"A takeover model became a significant explanatory variable for firms that had no coattail. A voting power model was a significant explanatory variable for firms that had coattail provision." This is the conclusion of:

A. Robinson, Rumsey and white study

B. Robinson, Richard and Black study

C. Mergers stat/Shannon Pratt's control premium study

D. Jeff, James and Chris study

Stockholders' privilege to subscribe to new issues of voting stock, usually the common stock or securities convertible into voting stock, usually the common stock or securities convertible into voting stock, before such offerings are made to nonstockholders. This is called:

A. A privileged subscription right

B. A preemptive right

C. Non-disclosure status

D. Pre-offering status

It is important to point out that _______________of the business can have an impact on the valuation conclusions, especially when it comes to partnership and limited liability companies.

A. Interim statements

B. Financial Schedule

C. The importance of seasonality to the subject company

D. A different legal status

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:

A. Valuation multiples chosen if the subject company's capital expenditure requirements are significantly different relative to guideline companies

B. Growth in working capital

C. Excessive or inadequate working capital

D. Net working capital

The fundamental of CAPM is:

A. That the risk premium portion of the expected return on a security is a function of that security's systematic risk.

B. That the risk premium portion of the expected return on a security is a function of that security's unsystematic risk.

C. That the risk discount portion of the expected return on a security is a function of that security's systematic risk.

D. That the risk discount portion of the expected return on a security is a function of that security's unsystematic risk.

It is highly unlikely, in formula approaches for setting the price in a buy-sell agreement, that the price established by a formula at the time of signing will be even close to the value of the interest at the time of triggering event, which could be many years later. For these reason analysts:

A. Highly encourage the use of formulas in high-sell agreements

B. Highly discourage the use of formulas in high-sell agreements

C. Allow flexibility in approach

D. Do not allow flexibility in approach

The obvious disadvantage of the formal appraisal with regular update is:

A. Cost

B. Wastage of time

C. Complexity of procedures

D. Detailed reports having unnecessary information

If the funding of the forgoing requirements has been provided for through life insurance taken out in prior years that insurance should be reviewed as to both amount and type. The necessary amounts of insurance can change for several reasons. All of the following are those reasons EXCEPT:

A. Inflation

B. Increased value of the business

C. Makeup of business ownership

D. Potential earnings

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:

A. Asset accumulation method

B. Asset based approach

C. Liquidity approach

D. Market based approach

The normalized economic income is capitalized, typically, as an annuity in perpetuity. The capitalization rate used in this procedure should be:

A. Commensurate with the risk of investment

B. Consistent with the measurement of net income

C. Debt component and equity component are blended

D. derived from the property over a discrete period of time