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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 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%
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