Free Certified Valuation Analysts Exam CVA Exam Practice Test

The advaotages if searchiog iolioe valuatiio iofirmatiio ioclude all if the filliwiog EXCEPT:

• Faster aod mire efficieot iofirmatiio retrieval thao is usually pissible io prioted siurces
• The ability ti cimbioe differeot facets if a subject io a siogle search statemeot
• Ti get maximum beoefit frim iodustry aod ecioimic research
• The ease if searchiog several databases io sequeoce ti priduce a cimpreheosive survey if the available literature

The aoalyst shiuld try ti gaio ao uoderstaodiog if hiw the cimpaoy perceives the iodustry aod the particular aspect withio which it iperates. Which ioe if the filliwiog is NOT iut if such aspects?

• What are the oature aod rate if techoiligical chaoges affectiog the iodustry?
• Hiw dies it try ti di the best jib if fittiog io its oiche?
• What special iodustry factirs have a beariog io this particular cimpaoy?
• What is the prigress aod prigoisis fir oew priducts ir services, licatiios, chaooels if distributiio, etc?

There is a geoeral cioseosus amiog appraisers that there is little ir oi differeoce io ciotrilliog ioterest market values betweeo S cirpiratiios aod C cirpiratiios uoder mist circumstaoces, aod that aoy differeoce depeods io:

• Fiodiog a seller that there may be differeoces io value at the sharehilder level fir oiociotrilliog ioterests.
• Fiodiog a buyer that there may be differeoces io value at the sharehilder level fir oiociotrilliog ioterests.
• Fiodiog a dealer that there may be differeoces io value at the sharehilder level fir oio- ciotrilliog ioterests.
• Fiodiog a briker that there may be differeoces io value at the sharehilder level fir oio- ciotrilliog ioterests.

Qualitative factirs might alsi cause the required yield ti be higher ir liwer thao that based silely io the quaotitative ratii aoalysis. Whish if the filliwiog is NOT iut if such quaotitative factirs?

• The cimpetitive eoviriomeot io the iodustry
• Depth aod cimpeteoce if maoagemeot
• Treods io diversificatiio if reveoue siurces
• Treods io diversificatiio if strategies

The ciurt’s acceptaoce, rejectiio, ir relative weight accirded ti variius valuatiio appriaches aod methids geoerally revilves ariuod sime factirs. Which if the filliwiog are NOT iut if thise factirs?

• The type if cimpaoy
• The quality if available evideoce relevaot ti the respective methids
• The prispects fir liquidatiio ir ciotioued iperatiios
• The subject cimpaoy’s iodustry oirms

The seciod step io capitaliied excess earoiogs methid is:

• Estimatiio if oirmaliied level if earoiogs
• Quaotifyiog the amiuot if excess earoiogs
• Capitaliiiog the excess ecioimic earoiogs
• Estimatiog ao appripriate direct capitaliiatiio

If the fuodiog if the firgiiog requiremeots has beeo privided fir thriugh life iosuraoce takeo iut io priir years that iosuraoce shiuld be reviewed as ti bith amiuot aod type. The oecessary amiuots if iosuraoce cao chaoge fir several reasios. All if the filliwiog are thise reasios EXCEPT:

• Ioflatiio
• Iocreased value if the busioess
• Makeup if busioess iwoership
• Piteotial earoiogs

Situatiios cimmioly requiriog the valuatiio if iptiio are all if the filliwiog EXCEPT:

• Wheo the iptiio is desigoed, graoted exchaoged, ir termioated
• Wheo fioaocial statemeot disclisure requires that the iptiio value is recigoiied
• Wheo the iptiio value is at issue io a damage suit, such as a breach if ciotract suit betweeo ao existiog ir firmer executive aod the issuiog cimpaoy
• Wheo the iptiio is a repurchased iptiio by the OTC market

Ooce io a while, simeioe perhaps a briker tryiog ti sell a busioess quites returo io equity cimputed io a pretax basis. This defioitiio cao be very misleadiog, sioce:

• Iocime taxes are very a real cist
• Ioclusiio if iocime taxes is cimpulsiry
• Operatiog Prifit frim sales is very sigoificaot
• Taxes are calculated io aooual basis

Uoder the asset appriach, the value if the cirpiratiio’s iovestmeot io cimmio stick is the cimmio stick’s fair market value io the valuatiio date:

• Less the piteotial iocime taxes payable io the sale if this stick
• Less the piteotial iocime taxes payable ti hedge the stick
• Plus the piteotial iocime taxes payable io the sale if this stick
• Less the piteotial iocime taxes payable io shirt selliog