IFPUG Accredited in Business Valuation (ABV) - ABV FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

The capital asset pricing model suggests using the factor called to measure risk.

A. Key B. Index C. Alpha D. Beta

Discussion 0

Correct Answer: D Vote an answer

Question 2

A debt security that has no pledge of specific property or assets as collateral for the debt is called:

A. covenant B. indenture C. debenture D. convention

Discussion 0

Correct Answer: C Vote an answer

Question 3

It is possible to examine the uncertainty of income to the various suppliers of capital by investigating the uncertainty of income to the company. The greater the uncertainty of income to the company:

A. The greater the uncertainty of the income to the investor in the company B. The greater the uncertainty of the equity to the investor in the company C. The lesser the uncertainty of the income to the investor in the company D. The lesser the uncertainty of the equity to the investor in the company

Discussion 0

Correct Answer: A Vote an answer

Question 4

Let's say that a company had 100,000 shares outstanding at the beginning of the year and issued 30,000 more shares on May 1. The 100,000 shares would be outstanding for four months and the 130,000 shares for eight months, or two-thirds of the year. The weighted average number of shares outstanding for the year would be:

A. 180,000 B. 100, 000 C. 140,000 D. 120,000

Discussion 0

Correct Answer: D Vote an answer

Question 5

For example, in data collection process for conducting the respective valuation, supporting analysts may be collecting industry, economic, rate or return, and guideline transaction information at the same time that the case manager is working directly with the management of the subject company.
In any case, it is important to convey a sufficient overview of the company and of the assignment to all the valuation team members at an early meeting so that all of the analysts will be in a position to recognize important data as they proceed on the project... This example gives the idea that:

A. The analyst merely inspects voluminous or highly sensitive documents and only gets copies of the information necessary for the performance of the assignment B. Data about the subject property's market value is not covered in this approach C. The manner and sequence in which the data are gathered are important only to the extent that the process is complete an efficiently carried out D. Information gathered should be reviewed and analyzed before the visit to the company so as to focus the interviewing process on the most essential factors that affect the value of the company

Discussion 0

Correct Answer: C Vote an answer

Question 6

are defined as the sum of the market value of total liabilities divide by the aggregate liquidation value of the preferred stock.

A. Capitalization ratio B. Fixed charge coverage C. Pretax return on total capital D. Liquidation Coverage ratio

Discussion 0

Correct Answer: D Vote an answer

Question 7

Control shares are normally more valuable than minority shares because they contain a
bundle of rights that minority shares do not enjoy. Below is a list of some of the rights.
Which of the following is NOT out of such rights?

A. Appoint or change operational management B. Determine management compensation and prerequisites C. Negotiate and consummate goodwill D. Set operational and strategic policy and change the course of business

Discussion 0

Correct Answer: C Vote an answer

Question 8

If the funding of the forgoing requirements has been provided for through life insurance taken out in prior years that insurance should be reviewed as to both amount and type. The necessary amounts of insurance can change for several reasons. All of the following are those reasons EXCEPT:

A. Inflation B. Potential earnings C. Makeup of business ownership D. Increased value of the business

Discussion 0

Correct Answer: B Vote an answer

Question 9

Fair value is:

A. A price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participation at the measurement date. B. Quoted price C. That would be given to purchase an asset or paid to transfer a liability in an orderly transaction between market participation at the measurement date D. Market price on valuation date

Discussion 0

Correct Answer: A,D Vote an answer

Question 10

Which of the following are categories in which projections are usually necessary?

A. Antitrust, lost business opportunity, breach of contract B. Diversified businesses C. Infringement of patents, copyrights or trademarks D. Goodwill

Discussion 0

Correct Answer: A,C Vote an answer