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NACVA Accredited Valuation Analyst Exam Questions 91–95 (page: 20)

Updated On: 9-Feb-2026

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:

  1. Valuation multiples chosen if the subject company’s capital expenditure requirements are significantly different relative to guideline companies
  2. Growth in working capital
  3. Excessive or inadequate working capital
  4. Net working capital

Answer(s): A



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?

  1. Buy-sell agreements
  2. Repurchase agreements
  3. Employment agreements
  4. Non-compete agreements

Answer(s): A,B



The analyst should try to gain an understanding of how the company perceives the industry and the particular aspect within which it operates. Which one of the following is NOT out of such aspects?

  1. What are the nature and rate of technological changes affecting the industry?
  2. How does it try to do the best job of fitting in its niche?
  3. What special industry factors have a bearing on this particular company?
  4. What is the progress and prognosis for new products or services, locations, channels of distribution, etc?

Answer(s): B



The analyst should be curious about the proprietary products and services, especially:

  1. Benefits attributable to brand name, trademarks copyrights or patents
  2. Favorable supplier contracts
  3. The unique characteristics that generate a comparative advantage over their competition
  4. Intangible assets

Answer(s): C



In the direct capitalization economic income method, the value of the company is estimated by dividing the expected economic income of company by an appropriate:

  1. Direct capitalization rate
  2. Indirect capitalization rate
  3. Direct discount rate
  4. Indirect discount rate

Answer(s): A



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