AVA Dumps AVA Braindumps AVA Real Questions AVA Practice Test AVA Actual Questions Financial AVA Accredited Valuation Analyst https://killexams.com/pass4sure/exam-detail/AVA Answer: D QUESTION: 334 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: A. Fair market value B. Appraisal value C. Standard value D. Financial value Answer: A QUESTION: 335 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: A. Product-line valuation method B. Qualitative adjustment method C. Invested capital valuation method D. Market leverage valuation method Answer: C QUESTION: 336 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? A. Size of the block B. Transaction activity C. Dividends D. All of the above 112 Answer: D QUESTION: 337 Which of the following is the most frequently encountered reason for needing to value debt securities? A. Purchase or sale for cash B. Exchange of equity for debt, or vice versa C. Allocating total enterprise value among classes of securities in a leveraged buyout, recapitalization (including tax-free reorganizations), or bankruptcy reorganization D. All of the above Answer: D QUESTION: 338 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? A. Valuation B. Investment C. Interest payment D. None of the above Answer: D QUESTION: 339 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. A. Maturity of debt B. yield to maturity C. Interest maturity D. Cost Maturity Answer: B 113 QUESTION: 340 Which of the following is the information needed for estimating the value of a closely held debt security? A. the amount of future payments generated by the debt security B. the timing of the future payments generated by the security C. the appropriate rate of interest or yield to maturity to apply to the future payments to estimate the present value D. All of the above Answer: D QUESTION: 341 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. A. True B. False Answer: A QUESTION: 342 What allows the debtor to repay the debt prior to its maturity? A. Fund provision B. Call provision C. Debt provision D. Security provision Answer: B QUESTION: 343 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? 114 A. collateral provision B. risk provision C. sinking fund provision D. Tax provision Answer: C QUESTION: 344 A debt security that has no pledge of specific property or assets as collateral for the debt is called: A. debenture B. indenture C. convention D. covenant Answer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