Dipl. Treuhandexperte TREX HFP Practice Questions - Diplomierte R Treuhandexpertin Treuhandexperte Mit Eidgenössischem Diplom (TREX) Exam

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In Swiss SME business valuation for fiduciary succession planning, the 'Swiss Practitioners' Method' (Schweizer Praktikermethode) weights Capitalized Earnings Value (Ertragswert / EW) and Net Asset / Substance Value (Substanzwert / SW) in a 2:1 ratio. What is the fundamental rationale for incorporating Substance Value alongside Capitalized Earnings?

Substance Value reflects the replacement capital required to replicate the operating asset base and provides a tangible valuation floor/anchor against volatile or unrepresentative profit fluctuations in private owner-managed enterprises Substance Value is required because Swiss tax law prohibits using discounted cash flows under all circumstances Substance Value guarantees that the company will never go bankrupt Substance Value reflects only the market price of company vehicles

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