Multiple Choice Questions on Average profit of a firm is Rs 4 000 and current rate of return is 8 then real value of business wil........... for Punjab Government (Allied) Exams Preparation

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Multiple Choice Questions

Average profit of a firm is Rs 4 000 and current rate of return is 8 then real value of business wil...........

Finance( Revenue Account ) Cost of capital
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    Average profit of a firm is Rs. 4,000 and current rate of return is 8% then real value of business will be:

     

     Rs. 50,000 

     

    Correct Answer

    Rs. 32,000

     

    Incorrect Answer

    Rs. 3,200

     

    Incorrect Answer

    Rs. 5,000

     

    Incorrect Answer
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    Explanation:

    Real Value of a business= Average annual Net Profit/Rate of Return = 4000/.08 = 50,000/-

    By: Vikas Goyal
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