"From the following information calculate Capitalised value of the firm-
Normal Rate of Return - 12%
Profits for last three years- i. 80,000 ( including gain on the sale of fixed assets of Rs 30,000) ii. 1,50,000 iii. 2,00,000 (including a loss by theft of Rs 32,000)." |
12,00,000
17,280
1,44,000
11,00,000
|
12,00,000 |
"A.P = (80,000- 30,000) + 1,50,000 + ( 2,00,000+32,000)/3 = 4,32,000/3 = 1,44,000 Capitalised Value = AP * 100 / NRR = 1,44,000 * 100/12 = 12,00,000 " |