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This capital is called the capitalized value of average profits.
In order to use the the capitalization method, you must know both its formula as well as the methods to calculate the capital employed and the capitalized value of average or super profits.
Finally, goodwill is equal to capitalized value of profits minus the capital employed, or 500,000 − 400,000.
Learn how to calculate capitalized value of profits and the total of capital employed.
For debt as a percentage of capital we include both long-term debt and the capitalized value of leases.
"They lead to an unnecessary degree of cyclical volatility in earnings and, as such, to a reduced long-term capitalized value of the bank.
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The opponents of site-value taxation point out that the unearned increment in land value has been capitalized and question the fairness of imposing a heavy tax on present land values for which owners have paid in good faith.
Auto leasing agreements are festooned with arcane but essential terms like residual value and net capitalized cost that can be difficult to understand, especially if you are first becoming familiar with them the day you are supposed to drive your leased car off the lot.
"We believe the loan, which is backed by profitable, well-capitalized operating subsidiaries with substantial value, will protect all AIG policyholders, address rating agency concerns and give AIG the time necessary to conduct asset sales on an orderly basis," it said in a statement.
Including Virgin America's existing debt, as well as capitalized aircraft operating leases, the transaction value is about $4 billion, the two airlines said.
If the franchised and independent properties of AAHOA's membership were added up, they would represent a market value of around $38 billion, based on capitalized room values, says Mowji.
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