EXCESS EARNINGS METHOD Definition

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EXCESS EARNINGS METHOD is a specific way of determining a value indication of a business, business ownership interest, or security determined as the sum of a) the value of the assets obtained by capitalizing excess earnings and b) the value of the selected asset base. Also frequently used to value intangible assets.

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SUBSIDIARY is a company whose voting stock is more that 50% owned by another company.

TRADE DEBTORS represent amounts of money owed by customers who have purchased goods/services from the company.

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