Which appraisal method is recommended for businesses

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Qaz Limited has total assets of $400,000 and shareholders' equity of $240,000. An analyst's report for the company states that the return on assets is 11%, the operating profit margin is 40%, and the net profit margin is 5%. Calculate the annual sales revenue for Qaz Limited.

Problem 1: Which appraisal method is recommended for businesses where the goal of management is to maximise the wealth of owners? Justify your answer, and also discuss the other advantages of this method over the other methods covered in this subject.

Reference no: EM132961094

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