Financial Accredited in Business Valuation (ABV) ABV Dumps in PDF

Free Financial ABV Real Questions (page: 58)

The primary impact on the value of a sinking fund preferred stock results from the fact that redemption creates a finite stream of income to the investor plus .

  1. A terminal value versus a theoretically infinite stream of income available to the non- sinking fund preferred stockholder.
  2. A negative value versus a theoretically infinite stream of income available to the non- sinking fund preferred stockholder.
  3. A terminal value versus a theoretically finite stream of income available to the non- sinking fund preferred stockholder.
  4. A positive value versus a theoretically finite earning available to the non-sinking fund preferred stockholder.

Answer(s): A



The most prevalent measure for assessing the likelihood of receiving future preferred dividends is the company's , commonly defined as the sum of pretax income plus interest expense divided by the sum of interest expense plus preferred dividends adjusted for tax.

  1. Variable-charge coverage ratio
  2. Fixed-charge coverage ratio
  3. fixed-charge leverage ratio
  4. fixed-charge liquidity ratio

Answer(s): B



1. Dissenting stockholder actions.
2. Minority oppression actions.
Either may be accompanied by claims of breach of fiduciary duty. These are the actions brought by:

  1. Minority shareholder
  2. Majority shareholders
  3. OTC Trading
  4. Short Selling

Answer(s): A



There are many subtitles to the application of fair value for cooperate law purposes. For example, some states consider concepts of "entire fairness." There are following aspects of entire fairness EXCEPT:

  1. Absolute fairness
  2. Relative fairness
  3. Competence and thoroughness
  4. Reorganization

Answer(s): D



in context of Delware block method means value based on expected earnings and/or dividends. It is akin to value based on the income approach in the three basic approaches to value. It may be arrives at by discounted cash flow (DCF), capitalization of earnings, or capitalization of dividends.

  1. Market value
  2. Investment Value
  3. Interest on invested capital
  4. Ownership interest

Answer(s): B



Share your comments for Financial ABV exam with other users:

U
Umar Ali
8/29/2023 2:59:00 PM

A and D are True

V
vel
8/28/2023 9:17:09 AM

good one with explanation

G
Gurdeep
1/18/2024 4:00:15 PM

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