Average profits of a firm during the last few years are $80,000 and the normal rate of return in a similar business is 10%. If the goodwill of the firm is $100,000 at 4 years' purchase of super profit, find the capital employed by the firm.

Answer rating: 100% (QA)

To find the capital employed by the firm we can use the concept of super profit and the formula for ... View the full answer