Income Method (Value = Expected annual benefit stream/Required rate of return) by estimating your free cash flow and capitalization rate (Discount rate - Growth) (Use the following assumptions in your calculations) i. The calculation will be for 100% of the business for a valuation date of 05/31/2018 ii. Assume the replacement salary and benefits for a manager to do the work of the owner would be $100,000 iii. Assume the tax rate is 21% iv. Assume there is average risk for the Company-Specific Risks

Answer rating: 100% (QA)

To calculate the value of the business using the Income Method well need to estimate the free cash flow and determine the capitalization rate Heres ho... View the full answer