question archive Q1) You are required to value the goodwill of the following business: Sales Analysis discloses a year purchase figure of 2
Q1) You are required to value the goodwill of the following business: Sales Analysis discloses a year purchase figure of 2
Subject:AccountingPrice: Bought3
Q1) You are required to value the goodwill of the following business:
Sales Analysis discloses a year purchase figure of 2.5 years
Value of the net tangible assests is $160,000
The return on the value of the net tangible assests is 14% per annum
Average net profit based on previous trading, after allowing for all wagers and remuneration is $29,000 per annum
Answer
Net profit $29,000
Less NTA @ 14% $22,400
Annual Super Profit 6,600
$6,600 x 2.5 Y.P = 16,500
In this question how to calculate NTA years @ 14% ? and what is meaning of @?
Q2
Super profits are determined as described in detail in previous example super profit $120,000
These super profits are expected to continue for a period of 5 years
Assessment of the risk disclosed by analysis & research of this type business is at 11%
Use figures for present value of $1 dollar per annum pv of $1.p.a for 5 years @11% = 3.69590
12000*3.69590 =$44350
Use figures for present value of $1 dollar per annum pv of $1.p.a for 5 years @11% = 3.69590
In this sentece what does the meaning of 5 year@11% and how to calculate it?
Please show me the formula or process of 5 year@11%
