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Five years ago, Tom Civil purchased land with a big old house for $ 2 0 0 , 0 0 0 ( the property )
Five years ago, Tom Civil purchased land with a big old house for $the property located in the
small town of Kinkville, Nova Scotia, and renovated and converted the old house and started a flower shop
business operating under the business name Civilized Floral Design
There are two other flower shops in town, but Toms business does well and in each of the past three years
has had an EBITDAie earnings before interest, taxes, depreciation, and amortization of $ per
year. The land he purchased now has a book value of $ but recently he had it appraised by a
qualifiedcertified real estate appraiser, and the valuation came in at $
Tom offers to sell the property and business as a going concern to Laura Rose for $ and Laura comes
to you, a Certified Business Valuator, for your quick opinion on this price. What do you think? Justify your answer.
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