The excess of estimated future profit than the normal profit in the case of goodwill valuation is:
Super Profit is the excess of estimated future profit over normal profit. Normal profit represents the expected return on capital employed, and the excess can be used in…
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The excess of estimated future profit than the normal profit in the case of goodwill valuation is:
Answer and explanation
Correct answer D
Super Profit is the excess of estimated future profit over normal profit. Normal profit represents the expected return on capital employed, and the excess can be used in valuing goodwill.
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Kerala SET (LBS Centre)