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NACVA Accredited Valuation Analyst Exam Questions 21–25 (page: 6)

Which of the following are categories in which projections are usually necessary?

“When earnings have once been “realized”, so that they can be expressed with some approach to accuracy in the company’s accounts, they are already water under the mill and have no direct bearing on what the property in question is now worth. Value, under any plausible theory of capitalized earning power is necessarily forward looking. It is an expression of the advantage that an owner of the property may expect to secure from the ownership in the future. The past earnings are therefore beside the point, save as a possible index of future earnings”. This statement correctly expresses:

One way or the other, the financial benefits of ownership of an interest in a business enterprise must come from the following sources EXCEPT:

In many instances, value considerations are tempered by internal variables, often variables relative
to specific shareholding as opposed to the company as a whole. Which of the following is NOT out of such variables?

1. Dividends or partnership withdrawals (i.e. current economic income). 2. Proceeds from the ultimate sale of the ownership interest or liquidation of the subject business (i.e., including any longterm appreciation in the value of the security interest itself). These two are the categories of: