NACVA Exam CVA Topic 3 Question 106 Discussion

Actual exam question for NACVA's CVA exam

Question #: 106
Topic #: 3

[All CVA Questions]

____________________ are defined as the sum of the market value of total liabilities divide by the aggregate liquidation value of the preferred stock.

ALiquidation Coverage ratio

BPretax return on total capital

CCapitalization ratio

DFixed charge coverage

Show Suggested Answer

Suggested Answer: D

by Stevie at Feb 11, 2025, 08:33 AM

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Myra

5 days ago

Okay, I've got this. The question is asking for a ratio that involves liabilities and preferred stock, so I'm thinking C, Capitalization ratio, is the way to go.

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Hmm, this looks like a tricky one. Let's see, we need to find the ratio that is the sum of the market value of total liabilities divided by the aggregate liquidation value of the preferred stock. I'm going to go with A, Liquidation Coverage ratio.

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Mattie

18 days ago

I'm not sure, but I think it makes sense. Let's go with C) Capitalization ratio.

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Bong

19 days ago

I agree with Billy, because it measures the company's ability to cover its total liabilities with its preferred stock.

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Billy

20 days ago

I think the answer is C) Capitalization ratio.

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NACVA Exam CVA Topic 3 Question 106 Discussion

Contribute your Thoughts:

Myra

India

Mattie

Bong

Billy