How is the capitalization rate of a particular business determined?

Question:

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 rate, and how does it relate to the discount rate?
Reconsider the valuation of the retail clothing chain presented in the previous problem. Use the following benefit stream information for this purpose. You have selected the capitalization of...
Suppose you have been engaged to value a retail clothing chain as of December 31, 2012. You have selected the capitalization of earnings method and determined that net cash flow is the appropriate...
Consider the following graph. 2 7 6 C 10 10 H 11 E 12 15 14 (a). Find a minimum spanning tree of the graph using Kruskal's algorithm. List the edges in the order they are put into the tree. (b)....
The local outlet of Frankfurter Franchise sells three types of hot dogs: plain, with chili, and veggie. The owners know that 47% of their sales are chili dogs, 36% are plain, and the rest are veggie....
Define OEE.
If the job interests me, will I have enough courage to indicate that I would accept an offer? LO.1
The Conference Board produces a Consumer Confidence Index (CCI) that reflects peoples feelings about general business conditions, employment opportunities, and their own income prospects. Some...
Why is a partnership agreement important? What are some components of a parternship agreement that help define the arrangements between partners? Also, what happens if a particular topic is not...
What are least-square fit and residual variance in sn enhancement, ensemble averaging and what do the numbers mean the residual value was very similar to each other for a different number of scan...
Explain how the capitalization of earnings method takes into account the relative risk of the particular business being valued.
Because a purchaser is acquiring a business that will earn future profits, the amount of profits earned in the past is not relevant to the valuation of the business. Is this statement true? Explain.
Baffin Manufacturing Company was concerned about a growing number of defective units being produced. At one time the company had the percentage of defective units down to fewer than 50 per 1,000, but...
1. what is the Signs of Malnutrition?
Example 5.1 Simply Supported Truss 8' B 2 kips Determine: a) Support reactions b) Internal force in each member Pin 5' D 4 kips 7' 6' Roller
Find the rank by reducing to normal form: 1 1 2 3 1 3 0 3 1 -2-3-31 1 12 3
A turtle can swim in a still pond at a speed of 0.76 m/s. The turtle is crossing a stream with 0.86 m/s current flowing to the East. The turtle is pointed downstream at an angle of 62 with respect to...
(10 pts) An aluminum "L" shaped bar (also known as "angle") and its cross-section are shown in the fol- lowing figure. Hand-calculate the centroid of the section and the moments inertia, Ir and Iy,...
In the books of a partnership, what should interest on drawings be debited to? A. The appropriation account B. The bank account C. The partners' current accounts D. The partners' drawings accounts
(a) Use integration by parts to show that (b) If f and g are inverse functions and f' is continuous, prove that (c) In the case where f and t are positive functions and b > a > 0, draw a diagram to...
What is a small supplier and what are the implications of losing small supplier status?
If a corporation is subject to a 27% tax rate, why may it be advantageous for it to issue debt as opposed to preferred shares?
A Ltd. and B Ltd. are partners in the Triple M partnership. A Ltd. and B Ltd. share equally in the income or loss of the partnership annually. The partnership earns business income of $100,000 and...
Mass LLp developed software that helps farmers to plow their fiels in a mannyue sthat precvents erosion and maimizes the effoctiveness of irrigation. Suny dale paid a licesnsing fee of $23000 for a...
Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $40,000 $50,000 Useful life...
4. (10 points) Valuation using Income Approach An appraiser appraises a food court and lounge and provides the following assessment: o O The building consists of 2 floors with the following (6)...

How is the capitalization rate of a particular business determined?

Question:

Step by Step Answer:

The capitalization rate reflects the degree of certainty of achieving future profits As fut...View the full answer

Canadian Income Taxation 2018-2019

Students also viewed these Business questions