Under the capitalized earnings approach to valuing an existing business, most normal-risk businesses use a rate-of-return factor ranging from 20 to 25 percent.

Name: Under the capitalized earnings approach to valuing an existing business, most normal-risk businesses use a rate-of-return factor ranging from 20 to 25 percent.
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The capitalized earnings approach to valuing an existing business uses a rate-of-return factor ranging from 20 to 25 percent for most normal-risk businesses.

Under the Capitalized Earnings Approach to Valuing an Existing Business