NACVA Certified Valuation Analyst (CVA) - CVA FREE EXAM DUMPS QUESTIONS & ANSWERS]

Question 1

In merger market valuation models:

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

Discussion 0

Correct Answer: B Vote an answer

Question 2

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?

A. 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. B. 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. C. Future redemption by the
issuing
company is mandatory
and based on a specific redemption schedule. D. The entire issue is redeemable at the option of the issuing corporations at a changing price contingent upon a certain event.

Discussion 0

Correct Answer: D Vote an answer

Question 3

A unique feature of Merger stat/Shannon Pratt's control premium study is a transaction code by type of transaction. i.e.:

A. C- Control and control risk H- Hedging F- Financial V-Vulnerability B. F- Funds H- Horizontal value V- Vertical value C- Control value C. F- Financial H-Horizontal integration V-Vertical integration C-Conglomerate D. F-Financial H-Hedged Value V- Vertical integration C- Corporations

Discussion 0

Correct Answer: C Vote an answer

Question 4

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

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

Discussion 0

Correct Answer: C Vote an answer

Question 5

_ proclaims that if valuing a company by the asset approach, the analyst should check to see whether capital gains taxes would be incurred on the liquidation of the assets. If so, it is possible that a discount should be taken for the capital gains tax liability.

A. Fiduciary duties B. Contractual restrictions C. Potential dilution D. Built-in gains discount

Discussion 0

Correct Answer: D Vote an answer

Question 6

It is possible (although not very common) for a security to have a negative beta (i.e. a beta less than zero). Such a beta would indicate that:

A. It is the result of aggressive securities B. Betas for small and publicly traded companies are often unreliable C. Risk-free return would be greater D. The
returns of these securities
are countercyclical
to the returns
of the board investment market index.

Discussion 0

Correct Answer: D Vote an answer

Question 7

When there is a choice among accounting practices, private companies tend towards a more conservative selection in order to minimize taxes, while public companies may account more aggressively in order to report:

A. More income so as to please shareholders B. More benefits C. Asset values D. Treatment of intangible assets

Discussion 0

Correct Answer: A Vote an answer

Question 8

The general purpose of is to aid in making some quantifiable assessments of the long-term solvency of the business and its ability to deal with financial problems and opportunities as they arise.

A. Balance sheet leverage ratio B. Liquidity ratios C. Capital Structure D. Both A and B are same

Discussion 0

Correct Answer: D Vote an answer

Question 9

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 10

applies option pricing methods to value economic projects, companies, and financial securities. Just as option pricing models incorporate the flexibility of option holders' decision as to whether and when to exercise an option by paying the exercise price.

A. Corporation based valuation B. Valuing the built-in gains C. Return option valuation D. Real option valuation

Discussion 0

Correct Answer: D Vote an answer

Question 11

The primary ownership interest characteristics that need to be addressed in almost every business valuation are the following EXCEPT:

A. Degree of marketability B. Fair market value on a nonmarketable, non-controlling ownership interest basis. C. Control or minority valuation basis (not necessarily a black-and-white issue _there may be elements of control without absolute control D. Fair market value

Discussion 0

Correct Answer: B,D Vote an answer