Effect of Proposed Dividend in valuation of Goodwill

This discussion explores whether proposed dividends should be deducted when valuing goodwill. While pre-acquisition dividends are typically adjusted against the cost of investment, the consensus leans towards not deducting proposed dividends from assets when calculating goodwill. However, a nuance arises with preference shares, where deducting the preference share capital might necessitate deducting the associated preference dividend.