CVA Exam Dumps | "Market value is the most probable price which a property should bring in a completive and open market

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Question 11/251

"Market value is the most probable price which a property should bring in a completive and open market under all conditions requisite to fair sale the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus." Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions/s whereby:

A. Buyer and seller are typically motivated

B. Differences in financing costs and tax status

C. Both parties are well informed or well advised and acting in what they consider their best interests

D. A reasonable time is allowed for exposure in the open market

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...; Question 14: A control owner or potential owner might make control adjust...; Question 15: It is highly unlikely, in formula approaches for setting the...; Question 16: The coverage of fixed charges is a more inclusive ratio than...; Question 17: As with any secondary sources, errors and inconsistencies oc...; Question 18: When the valuation subject is a controlling ownership intere...; Question 19: If the interest rate on a term contract is below the market ...; Question 20: There is no universally accepted conclusion as to what accou...; Question 21: Some companies' articles of incorporation have provisions th...; Question 22: For valuation purposes, the measurement of economic income t...; Question 23: The IRC limits an individual taxpayer's charitable deduction...; Question 24: One way is to compare the historical percentage of bad debt ...; Question 25: If one assumes that the business will continue indefinitely ...; Question 26: When specifying, who is to provide the valuation services, t...; 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. Yield capitalization These above...; Question 122: (1) Partly because of its fairly wide dissemination (2) Part...; Question 123: A unique feature of Merger stat/Shannon Pratt's control prem...; Question 124: Which one of the following is perhaps the most valuable sour...; Question 125: The value of an asset is the present value of its expected r...; Question 126: The analyst should compare the backlog on the valuation date...; Question 127: About half the state and many individual companies have stat...; Question 128: If the funding of the forgoing requirements has been provide...; Question 129: Since the use of the extraordinary designation is so restric...; Question 130: A general category of taxable events relates to the amount o...; Question 131: The advantages of having a formal, independent outside appra...; Question 132: Automatic reliance on industry rates such as the return on t...; Question 133: The advantages of searching online valuation information inc...; Question 134: Basic ways of approaching the valuation of non-controlling o...; Question 135: One unique aspect of the valuation provision in a Bu-Sell ag...; Question 136: A valuation of the assets can even be important in _________...; Question 137: When using the elements of both the asset accumulation metho...; Question 138: Beta is a factor used to measure:...; Question 139: The capital stock of a corporation, its net assets and its s...; Question 140: 1. Pratt's stats 2. Done deal 3. Bizcomps 4. IBA market data...; Question 141: Estate taxes become a problem only to the extent that:...; Question 142: The business's capital requirements play a part in the valua...; Question 143: The assumptions underlying the capital asset pricing model a...; Question 144: When preparing a business valuation for reorganization proce...; Question 145: The Black-Scholes model assumes near perfect markets for bot...; Question 146: The first step in the valuation process, after carefully def...; Question 147: Recapitalizations involving debt securities may be undertake...; Question 148: The income capitalization approach is based on the economic ...; Question 149: Which of the following is the primary disadvantage of the as...; Question 150: "The amount at which property would change hands between a w...; Question 151: The instances and factors contributing to in adequate valuat...; Question 152: In ________cases, the valuation date itself is an issue to b...; Question 153: Because of the advanced features (protected by the several p...; Question 154: The purpose/s of requesting financial information, in the va...; Question 155: There is no set of number guideline companies to use. Howeve...; Question 156: The marital estate comes into being upon filing for divorce....; Question 157: Factors affecting the value of preferred stock are all of th...; Question 158: Most of the mechanisms for setting prices in buy-sell agreem...; Question 159: _____________ proclaims that if valuing a company by the ass...; Question 160: Market evidence indicated that adjustable-rate preferred sto...; Question 161: According to the American institute of Certified Public Acco...; Question 162: 1. Obtain or develop a cost-basis balance sheet 2. Determine...; Question 163: Qualitative factors might also cause the required yield to b...; Question 164: As with many matters related to marital dissolution valuatio...; Question 165: ____________ is a specialized classification of intangible a...; Question 166: The capital asset pricing model is part of a larger body of ...; Question 167: The amount of detail desired in the inventory list varies fr...; Question 168: No deduction is allowed for any charitable contribution of _...; Question 169: ____________ is perhaps the most difficult task for the busi...; Question 170: The accountant express limited assurance in _____________ th...; Question 171: Bishop and Schroeder make the point that lack of marketabili...; Question 172: 1 1- _____________ 1+ premium This is a formula for:...; Question 173: Valuation of ___________must be specified. For example, the ...; Question 174: If a $1000 per share value of convertible bond is issued for...; Question 175: The cost approach provides a systematic framework for estima...; Question 176: Which of the following is NOT the advantage of leasing to th...; Question 177: Valuation reports should contain a set of limiting condition...; Question 178: When is the guideline merged and acquired company method mos...; Question 179: Asset accumulation method can quickly quantify the effects o...; Question 180: In case of valuation of family law courts, in fact, courts o...; Question 181: A single rule of thumb that, for example, a satisfactory rat...; Question 182: If a $1000 per share value of convertible bond is issued for...; Question 183: It is possible (although not very common) for a security to ...; Question 184: The general purpose of __________________ is to aid in makin...; Question 185: 1. Dissenting stockholder actions. 2. Minority oppression ac...; Question 186: The rate of interest that, when applied to the expected futu...; Question 187: Normally, the business will realize the economic benefit of ...; Question 188: The valuation opinion repot will typically include the follo...; Question 189: When asking for historical financial statements on the subje...; Question 190: The most appropriate application of the excess earnings meth...; Question 191: A common first step in ratio analysis of financial statement...; Question 192: To get an explanation or interpretation of something on the ...; Question 193: The analyst should be curious about the proprietary products...; Question 194: One way or the other, the financial benefits of ownership of...; Question 195: In general, the use of life insurance can fulfill all of the...; Question 196: An item that frequently causes controversy in a business val...; Question 197: Which one of the following is/are example/s of normalizing a...; Question 198: The sales comparison approach is based on the economic princ...; Question 199: Fisher Black developed a technique to value American stock o...; Question 200: Virtually, all businesses or interests in businesses may be ...; Question 201: Continuing the above example, if earnings were $30,000, earn...; Question 202: Appraisers or real estate, equipment, or other physical prop...; Question 203: ____________ indicates that the collective going-on concern ...; Question 204: "Fair value" means the value of the corporation's shares det...; Question 205: Control transaction valuation multiples (often called deal m...; Question 206: All of the various tangible personal property valuation meth...; Question 207: Options can be very complicated. For example, some options h...; Question 208: An intangible's deficiencies are considered curable when the...; Question 209: Control shares are normally more valuable than minority shar...; Question 210: If there are five directors to be elected, and 500 shares ar...; Question 211: In the direct capitalization economic income method, the val...; Question 212: Any Buy-Sell agreement, restrictions, or other similar facto...; Question 213: Which of the following assumption is a base for the process ...; Question 214: There are many subtitles to the application of fair value fo...; Question 215: There's a tendency for the market for the businesses to chan...; Question 216: _____________________ is the uncertainty of future returns r...; Question 217: Income that is eventually derived from the qualified stock o...; Question 218: ____________________ are defined as the sum of the market va...; Question 219: Financial risk is measured in the following ways EXCEPT:...; Question 220: Situations commonly requiring the valuation of option are al...; Question 221: The fundamental of CAPM is:; Question 222: The normalized economic income is capitalized, typically, as...; Question 223: One of the most important tools for conducting a business va...; Question 224: When there is a choice among accounting practices, private c...; Question 225: ___________ may apply to publicly traded stock where the siz...; Question 226: Calculating the volatility of the underlying stock is more c...; Question 227: One of the most controversial and unsettled issues in busine...; Question 228: _____________________ list can yield insight into the compan...; Question 229: A seller who does not own a security (a short seller) will s...; Question 230: _____________________ applies option pricing methods to valu...; Question 231: "In computing the book value per share of stock, assets of t...; Question 232: Which of the following factor/s is/are most important for th...; Question 233: Unfortunately, the term enterprise value is used, at best, v...; Question 234: The analyst should try to gain an understanding of how the c...; Question 235: A series of small stock premium studies have been developed ...; Question 236: The state of the art in the twenty-first century involves in...; Question 237: Several factors influence __________________, particularly: ...; Question 238: The analyst should keep in mind that (1) if earnings are adj...; Question 239: Which of the following factors is NOT considered, among othe...; Question 240: Accepted business valuation approaches and methods are all o...; Question 241: Most analysts agree that one of the most important factors i...; Question 242: The remainder interest is valued:...; Question 243: Which of the following is NOT a common category of intangibl...; Question 244: When it comes to related party transactions, it is important...; Question 245: Statutory law Case law Administrative rulings Company docume...; Question 246: Which one of the following is NOT always clearly defined? Th...; Question 247: There is a general consensus among appraisers that there is ...; Question 248: Under the asset approach, the value of the corporation's inv...; Question 249: The FASB says that, for "unobservable inputs," the valuation...; Question 250: Below is a partial listing of possible scenarios in_________...; Question 251: The special characteristics of the preferred stock that we t...

Question 11/251

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