NACVA Exam CVA Topic 4 Question 99 Discussion

Actual exam question for NACVA's Certified Valuation Analysts exam

Question #: 99
Topic #: 4

[All Certified Valuation Analysts Questions]

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

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Loise

1 hours ago

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

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Joaquin

2 days ago

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

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Alethea

13 days ago

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

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Lashaunda

19 days ago

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

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Lashawn

23 days ago

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

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Dorothy

27 days ago

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

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