NACVA Certified Valuation Analyst (CVA) - CVA Exam Practice Test

Some companies' articles of incorporation have provisions that if majority shares are sold in a change of control transactions, the majority shareholders must be offered the same price. This relates to:

is perhaps the most difficult task for the business appraiser.

The marital estate comes into being upon filing for divorce. It represents the assets that must be divided according to the property laws of the state. Currently, each state adheres to either (1) or (2) .

There are some allowable methods for determining the basis of property received in exchange for other property. Which of the following is/are out those methods?

1.Obtain or develop a cost-basis balance sheet
2.Determine which assets and liabilities on the cost-basis balance sheet require a revaluation adjustment
3.Identify off-balance sheet intangible assets or contingent liabilities that should be recognized and valued
4.Identify off-balance sheet or contingent liabilities that should be recognized and valued
5.Estimate the value of the various asset and liability accounts identified in steps 2 through 4
6.Construct a value-basic balance sheet, based on the indicated values concluded during step 1 through 5, and quantify the subject value
All these above statements are the steps of:

The capital asset pricing model is part of a larger body of economic theory known as capital market theory. Capital market theory also includes:

1 1-1+ premium This is a formula for:

Imagine that an investor in the common stock of a company has two choices, either to (1) but 100 shares of a company's common stock at $10 per share or (2) to purchase a call for $125 to purchase 100 shares at the same $10 price at the end of nine months. If the investor chooses to buy the stock, the investor must pay $1,000 immediately and is at risk for the entire $1,000 investment. If the investor chooses to purchase the call option, the investor will pay only $125 immediately and can wait until the option's expiration date to decide whether or not to buy the stock for an additional $1,000. The investor's risk is limited to $125. If the option is _, the option will be exercised. If it is , the option will simply lapse.

Family law courts generally recognize three basic approaches to value. Which of the following is NOT out of those approaches?

There are some factors that determine whether the buy-sell agreement is conclusively binding for estate tax purposes. Which of the following is/are out of those factors?

The fundamental risk measures and their correlation coefficient with observed equity risk premiums are as follows EXCLUDING:

The first step in the valuation process, after carefully defining the assignment, is to gather the data necessary to conduct the assignment. These data can be categorized into three groups. Which one of the following is NOT out of those groups?

"The value of an asset is the present value of its expected returns. Specifically, you expect an asset to provide a stream of returns during the period of time you own it. To convert this estimated stream of returns to a value for the security, you must discount this stream at your required rate of return. This process requires estimates of (1) the stream of expected returns and (2) the required rate of return on the investment. Value today always equals future cash flow discounted at the opportunity cost of capital." This is actually: