Question
Which one correctly shows the sequence of earnings capitalization process? forecast of I/S -> forecast of annual earnings for business life --> determination of the
Which one correctly shows the sequence of earnings capitalization process?
forecast of I/S -> forecast of annual earnings for business life --> determination of the cost of equity ---> Calculation of present value of future earnings.
determination of cost of equity -> forecast of annual earnings for business life --> forecast of I/S ---> Calculation of present value of future earnings.
Calculation of present value of future earnings--> determination of cost of equity -> forecast of annual earnings for business life --> forecast of I/S
determination of cost of equity -> forecast of annual earnings for business life -->Calculation of present value of future earnings --> forecast of I/S.
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