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    Business
  3. Study Set
    Financial Accounting
  4. Exam
    Exam 6: Valuation and Calculation of Goodwill
  5. Question
    The Total Capital Employed in the Company Is ?8,00,000 a Reasonable
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The Total Capital Employed in the Company Is ?8,00,000 a Reasonable

Question 3

Question 3

Multiple Choice

The total capital employed in the company is ?8,00,000 a reasonable rate of return is 15%and the profit of the year is 412,00,000. The value of goodwill of the company as per thecapitalization method will be


A) 82,00,000
B) 1200000
C) 7200000
D) 4200000

Correct Answer:

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