AVA Exam Questions and Answers | Exam-Dumps (Page: 13)

QUESTION: 61

The special characteristics of the preferred stock that we typically encounter include all of the following EXCEPT:

Dividend rate
Liquidation preference
Cumulative versus noncumulative dividends
Convertible versus nonconvertible rights into preferred equity

Answer(s): D

QUESTION: 62

Market evidence indicated that adjustable-rate preferred stocks generally required yields in the range of___________ _ basic points.

42 to 445
48-498
32-500
50-500

Answer(s): A

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If a $1000 per share value of convertible bond is issued for $1000, and is convertible into 20 shares of issuer’s common stock that pays no dividend, there will be no economic benefit in converting the debt to stock as long as the common stock is selling for less than $50 per share. If the bond value is indeed in the equity-equivalent region, as the value of a single share of common stock increases $1, the bond value will increase:

$25
$50
$20
$10

Answer(s): C

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QUESTION: 64

The most common forms of redemption provisions found in privately held companies are as follows. Which of the following is NOT out of the common forms of redemption provisions?

The entire issue is redeemable at the option of the issuing corporation at a specified price over a designated time period. These types of issue are commonly referred to as callable.
The entire issue is redeemable at the option of the issuing corporations at a changing price contingent upon a certain event.
Future redemption by the issuing company is mandatory and based on a specific redemption schedule.
Future issues have sinking funds provisions similar to vehicle by which bonds are retired at intervals up to their maturity dates and are referred to as sinking fund preferred.

Answer(s): B

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QUESTION: 65

Whish of the following factor/s is/are most important for the redemption provisions that affect their value?

Call price
Whether or not a sinking fund or some other means of financing the redemption is established
Issuing company’s financial ability to cash out the preferred shares without some sort of redemption fund.
Redemption methods

Answer(s): D

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NACVA AVA Exam (page: 13)
NACVA Accredited Valuation Analyst Exam
Updated on: 15-Feb-2026

QUESTION: 61

QUESTION: 62

QUESTION: 63

QUESTION: 64

QUESTION: 65

NACVA AVA Exam (page: 13) NACVA Accredited Valuation Analyst Exam Updated on: 15-Feb-2026

QUESTION: 61

QUESTION: 62

QUESTION: 63

QUESTION: 64

QUESTION: 65

NACVA AVA Exam (page: 13)
NACVA Accredited Valuation Analyst Exam
Updated on: 15-Feb-2026