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6. Herbert, Inc. expects to generate earnings over the next five years of Php50,000.00; Php60,000.00; Php65,000.00; Php70,000.00 and Php75,000.00. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 8.00% required rate of return? a. Php 600,000.00 b. Php 800,000.00 C. Php 500.000.00

6. Herbert, Inc. expects to generate earnings over the next five years of Php50,000.00; Php60,000.00; Php65,000.00; Php70,000.00 and Php75,000.00. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 8.00% required rate of return? a. Php 600,000.00 b. Php 800,000.00 C. Php 500.000.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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6. Herbert, Inc. expects to generate earnings over the next five years of Php50,000.00; Php60,000.00; Php65,000.00; Php70,000.00 and Php75,000.00. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 8.00% required rate of return? a. Php 600,000.00 b. Php 800,000.00 c. Php 500,000.00 d. Php 700,000.00
Transcribed Image Text:6. Herbert, Inc. expects to generate earnings over the next five years of Php50,000.00; Php60,000.00; Php65,000.00; Php70,000.00 and Php75,000.00. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 8.00% required rate of return? a. Php 600,000.00 b. Php 800,000.00 c. Php 500,000.00 d. Php 700,000.00
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