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Free ABV Exam Braindumps (page: 35)

Page 34 of 87
PDF with 344 Questions

applies option pricing methods to value economic projects, companies, and financial securities. Just as option pricing models incorporate the flexibility of option holders' decision as to whether and when to exercise an option by paying the exercise price.

  1. Corporation based valuation
  2. Valuing the built-in gains
  3. Return option valuation
  4. Real option valuation

Answer(s): D



One of the most controversial and unsettled issues in business valuation today is, the valuation of:

  1. Corporations
  2. C corporations
  3. S corporations
  4. MNCs

Answer(s): C



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:

  1. The buyer realizes a step-up in tax basis of the underlying assets when acquiring a "seasoned" S corporation
  2. Most acquirers do not want to purchase stock of another corporation because of the potential for liability assumptions
  3. The step-up in tax basis of the assets result in an increase in proceeds
  4. The entire analysis should be based on entire data

Answer(s): A



There is a general consensus among appraisers that there is little or no difference in controlling interest market values between S corporations and C corporations under most circumstances, and that any difference depends on:

  1. Finding a seller that there may be differences in value at the shareholder level for non- controlling interests.
  2. Finding a buyer that there may be differences in value at the shareholder level for non- controlling interests.
  3. Finding a dealer that there may be differences in value at the shareholder level for non- controlling interests.
  4. Finding a broker that there may be differences in value at the shareholder level for non- controlling interests.

Answer(s): B






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