The Discounted Future Earnings Approach to Valuing an Existing Business

question 94

True/False

The discounted future earnings approach to valuing an existing business involves estimating the company's net income for several years into the future and then discounting those future earnings back to their present value.

Understand the components and structure of master budgets.

Calculate cash collections from credit sales.

Determine the cost of goods sold and merchandise purchases.

Calculate expected cash disbursements.