Describe the Earnings Approach for Valuing a Company,outlining the Calculation

question 20

Essay

Describe the earnings approach for valuing a company,outlining the calculation and the strengths and weaknesses of this technique.

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Definitions:

Ethical Climates

The moral atmosphere of the work environment and the level of ethics practiced within a company.

Socially Responsible

A principle or practice whereby individuals or businesses make decisions and take actions that positively impact society, the environment, and the economy.

Ethical Standpoint

A perspective or approach to decision-making that considers moral principles and values.

Quarterly Profit Statement

A financial report issued by a company every three months that provides information about its revenue, expenses, and net profit during the quarter.