NEED 100% PLEASE!!! QUESTION 16 Which of the following is not a method of valuin
ID: 2480527 • Letter: N
Question
NEED 100% PLEASE!!!
QUESTION 16
Which of the following is not a method of valuing intangibles?
CAPM model
b. Allocated value in arms-length bargaining
c. Residual value
Earnings based approach
QUESTION 17
When valuing a closely held business, which of the following is considered the most difficult?
Determining how many years to include in the analysis
b. Developing normalizing entries
Determining the capitalization/discount rate
All of the above are equally difficult
QUESTION 18
Which of the following data would not be useful in valuing a closely held business?
Price/Earnings Ratio
Capital Asset Pricing Model
Beta
None of the above would be useful
QUESTION 19
The Build-up model of developing a discount rate is most often used when valuing the following types of companies
Small public companies
Small private companies
Large public companies
Either small or large public companies
QUESTION 20
Which of the following is not an external factor that affects the capitalization rate?
a. Expectations of a particular industry
Competitive environment of a particular industry
c. The income trend of the client over five years
d. Existing conditions of the general economy
NEED 100% PLEASE!!!
a.CAPM model
b. Allocated value in arms-length bargaining
c. Residual value
d.Earnings based approach
Explanation / Answer
(16) (a)
CAPM is used to compute expected return of a stock or asset, and is not used to value intangibles.
(17) (d)
All options are correct. A closely held business does not have a benchmark valuation model that can be derived from its peer business. So estimating these issues are equally difficult.
(18) (d)
None of the options can be used to value a closely held business, since these are useful for valuation of publicly held companies only.
(19) (a)
(20) (c)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.