Define capitalization and explain its two components.
Answer to relevant QuestionsCompare and contrast the weighted average and simple average methods of converting historical earnings data to a single proxy benefit.Describe the asset approach and explain when it is an appropriate selection.What types of information might a forensic accountant need to perform a business valuation?1. If prospective data are not provided by the management of a company being valued, such data should be estimated by the forensic accountant. a. Trueb. False 2. Historical data are preferable to prospective data for each of ...At the end of 2012, Tootsie Roll had a price- earnings ratio of 30.7, and Hershey had a price- earnings ratio of 25.3. These convert to capitalization rates of 3.25% for Tootsie Roll and 3.95% for Hershey. Given that the 30- ...
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