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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10-Q is a report filed quarterly to the Securities and Exchange Commission (SEC) by most reporting companies. It includes unaudited financial statements and provides a continuing view of the companys financial position during the year. The report must be filed for each of the first three fiscal quarters of the companys fiscal year and is due within 45 days of the close of the quarter.

ACCOUNTING RATIO is the result of dividing one financial statement item by another. Ratios help analysts interpret financial statements by focusing on specific relationships.

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