Summary QuestionRiego Steel Corporation's value based on the capitalization of earnings method is

Riego Steel Corporation's value based on the capitalizationQuestionRiego Steel Corporation's value based on the capitalization of earnings method is P4,271,604Answer & ExplanationTo understand how Riego Steel Corporation's value is determined using the capitalization of earnings method, let's break down the process:Capitalization of Earnings MethodThis method involves valuing a company based on its expected future earnings and a capitalization rate. The formula used is:[ text{Value} = frac{text{Earnings}}{text{Capitalization Rate}} ]Where:Earnings are typically the net income or some adjusted measure of profitability.Capitalization Rate (Cap Rate) is the required rate of return for an investor, often derived from comparable investments or industry standards.Given InformationThe value calculated using this method for Riego Steel Corporation is P4,271,604. However, to fully understand this valuation, we need either:1.The company's annu