The average annual profits of the company is Rs.
Illustration 7: Calculate the value of each Equity Share from the following information: C. Take into account the following information: i Goodwill to be taken at Rs.
The capital employed in the business is Rs.
We know, L. In case of a proprietorship business it will be valued at the time of disposal of business, in case of firm it may be calculated at the time of addition, resignation and disposal of firm.
You are asked to compute the value of each Equity share.