Question
ABC, Inc., has net tangible assets of $1,000,000. ABC, Inc., expects a return of 12 percent on these assets. ABCs estimated future income is $1,200,000
ABC, Inc., has net tangible assets of $1,000,000. ABC, Inc., expects a return of 12 percent on these assets. ABCs estimated future income is $1,200,000 and the appraiser determined an appropriate capitalization rate of 30 percent. What is the total entity value using the excess earnings method?
| $3,333,333 |
| $3,600,000 |
| $4,000,000 |
| $4,600,000 |
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Advanced Quality Auditing An Auditors Review Of Risk Management Lean Improvement And Data Analysis
Authors: Lance B Coleman
1st Edition
163694082X, 978-1636940823
