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The traditional technique isn't accurate because in the current industry, Houses have a large amount additional depreciation that doesn't go under consideration. The 2nd solution to consider the distinction between the ebook worth and the recognized worth is by considering the reduce proportion depreciation and the upper bills.
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Therefore, various lower price premiums needs to be calculated for different divisions according to the systematic possibility Every division faces, the debt to equity composition that is the financial threat Just about every division faces and using the discount rates which reflect the forex through which the division relies.
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