A firm eamed average profit of OMR 80,000 during the last few years and the normal rate of return in a similar business is 10% The total assets are OMR 720,000 and outside liabilities are OMR 100,000. 1. Calculate the value of goodwill using Capitalization of Average profit method. OMR 180,000 None of the choices OMR 620,000 OMR 800,000 2. Calculate the value of net assets using Capitalization of Average profit method.

A firm eamed average profit of OMR 80,000 during the last few years and the normal rate of return in a similar business is 10% The total assets are OMR 720,000 and outside liabilities are OMR 100,000. 1. Calculate the value of goodwill using Capitalization of Average profit method. OMR 180,000 None of the choices OMR 620,000 OMR 800,000 2. Calculate the value of net assets using Capitalization of Average profit method.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 19PROB

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