareholders.

An Analyst Would Include Goodwill in Invested Capital When Measuring