单词 | capitalization of earnings |
释义 | capitalization of earningsDefinition An estimate of earnings. It finds future earnings by dividing the future earning by the capitalization rate. This method considers the risk of earnings that cease or are lower than estimated. For example, a 1 million dollar business is expected to grow by 5 percent (plus 2 percent inflation) the annual rate of return is 25 percent. The earnings estimate is 5.5 million. |
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