Business Co. is a CCPC with annual profits of $120,000. The corporate tax rate is 13%.
Required:
Calculate 1) the business value and 2) the earnings multiple if the capitalization rate is:
a) 30%
b) 20%
c) 10%

Question

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The Answer of Business Co. is a CCPC with annual profits of $120,000. The corporate tax rate is 13%.
Required:
Calculate 1) the business value and 2) the earnings multiple if the capitalization rate is:
a) 30%
b) 20%
c) 10%