SHAREHOLDER EQUITY — VALUING YOUR COMPANY
By
Stuart Margolis
and Brian Enverso
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b. Remember that EBITDA is earnings before interest, taxes, depreciation and amortization.
c. Earnings are the reported financial income plus or minus expenses and income that are peculiar to the present ownership, but will not exist for the subsequent company.
d. Now we can compute the capitalized value of EBITDA.
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