DISCOUNTED EARNINGS Definition

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DISCOUNTED EARNINGS determines the value of a business based upon the present value of projected future earnings, discounted by the required rate of return (capitalization rate). Usually, the question is how well earnings are projected.

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Z as the fifth letter of a Nasdaq stock symbol indicates that the listing is a fifth class of preferred, a stub, a limited partnership interest, second class of warrants, or foreign preferred upon issuance.

ACCOUNTING ENTITY ASSUMPTION states that a business is a separate legal entity from the owner. In the accounts the business' monetary transactions are recorded only.

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