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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FOREIGN SALES AGENT or REPRESENTATIVE is an entity that works to sell your merchandise in a foreign country. Equivalent to the 'Manufacturers Representative' in the U.S.

SCOPE PARAGRAPH, in accounting, is the paragraph in the audit report that explains the scope of the engagement.

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