question archive Sally's Bar and Grill is available for purchase
Sally's Bar and Grill is available for purchase
Subject:ManagementPrice: Bought3
Sally's Bar and Grill is available for purchase. Sally's earnings for the past five years were as follows)
Last year, $50,000
Two years ago, $60,000
Three years ago, $30,000
Four years ago, $40,000
Five years ago, $25,000
Determine the value of the business, using the following methods (use current bank interest rates) and both general and weighted averaging methods:
a)Capitalized earnings formula
b) Times earnings method
