CVA Exam Dumps | It is advisable to emphasize that in the valuation of the stock of closely held corporations or the stock

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Question 30/251

It is advisable to emphasize that in the valuation of the stock of closely held corporations or the stock of corporations where market quotations are either lacking or too scarce to be recognized, all available financial data, as well as all relevant factors affecting the market value should be considered. The following factors, although not all-inclusive are fundamental and require careful analysis in each case EXCEPT:

A. The nature of the business and the history of the enterprise from its inception

B. The income-tax paying capacity of the company

C. The economic outlook in general and the condition and outlook of the specific industry in particular

D. The earning capacity of the company

Question List (251q): Question 1: Which of the following agreements often restrict the marketa...; 2 commentQuestion 2: The second step in capitalized excess earnings method is:...; Question 3: Various transactional and taxation events may occur that cha...; Question 4: _________________ is computed by reverse re-engineering the ...; Question 5: The advantages of the binomial model over the Black-Scholes ...; Question 6: The analyst used __________ to quantify the value of intangi...; Question 7: Analysts should consider each of the following measure when ...; Question 8: Let's say that a company had 100,000 shares outstanding at t...; Question 9: The Build-Up model divides the risk premium into its subcomp...; Question 10: In merger market valuation models:...; Question 11: "Market value is the most probable price which a property sh...; Question 12: In setting the interest rate in Buy-Sell agreement, we face ...; Question 13: In many instances, value considerations are tempered by inte...; 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Question 27: Most typically, a company, or some or all of its stock, is t...; Question 28: The definition of specific business interest can be broken d...; Question 29: Which of the following is/are NOT out of components of the d...; Question 30: It is advisable to emphasize that in the valuation of the st...; Question 31: Marital dissolution cases in jurisdiction where personal rat...; Question 32: The United State is by far the world leader in markets for b...; Question 33: "Tag along rights" are Buy-Sell agreements which:...; Question 34: Once in a while, someone perhaps a broker trying to sell a b...; Question 35: Fair market value is defined as the price at which the prope...; Question 36: Impairment is the difference in value between the carrying a...; Question 37: One consideration in the choice between the cross purchase v...; Question 38: The most common forms of redemption provisions found in priv...; Question 39: Proprietary technology is also counted in intangibles such a...; Question 40: Which of the following attribute should be there for an inta...; Question 41: Most companies carry accounts receivable and deduct some all...; Question 42: S corporations, limited liability corporations, limited liab...; Question 43: Which of the following ratios demonstrate the company's abil...; Question 44: Regulated companies usually are regulated because they have ...; Question 45: In comparing companies with very different accounting practi...; Question 46: Depletion is relatively easy to define; it is very difficult...; Question 47: The most typical procedure/s in capitalized earning method i...; Question 48: Stockholders' privilege to subscribe to new issues of voting...; Question 49: The most common interpretation of net tangible asset value i...; Question 50: In creating employee stock options, the issuing company usua...; Question 51: The primary ownership interest characteristics that need to ...; Question 52: With respect to the contents, _____________ must include: 1....; Question 53: Three levels are identified by ____________ in the hierarchy...; Question 54: It is the collective revaluation of all of the company's ass...; Question 55: The determination of which asset-based method to use in a gi...; Question 56: Which of the following is NOT out of standard categories of ...; Question 57: Which of the following is NOT out of the call option's value...; Question 58: "When earnings have once been "realized", so that they can b...; Question 59: The application of any discounts should always be taken in t...; Question 60: A major issue in many fair value cases is:...; Question 61: If the seller is in a low tax bracket and the buyer in a hig...; Question 62: Which of the following are categories in which projections a...; Question 63: Valuation analysts prefer to work with audited financial sta...; Question 64: In most business valuations, the opinion of value will be ba...; Question 65: An analysis of fixed and variable expenses will help the ana...; Question 66: If the language of the relevant agreements indicates that mi...; Question 67: _____________ is the method that produces the largest, quick...; Question 68: Fair value is:; Question 69: The fundamental risk measures and their correlation coeffici...; Question 70: FLPs (Family limited partnership) may help an owner maintain...; Question 71: The use of asset-based approach should not be confused with ...; Question 72: The basic valuation model, which is central to the income ap...; Question 73: The purpose of Erickson and Wang study was to empirically qu...; Question 74: Family law courts generally recognize three basic approaches...; Question 75: The most prevalent measure for assessing the likelihood of r...; Question 76: The practical effect/s of Special Valuation Rules is/ are:...; Question 77: There is an additional ____________ valuation rule, which re...; Question 78: Capital expenditures are a specific component in the discoun...; Question 79: In measuring the business risk, for many companies, sales vo...; Question 80: Documentable, arm's-length, bona fide offers to buy or sell ...; Question 81: It is possible to examine the uncertainty of income to the v...; Question 82: ____________ is the flip side of discounts, which can be add...; Question 83: The court's acceptance, rejection, or relative weight accord...; Question 84: An interesting form of debt security, known as _____________...; Question 85: In a marital dissolution the parties may be concerned with t...; Question 86: Some judicial circuits use a multifactor test to determine w...; Question 87: _________________ are excellent sources of statistical, anal...; Question 88: Buy-sell agreement in which issuing corporation or partnersh...; Question 89: The work-in-process inventory of a professional service firm...; Question 90: _________ is the value to some particular owner or potential...; Question 91: There are some allowable methods for determining the basis o...; Question 92: Due to these complexities, for practical purposes it is acce...; Question 93: Which of the following is NOT out of the characteristics tha...; Question 94: Buy-sell agreement may specify that the shares be valued str...; Question 95: Many cost items fall into a "___________", in which the deci...; Question 96: The same general processes and decision criteria apply to bo...; Question 97: Which of the following best suits in replacement to question...; Question 98: It is important to point out that _______________of the busi...; Question 99: The direction and magnitude of the company-specific risk pre...; Question 100: The purpose of risk analysis is to ascertain the uncertainty...; Question 101: __________________ in context of Delware block method means ...; Question 102: ____________________ is common stock received when the optio...; Question 103: Imagine that an investor in the common stock of a company ha...; Question 104: For example, in data collection process for conducting the r...; Question 105: "A takeover model became a significant explanatory variable ...; Question 106: The obvious disadvantage of the formal appraisal with regula...; Question 107: Based on the purpose and objective of the valuation, the ana...; Question 108: Life insurance can serve as an important source of funding f...; Question 109: If Paola Pizza Parlors stock started the year at $10 per sha...; Question 110: Supermajority vote requirements and state dissolution statue...; Question 111: 1. Dividends or partnership withdrawals (i.e. current econom...; Question 112: The primary impact on the value of a sinking fund preferred ...; Question 113: The market approach, income approach, and asset approach, or...; Question 114: The most frequently encountered reasons for needing to value...; Question 115: The discount rate is a market-driven rate. It represents the...; Question 116: This is sometimes considered the accumulation of all other e...; Question 117: Discounts for contingent liabilities can cover a wide range ...; Question 118: Book value per share is based on the number of shares outsta...; Question 119: ______________ is defined as the sum of cash and cash equiva...; Question 120: There are some factors that determine whether the buy-sell a...; Question 121: 1. Direct capitalization 2. 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Question 30/251

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