Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have decided to use the Capitalization of Excess Earnings method to value a small Veterinarian office, and you have asked the Veterinarian to assist

image text in transcribed

You have decided to use the Capitalization of Excess Earnings method to value a small Veterinarian office, and you have asked the Veterinarian to assist you in determining what is important to her clientele. She said about 50% of her business is due to the strong interpersonal relationship she has with her clients, and the other 50% is due to the great staff she employees. What Goodwill capitalization rate would you use when employing the Capitalization of Excess Earnings method to value the business. 30.0% 27,5% 42.5% 55.0% You have decided to use the Capitalization of Excess Earnings method to value a small Veterinarian office, and you have asked the Veterinarian to assist you in determining what is important to her clientele. She said about 50% of her business is due to the strong interpersonal relationship she has with her clients, and the other 50% is due to the great staff she employees. What Goodwill capitalization rate would you use when employing the Capitalization of Excess Earnings method to value the business. 30.0% 27,5% 42.5% 55.0%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Management

Authors: Glen Arnold

4th Edition

0273719068, 978-0273719069

More Books

Students also viewed these Finance questions

Question

What, if any, financial support do they provide their students?

Answered: 1 week ago