QUESTION: 89

The analyst should compare the backlog on the valuation date with that on previous dates. Such comparison, especially with the backlog one year prior to the valuation date, is one of:

The company's future prospects
Indication of process continuous process delay
The company's order blockage phenomenon
The future availability of suppliers

Answer(s): A

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The business's capital requirements play a part in the valuation because they are an integral part of estimating net cash flow and dividend-paying capacity. Capital requirements include such items EXCEPT:

Capital expenditures
Remedying deferred maintenance
Increasing working capital
Decreasing prepaid expenses

Answer(s): D

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QUESTION: 91

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:

Valuation multiples chosen if the subject company's capital expenditure requirements are significantly different relative to guideline companies
Growth in working capital
Excessive or inadequate working capital
Net working capital

Answer(s): A

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QUESTION: 92

Which of the following agreements often restrict the marketability of the subject interests and they can, correspondingly, affect the value of other classes of equity as well?

Buy-sell agreements
Repurchase agreements
Employment agreements
Non-compete agreements

Answer(s): A,B

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QUESTION: 89

QUESTION: 90

QUESTION: 91

QUESTION: 92

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