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The Method of Net Income A company's worth is determined via the Net Income Method using its net income and a capitalization rate. Using fictitious
The Method of Net Income A company's worth is determined via the Net Income Method using its net income and a capitalization rate. Using fictitious numbers Net Income Hypothesis: $6,000,000 10% is the capitalization rate. Value = Net Income / Capitalization Rate = 6,000 / 0.10 = 60,000 million USD
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Introduction To Management Accounting A User Perspective
Authors: Michael L Werner, Kumen H Jones
2nd Edition
0130327506, 9780130327505
