What is a valuation account?
Plugging it back into the original equation, the percentage equals the cost of capital. You could then imagine that Tesla might have a cost of capital of 20 percent and a growth rate of 17.2 percent. In normal accounting, if a company purchases equipment or a building, it doesn’t record that transaction all at once. Amortization is the same as depreciation but for things like patents and intellectual property. When examining earnings, financial analysts don’t like to look at a…
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