Which model requires the discounting of the company's future owner earnings which are standard reported earnings after tax plus non- cash charges less the amount of expenditure on plant, machinery, and working capital needed for the firm to maintain its long- term competitive position and its unit volume, and to make investment in all new value- creating projects?

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Quizplus · Accepted Answer

The model described in the question is the owner earnings model, which requires the discounting of the company's future owner earnings. The other options mentioned, controlled earnings model, historical price to earnings model, and discounted income model, do not involve the same calculations as the owner earnings model.

Which Model Requires the Discounting of the Company's Future Owner