Examlex
What are the major advantage and the major disadvantage of a regulatory method that stipulates that a natural monopoly charge a price equal to marginal cost?
Abnormal Earnings Approach
A method for valuing a company's worth based on the premise that stock prices are influenced by differences between the expected and actual earnings, adjusted for the cost of capital.
Equity Valuation
The process of determining the fair market value of a company's equity or shares.
Positive Abnormal Earnings
Earnings that exceed what is normally expected, based on historical trends or industry standards, often indicating superior performance.
Sustainable Earnings
Refers to the portion of a company's income considered to be predictable, repeatable, or likely to continue in the future.
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