Three methods of valuation of goodwill?
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There are several methods which can be implemented for valuation of goodwill which is as follows:
Average Profit Method. Goodwill's value in this method is considered by multiplying the Average Future profit by a certain number of year's purchase. ...
- Super Profit Method:
- Capitalization Method: ...
- Average Method:...
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Explanation:
There are several methods which can be implemented for valuation of goodwill which is as follows:
Average Profit Method. Goodwill's value in this method is considered by multiplying the Average Future profit by a certain number of year's purchase.
Super Profit Method.
Capitalization Method.
Annuity Method.
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