[plaee nsort to Ute lifra Ifcat m dw pmai of mtcteat hete.
Aiaoypfca ttneaad place theie is an aooqited
W-'tti^mrf n$e ol profite, more or k» dtjaeif
, vfaidi, it M felt, should aocrne to any
I Itf^tiOMte anr] ordinarily jodicious business vaituie.
Jhmttvt^ dhifty the definition of thia rate of
prtWitfi rnay be, in crjncrete, objective terms, it ia
felt by the men of affairs to be of so sabetantial
I anri conxist^mt a character that tbey habitually
I capitalize the property engaged in any given busi-
' ne«B venture on the basis of this ordinary rate of
1 profits. Due regard being had to any special
advantages and drawbacks of the individual case,
any given buainess venture or plant is capitalized
at such a multiple of its eaming-capacity as the
current ordinary rate of profits will warrant.'
1 Tbu fltatement applies irhh greater apttiess lo tlie buafneu ■IlUb' tioD of EDglud during tlie earlier thre^-qiurlere ol the nineteentb century, SDd Ut the American sltnallon of the tbird qnutw of tlM
BUSINESS PRINCIPLES 89