In the earning value approach of valuation of business, past earnings of the business, after some adjustments, multiplied by a capitalization factor. This capitalization factor is calculated on the basis of the _________

CS Executive · Corporate and Management Accounting · PYQS · December 2023
In the earning value approach of valuation of business, past earnings of the business, after some adjustments, multiplied by a capitalization factor. This capitalization factor is calculated on the basis of the __________ rate of return on investments.
(A) Minimum
(B) Maximum
(C) Standard
(D) Expected

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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