NACVA Certified Valuation Analyst (CVA) CVA Dumps in PDF

Free NACVA CVA Real Questions (page: 4)

1. Dividends or partnership withdrawals (i.e. current economic income). 2. Proceeds from the ultimate sale of the ownership interest or liquidation of the subject business (i.e., including any long- term appreciation in the value of the security interest itself). These two are the categories of:

  1. The economic benefits that the non-controlling ownership interest holder may realize.
  2. The financial benefits that the non-controlling ownership interest holder may realize.
  3. The economic benefits that the controlling ownership interest holder may realize.
  4. The financial benefits that the controlling stakeholder may realize.

Answer(s): A



Accepted business valuation approaches and methods are all of the following EXCEPT:

  1. Income approach
  2. Asset-based approach
  3. Guideling acquisition company approach
  4. Market-based approach

Answer(s): C



There is a tendency for the market for the businesses to change more rapidly than the market for real estate. After all, a business can be thought of as a collection of _____________ each with its own price volatility and risks of ownership.

  1. Realized and unrealized earnings
  2. Short and long-term liabilities
  3. Tangible and intangible assets
  4. Unearned Revenues and fixed assets

Answer(s): C



The use of asset-based approach should not be confused with the selection of the appropriate premise of value for the subject business valuation. Some analysts mistakenly confuse the use of asset-based approach with a liquidation premise of value (or with a liquidation valuation). Rather, the asset-based approach can be used with all premises of value including:

  1. Value in use as a going-concern
  2. Value as orderly disposition
  3. Value as in exchange as part of a forced orderly liquidation
  4. A, B and C

Answer(s): D



The capital stock of a corporation, its net assets and its share of stock are entirely different things... the value of one bears no fixed or necessary relation to the value of the other; because:

  1. A share of common stock does not represent a share in the ownership of the assets of a business.
  2. Share holders are only concerned with dividends
  3. Only the corporation itself holds to all its assets and liabilities ... A thirsty shareholder of brewery cannot walk into "his" company and demand that a case of beer be charged to his equity account
  4. Putting capital in stocks is somewhat a risky investment

Answer(s): A,C



When is the guideline merged and acquired company method most useful?

  1. The initial value derived from the guideline merged and acquired company method, before adjustment for factors such as size of subject block and degree of marketability, is an indication of transaction prices of major ownership interest, usually controlling ownership interests.
  2. When same acquisition target has different buyers both due to perception and reality
  3. At the time of achieving synergies
  4. In estimation of enterprise value

Answer(s): A



Control transaction valuation multiples (often called deal multiples or acquisition multiples or acquisition multiples) often use the following measures of returns in the denominator EXCEPT:

  1. Revenues
  2. Operating income available to invested capital [earning before interest and taxes (EBIT)]
  3. Intangible book value
  4. Discretionary earnings

Answer(s): C



In merger market valuation models:

  1. We compare prices among similar companies, much like comparison shopping for a consumer item among similar retail stores
  2. Corporations are not yellow pencils, quickly stacked and easily matched
  3. Every M&A sale cannot be considered special or extraordinary
  4. M & A market mostly evinces aberrations

Answer(s): A



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