NACVA Exam CVA Topic 4 Question 99 Discussion

Actual exam question for NACVA's CVA exam

Question #: 99
Topic #: 4

When using the elements of both the asset accumulation method and the capitalized earnings method in the same valuation, the analyst should pay particular attention to the selection of:

AThe required rates of return

BThe capitalization rates used in the excess earning component of the valuation

CIdentification of assets and liabilities on cost basis

DBoth A and B

Show Suggested Answer

Suggested Answer: D

by Adria at Sep 13, 2024, 11:41 PM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Coral

2 months ago

Oof, this one's a tough one. I'm gonna have to go with my gut and say D. Gotta cover all the bases, you know?

upvoted 0 times

...

Coral

2 months ago

Haha, this question is a real 'asset' to the exam! But seriously, D is the way to go.

upvoted 0 times

...

Lorrie

2 months ago

Hmm, I'm gonna go with A. The required rates of return are the real make-or-break here.

upvoted 0 times

Virgina

1 months ago

User 4: Definitely, it can make a big difference in the final value.

upvoted 0 times

...

Lajuana

1 months ago

User 3: I agree, it's important to get that part right.

upvoted 0 times

...

Levi

2 months ago

User 2: Yeah, they can really impact the valuation.

upvoted 0 times

...

Nicolette

2 months ago

User 1: I think the required rates of return are crucial.

upvoted 0 times

...

Loise

3 months ago

B seems like the obvious choice to me. Nailing down those excess earnings is key.

upvoted 0 times

...

Joaquin

3 months ago

I agree, D is the correct answer. Gotta watch out for those tricky capitalization rates!

upvoted 0 times

Madonna

2 months ago

Definitely. It's crucial to pay attention to those details to ensure a thorough analysis.

upvoted 0 times

...

Sonia

2 months ago

Yes, you're right. Those are key factors in getting an accurate valuation.

upvoted 0 times

...

Jill

2 months ago

I think D is the correct answer too. It's important to consider both the required rates of return and the capitalization rates.

upvoted 0 times

...

Alethea

3 months ago

I'm not sure, but I think it's important to consider both A and B for a comprehensive valuation.

upvoted 0 times

...

Lashaunda

3 months ago

I agree with Dorothy, because the required rates of return and capitalization rates are crucial in valuation.

upvoted 0 times

...

Lashawn

3 months ago

Definitely D. You need to be careful with both the required rates of return and the capitalization rates in the excess earnings component.

upvoted 0 times

Theodora

2 months ago

Absolutely, it's crucial to pay attention to both aspects when using these methods.

upvoted 0 times

...

Kris

2 months ago

So, D is the best choice for this situation.

upvoted 0 times

...

Arlie

2 months ago

Yes, those are key factors in getting an accurate valuation.

upvoted 0 times

...

Deane

2 months ago

I agree, it's important to consider both the required rates of return and the capitalization rates.

upvoted 0 times

...

Dorothy

3 months ago

I think the answer is D) Both A and B.

upvoted 0 times

...