Under the capitalized earnings approach to business valuation,firms with lower risk factors are more valuable than those with higher risk factors.

Name: Under the capitalized earnings approach to business valuation,firms with lower risk factors are more valuable than those with higher risk factors.
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Quizplus · Accepted Answer

This is because a lower risk factor implies more stable and predictable future earnings, which increases the certainty and reliability of projected earnings, leading to a higher value.

Under the Capitalized Earnings Approach to Business Valuation,firms with Lower