CVA Exam Dumps | "When earnings have once been "realized", so that they can be expressed with some approach to accuracy

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Question 58/251

"When earnings have once been "realized", so that they can be expressed with some approach to accuracy in the company's accounts, they are already water under the mill and have no direct bearing on what the property in question is now worth. Value, under any plausible theory of capitalized earning power is necessarily forward looking. It is an expression of the advantage that an owner of the property may expect to secure from the ownership in the future. The past earnings are therefore beside the point, save as a possible index of future earnings". This statement correctly expresses:

A. Prophesied gross and net earnings

B. Realized earnings

C. Enterprise value

D. Realized earning verses prospective earnings

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 58/251

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