fair market value

Tag: fair market value

Business Valuation Purposes

See Also: EBITDA Valuation Valuation Methods Multiple of Earnings Business valuation is the process of determining the economic value of a business or company. It assesses a variety of factors to determine the fair market value in a sale, but there is no one way to verify the worth of a company. Business valuation can

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Fair Market Value

See Also: Adjusted EBITDA Asset Market Value vs Asset Book Value Valuation Methods Goodwill Impairment Fair Market Value Definition The Fair Market Value definition is the price a specific property, asset, or business would be purchased for in a sale. A company’s fair market value should be an accurate appraisal of its worth. Calculating Fair

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Purchase Option

Purchase Option Definition Purchase option, defined as the opportunity to purchase a piece of property which is being leased after the lease is completed, is part of the many options available in a lease agreement. A purchase option is often agreed upon by the two parties involved before the contract is made. Purchase Option Explanation

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Financing Lease

See Also: The Dilemma of Financing a Start Up Company Lease Agreements Operating Lease Sale-and-Leaseback Lease Term Financing Lease Definition The financing lease definition, also known as a capital lease, is a method of deferred payment. If the lessee is willing to pay the additional cost of interest, then they can use a financing lease

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Asset Market Value vs Asset Book Value

See Also: Accounting Income vs Economic Income Economic Value Added Value Drivers:Building Reliable Systems to Sustain Growth Basis Definition Variance Analysis Goodwill Impairment Asset Market Value versus Asset Book Value Book value and market value are two ways to value an asset. An asset’s book value can differ from its market value. Market value is the

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Arm’s Length Transaction

See Also: Accounting Principles Accounting Concepts Point of Sale (POS) Method Working Capital From Real Estate Which Bank to Choose? Arm’s Length Transaction Definition An arm’s length transaction or the arm’s length principle is a transaction that takes place between two completely unrelated parties. An arm’s length transaction also implies that the final transfer of

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