Which of the following methods involves the development of a proxy benefit?
A) net asset value method
B) guideline transaction method
C) capitalization of earnings method
D) dividend payout method

Question

Quizplus · Accepted Answer

The capitalization of earnings method involves the development of a proxy benefit by capitalizing the company's future earnings and projecting them into perpetuity. This proxy benefit serves as an estimate of the company's value.

Which of the Following Methods Involves the Development of a Proxy