The Practical Applications Of Income Law In Assessing The Value Of Huangyangba Power Station

As is well known,the target of company's financial management is to maximize its value as possible as it can.In theory,it is uniform and has a reasonable proportion as well between its internal value and its external valuation for a company.But in fact,it is difficult to know actual value of a internal enterprise for a investor. With the reform of economic system and the entering of WTO ,enterprise property rights transaction such as in share holding system reform,merge and acquisition will become more widely and international.As the main important method in the evaluation of enterprise,discounted cash flow method will play a more and more important role in the enterprise property rights traction.The paper analyzes the reasonability of income while evaluating enterprise's value through several kinds of methods. According to the Huangyangba power plant's present condition with foreground,paper take ues of income -based approach to estimate the valuation of Huangyangba power plant and analyzes the reasonability of income while evaluating enterprise's value.The article clarify how to define property scope and how to acquire parameter of income .Taking Huangyangba power plant as an example ,the paper show us some concrete operation methods and study some questions of the practical applications ,such as how to define asset scope and how to adjust statement and how to match parameter etc. .The paper strives to confirm the effectiveness of income-based approach in assessing the value of company.In this article,the author hope to offer a way of thinking and feasible methods for other valuation item.