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Goodwill

Shareholder's equity refers to the portion of a company's assets that belong to its shareholders. However, there are times when this equity exceeds the value of the company's tangible assets, such as buildings or equipment. This excess is known as goodwill and represents the company's intangible value, such as its reputation or brand recognition. Goodwill is an important concept to understand in the world of finance, as it plays a significant role in determining a company's overall value and financial health.

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