The capital employed in a company is Rs. 5,00,000. The normal rate of return is 20%. During the last four years the actual returns wewre : 24 %, 26%, 28%, and 30% on capital. The goodwill of the company is taken at 4 years purchase of previous 4 years' average super normal profit. Find the goodwill.

Answer rating: 100% (QA)

To calculate the goodwill of the company we need to follo... View the full answer