What is the premium for the pass-through entity

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Reference no: EM133335890

Question: You are asked to value an S corporation that had a before-tax income of $100,000, with a tax rate of 40 percent. Calculate the value using the IRS's approach and the non-IRS approach and assume a capitalization rate of 20 percent. What is the premium for the pass-through entity?

Reference no: EM133335890

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