ABV Dumps ABV Braindumps
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Accredited in Business Valuation (ABV)
https://killexams.com/pass4sure/exam-detail/ABV
deals with the liquidation of the subject business ownership interest.
Investment
Reinvestment
Marketability
Discount quantification
The degree to which an asset, business, business ownership interest, or security can
readily be converted into cash without significant loss of principal is called:
Marketability
Liquidity
Investor ownership
Public leadership
When non-controlling business ownership interests are valued by reference to the prices
paid for guideline actively traded securities, the benchmark for the lack of marketability of the non-controlling ownership interests is the active public securities markets, this publicly traded counterpart value is often called:
Freely traded value
Restricted traded value
Business traded value
None of the above
What is identical in all respects to the freely traded stock of a public company except for
the fact that it is restricted from trading on the open stock market for a certain period?
Letter stock
Empirical shares
Raising capital
Trading ownership
What is a publicly traded company that must file Forms 10-K, 10-Q, and other information with the Securities Exchange Commission (SEC)?
Stock Exchange
over-the-counter capital
Non-reporting company
Reporting company
Which study found that companies with stock listed on national exchanges had lower discounts on their restricted stock transactions than did companies with stock traded over- the-counter (OTC)?
Trout study
Moroney study
Gelman study
Maher study
The Johnson study analyzed following factors that might influence the size of the
discount EXCEPT:
Positive net income
Sales volume
Transaction value
Gross income
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?
Qualitative Marketability Discount Model
Qualitative Liquidity Discount Model
Quantitative Marketability Discount Model
Quantitative Liquidity Discount Model
Which of the following is NOT the factor that affects the degree of marketability?
“put” right
Dividend payment
Potential Buyer
Asset capitalization
The process of is the analysis of the alternative valuation indications in
order to arrive at a final value estimate.
Reconciliation
Reassessment
Revaluation
Renegotiation
Which procedure does not quantitatively justify the valuation synthesis process, it does so
in a qualitative manner?
Explicit weighting
Implicit weighting
Business weighted average
Procedural weighted average
Which of the following type of final value estimates may be appropriate, given the purpose and objective of the valuation?
A point estimate
A range of value
A relationship value
All of the above
According to the 2006 edition of the Uniform Standards of Professional Appraisal
Practice (USPAP), the definition of an appraisal, the act or process of developing an opinion of value; an opinion of value is called:
Evaluation
Appraisal
Assessment
Analysis
The length, type, and (to a certain extent) content of a business valuation report may be influenced by:
The valuation client
Any applicable statutory authority
The courts, through published judicial precedent
All of the above
The Uniform Standards of Professional Appraisal Practice (USPAP) Ethics Rule is divided into which four sections?
conduct, management, confidentiality and record keeping
planning, reconciliation, confidentiality and record keeping
conduct, management, examining and record keeping
planning, management, testing and record keeping
The price at which such property would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or to sell, and both having reasonable knowledge of relevant facts is called:
Fair market value
Appraisal value
Standard value
Financial value
Method that is commonly used in the valuation of closely held companies in order to minimize the differences between the subject company and the guideline companies is known as:
Product-line valuation method
Qualitative adjustment method
Invested capital valuation method
Market leverage valuation method
For a non-controlling ownership interest in Warm Chicken, which of the following factor
is considered, that have an impact on the selection of the appropriate discount for lack of marketability?
Size of the block
Transaction activity
Dividends
All of the above
Which of the following is the most frequently encountered reason for needing to value debt securities?
Purchase or sale for cash
Exchange of equity for debt, or vice versa
Allocating total enterprise value among classes of securities in a leveraged buyout, recapitalization (including tax-free reorganizations), or bankruptcy reorganization
All of the above
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?
Valuation
Investment
Interest payment
None of the above
The rate of interest that, when applied to the expected future payments on a debt security,
produces a present value of the payments equal to the debt security’s observed market price is called the of that security.
Maturity of debt
yield to maturity
Interest maturity
Cost Maturity
Which of the following is the information needed for estimating the value of a closely held debt security?
the amount of future payments generated by the debt security
the timing of the future payments generated by the security
the appropriate rate of interest or yield to maturity to apply to the future payments to
estimate the present value
All of the above
If the market-determined yield to maturity for a debt security is equal to the security’s coupon interest rate, the security’s fair market value is equal to its face or par value.
True
False
What allows the debtor to repay the debt prior to its maturity?
Fund provision
Call provision
Debt provision
Security provision
Which provision requires the debt issuer to call or retire a contractually determined
portion of the entire debt issue periodically over time prior to the issue’s maturity date?
collateral provision
risk provision
sinking fund provision
Tax provision
A debt security that has no pledge of specific property or assets as collateral for the debt
is called:
debenture
indenture
convention
covenant
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