What Is the Rationale for Using Expected Earnings as a Basis

question 28

Essay

What is the rationale for using expected earnings as a basis for valuations?

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Definitions:

Multifaceted

Characterized by having many aspects or phases, often used to describe complex issues or problems that require consideration of multiple dimensions.

Nonspecific Compensation

a form of reimbursement or reward not tied to particular criteria or performance metrics.

Objectives

Specific, measurable goals that are intended to be achieved within a certain timeframe.

Firmer

Exhibiting increased stiffness, solidity, or determination.