Valuing small businesses: discounted cash flow, earnings capitalization and the cost of replacing capital assets.: An article from: Journal of Small Business Management

This digital document is an article from Journal of Small Business Management, published by International Council of Small Business on July 1, 1993. The length of the article is 4084 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The differences between the Discounted Cash Flow (DCF) method and the Earnings Capitalization (EC) method were studied. The most significant difference is the treatment of the cost of replacing capital assets, which cannot be justified under the earnings capitalization method. The suitability of the EC model on any situation depends on asset distribution of lives and ages and on expectations of inflation effects. The contention that the EC method is the same as the DCF method is thereby invalid.

Citation Details
Title: Valuing small businesses: discounted cash flow, earnings capitalization and the cost of replacing capital assets.
Author: Jeffrey W. Lippitt
Publication:Journal of Small Business Management (Refereed)
Date: July 1, 1993
Publisher: International Council of Small Business
Volume: v31 Issue: n3 Page: p52(10)

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