How is the capitalization of earnings method affected when the entity being valued has profits from business

Question:

How is the capitalization of earnings method affected when the entity being valued has profits from business operations and, in addition, income from passive investments (for example, interest income)?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Canadian Income Taxation 2018-2019

ISBN: 9781259464294

21st Edition

Authors: William Buckwold, Joan Kitunen

See More Books

Question Posted: Oct 02, 2019 10:34 AM

See More Questions

What is the capitalization of earnings method of valuing a business? Why is it that the value determined by this method may vary considerably between the purchaser and the vendor?
1. If prospective data are not provided by the management of a company being valued, such data should be estimated by the forensic accountant. a. True b. False 2. Historical data are preferable to...
Explain how the capitalization of earnings method takes into account the relative risk of the particular business being valued.
A website that reviews recent movies lists 6 five-star films (the highest rating), 17 four-star films, 14 three-star films, 9 two-star films, and 4 one-star films. Make a frequency table for the data...
Suppose you roll two octahedral (eight-sided) dice, numbered 1-8. a. Draw a diagram that shows all possible outcomes of this experiment. b. Indicate on your diagram all the possible outcomes for...
Who is a process owner?
Am I prepared to explain how I would like to make a contribution? LO.1
Pip Squeaks Inc. is a manufacturer of furnishings for infants and children. The company uses a job order cost system. Pip Squeaks Work in Process Inventory on April 30, 2010, consisted of the...
An example of an ethical code that requires manadatory compliance in order to engage in a particular licensed trade or practice is _____. A. the Ethical Code of the Society of Professional...
The store manager in a Department Store feels that her inventory levels of kitchen chimneys have been running higher than necessary. She feels the inventory policy needs to be reframed. Before that,...
Given that reported past profits reflect future expectations, why may it be necessary to revise those past profits for such items as owners compensation, occupancy costs (rent), interest costs,...
Why is it that the value of a specific business may vary from purchaser to purchaser, even though all prospective purchasers have the same degree of certainty with respect to the earnings potential...
The number of long term unemployed, defined as those out of work for more than 27 weeks, has been a detriment to the recent economic recovery. In 2013, 40% of the unemployed had been out of work for...
Find the explained variation for the paired data. The equation of the regression line for the paired data below is y = 5.18286 + 3.33937x. X 972 23 34 4 22 17 y 43 35 16 21 23 102 81
5. The vertical stress at a point is 28 kPa, while the horizontal stress is 14 kPa. shear stress on the horizontal plane is +4 kPa. The (a) Draw the Mohr's circle of stress and show the pole point...
I need assistance with the below questions for my HIM 5370 at texas State University Case Mix Table: 4. Complete the Case Mix table shown below. Calculate the case mix for each month. The table below...
The probability that a printing press will print a book with no errors is 78%. The company is about to process an order of 30 books. Round decimals to 3 places or percentages to 1 decimal place. 9....
alculate Product Costs, using JOB COSTING SYSTEM. Please SHOW CALCULATION. Dream Chocolate Company: Choosing a Costing System TABLE 1 Typical Prices and Costs of Chocolate 641 1.25 oz. Bar 3.0 oz....
Which actions would increase the liquid (acid test) ratio of a business in the short term? i. Trade receivables paying Their debts ii. Paying trade payables iii. Selling a number of surplus...
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
Duncan Bostock is a sole proprietor in his first year of operations. The following table summarizes his taxable supplies for the current year: (a) When is Duncan required to register for GST/HST? (b)...
Quality Quo is a Canadian-controlled private corporation carrying on business in Canada. For its year ended December 31, 2022, Quality Quo earned income from the following sources: Active business...
On March 1, 2022, Martin Torres received an interest-free loan from his employer, X Ltd., a private corporation, owned by his spouse. Martin used the loan to purchase the condominium in which he...
Estimate the intrinsic value of the stock company ABC. Dividends were just paid at $8 per share and are expected to grow by 5%. You require 20% on this stock given its volatile characteristics. If...
Crane, Inc., a resort management company, is refurbishing one of its hotels at a cost of $6,794,207. Management expects that this will lead to additional cash flows of $1,560,000 for the next six...
Match each of the following transactions with the applicable internal control principle that is being violated

How is the capitalization of earnings method affected when the entity being valued has profits from business

Question:

Step by Step Answer:

It is important to recognize that the valuation process may be affected when ...View the full answer

Canadian Income Taxation 2018-2019

Students also viewed these Business questions