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Which is not true about the abnormal earnings approach

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Reference no: EM132893277

Problem 1: Which of the following is not true about the abnormal earnings approach when determining a company's future earnings

Group of answer choices

Option 1: determined by the resources (net assets) available to management

Option 2: takes into account a cost for the capital (net assets) provided by the owners of the business

Option 3: determined by the current cash flows only

Option 4: determined by the rate of return or profitability earned on those net assets

Reference no: EM132893277

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