Arrange the following steps to calculate value of Goodwill by capital…

The correct answer is Option (4) → A, D, B, C

Under the capitalisation of super profits method, goodwill is the capitalised value of the profit the firm earns over and above the normal profit. The steps follow from that idea:

A. Calculate normal profit on capital employed — first. Normal profit is the return a similar business would earn on the same capital, so the capital employed (total assets other than goodwill and fictitious assets, less outside liabilities) and the normal rate of return are needed first.
D. Calculate actual profits on capital employed — second. The firm's own (average) profit is worked out from its past results.
B. Actual Profits - Normal Profits = Super Profit — third. Super profit can be found only after both profits are known.
C. Super profit × 100 / Normal rate of returns — last. Capitalising the super profit at the normal rate gives the value of goodwill.

Steps A and D do not depend on each other, but B needs both of them and C needs B, so the only order among the options is A, D, B, C — the same order in which the book lists the steps.