QUESTION: 9

In most business valuations, the opinion of value will be based at least partly on other, similar transactions, such as:

Prices at which stocks are denominated
Degree of marketability
Prices at which stocks in the same or a related industry are trading in the public market relative to their earnings, assets, dividends or other relative variables
Black-or-white issues

Answer(s): C

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In a marital dissolution the parties may be concerned with the change in value that occurred during the marriage. In estate cases, the trustee, the executer, or personal representative will consider adopting the “alternative valuation date”(i.e. six months after the date of death) to determine which is more advantageous. These are the examples of:

Situations identifying valuation date
Situations having more than one valuation dates
Litigated cases
Universally applicable methods to finalize valuation date

Answer(s): B

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QUESTION: 11

In___________ cases, the valuation date itself is an issue to be resolved by the court. In such situations, the appraiser must be prepared to address the valuation as of several dates, sometimes without knowing which date the court determined to be relevant until after the judgment is rendered. Since the choice of valuation date in such cases is a legal matter.

Litigated cases
Estate tax cases
Enterprise value identification cases
Cooperatives

Answer(s): A

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QUESTION: 12

Valuation reports should contain a set of limiting conditions, and one of the typical limiting conditions is as follows:

Legal and estate tax factors
The valuation is valid only for the valuation date or dates specified herein. No other purpose is intended or should be inferred
Litigation over business valuation is commonplace
The purpose of the valuation encompasses the use to which the valuation exercise is expected to be put

Answer(s): B

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QUESTION: 9

QUESTION: 10

QUESTION: 11

QUESTION: 12