IFPUG Accredited in Business Valuation (ABV) - ABV Exam Practice Test
Which model simply estimates a time horizon at which the interest will be liquidated, a liquidating price based on annual percentage growth in value from the valuation date, and interim cash flows to the holder?
Correct Answer: A
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Marital dissolution cases in jurisdiction where personal rather than a marital asset and therefore needs to be separately valued from the rest of the business enterprise. This example is an application of:
Correct Answer: B
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About half the state and many individual companies have statutes or articles that require a super majority to effect certain corporate actions. If the minority block is of sufficient size to block such actions, there may be cause to reduce the discount for lack of control. In most cases, this would not be grounds for a sight reduction in the discount. Which of the following term is related to this scenario?
Correct Answer: D
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Which theory states that the fair market value of an investment is equal to the present value of the future payments, discounted back to the current time at an appropriate discount rate?
Correct Answer: D
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are excellent
sources
of statistical,
analysis ad projections of regional, national and international economic and financial conditions.
sources
of statistical,
analysis ad projections of regional, national and international economic and financial conditions.
Correct Answer: C
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There is no set of number guideline companies to use. However, the more data there are about each company and the greater the similarity between the subject company and the companies chosen as guideline companies, the guideline companies will pass muster.
Correct Answer: B
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is computed by reverse re-engineering the price of a publicly traded option on the same underlying stock. This is the one when used in the Black-Scholes model along with the other
four known variables results in a calculated
value that matches the market price of the publicly traded options.
four known variables results in a calculated
value that matches the market price of the publicly traded options.
Correct Answer: B
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Published betas for publicly traded stocks reflect the actual capital structure of each respective company so as a result, they can be referred to as:
Correct Answer: A
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To get an explanation or interpretation of something on the financial statements, or to consult
working papers for details that augment the financial
statements,
it may be necessary to interview the company's outside independent accountant. This is most often the case when:
working papers for details that augment the financial
statements,
it may be necessary to interview the company's outside independent accountant. This is most often the case when:
Correct Answer: C,D
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The purpose of Erickson and Wang study was to empirically quantify the increase in selling price realized by sellers of entire companies in cases where:
Correct Answer: C
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Most companies carry accounts receivable and deduct some allowance for potentially uncollectible accounts. The typical policy is to the allowance for doubtful accounts at the end of each month by a percentage of that month's _.
Correct Answer: A
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When specifying, who is to provide the valuation services, the important distinction is whether the client is retaining the appraisal firm itself or the individual appraiser employed by the firm. The common practice is:
Correct Answer: C
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Capital expenditures are a specific component in the discounted or capitalized net cash flow methods. When using a market comparison approach to valuation, capital expenditure requirements may influence:
Correct Answer: C
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list can yield insight into the company's profitability, liquidity and even viability. However, many relatively small companies do not prepare them.
Correct Answer: D
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