Calculate value of goodwill under annuity of super profits

Assignment Help Accounting Basics
Reference no: EM132203474

Question - Calculate the value of goodwill under annuity of super profits, from the following information:

a) Net profit for the last five years : Rs.40,000 ; Rs.42,000 ; Rs.45,000 ; Rs.46,000 and Rs.47,000.

b) Capital employed in the business Rs.4,00,000.

c) Reasonable rate of expected returns on capital - 10%.

d) Present value of annuity of one rupee for five years at 10 percent interest as Rs.3.78.

Reference no: EM132203474

Questions Cloud

Effect of family control on corporate performance : The objective of this work is to analyze whether family controlled companies are more profitable than non-family firms.
Terms of the rules for definition by genus and difference : INSTRUCTIONS Criticize the following in terms of the rules for definition by genus and difference.
Effect those differences have on business relationships : Explain some of the differences in information systems in other countries and the effect those differences have on business relationships.
Components of career development planning program : You will recommend the components of career development planning program and explain how the plan will integrate organization’s mission and value statements
Calculate value of goodwill under annuity of super profits : Calculate the value of goodwill under annuity of super profits, from the following information: Capital employed in the business Rs.4,00,000
How will you go about identifying your competitors : how will you go about identifying your competitors, assessing their strengths and weaknesses,
Prepare journal entries for cullumber company transactions : Cullumber Company had these transactions during the current period. Prepare the journal entries for the Cullumber Company transactions
How are diverse dynamics of ethics in organization reflected : Summarize the case, and describe the participants. How are diverse dynamics of ethics in the organization reflected in this case study?
Explain the success of the hubby hubby campaign : How do social exchange theory and social learning theory help explain the success of the “Hubby Hubby” campaign?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd