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Question 2: The following information is relating to ABC Company: Normal Rate of Return @ 8% Capital Employed Rs 4,00.000 Profit for last 5 years
Question 2: The following information is relating to ABC Company: Normal Rate of Return @ 8% Capital Employed Rs 4,00.000 Profit for last 5 years are Dhs 20,000, Dhs. 25,000: Dhs 45,000 Dhs. 40,000 and Dhs. 55,000 Compute the value of goodwill using super profit method. Clearly show calculations for average profit, super profit and value of goodwill
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