Which of the following statements regarding business valuation methods is NOT correct?

a.

With the earnings multiple method, the multiple for an established business with sustainable profits might be 6.

b.

The asset valuation method ignores goodwill.

c.

With the earnings multiple method, the business earnings after income tax is multiplied by the selected multiple.

d.

With the earnings multiple method, the multiple for a service-based business might be 0.5.