NACVA Exam CVA Topic 4 Question 99 Discussion

Actual exam question for NACVA's CVA exam

Question #: 99
Topic #: 4

[All CVA 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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Coral

8 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?

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Coral

8 months ago

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

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Lorrie

8 months ago

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

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Virgina

7 months ago

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

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Lajuana

7 months ago

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

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Levi

8 months ago

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

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Nicolette

8 months ago

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

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Loise

8 months ago

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

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Joaquin

8 months ago

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

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Madonna

8 months ago

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

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Sonia

8 months ago

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

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Jill

8 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.

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Alethea

9 months 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

9 months ago

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

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Lashawn

9 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.

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Theodora

8 months ago

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

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Kris

8 months ago

So, D is the best choice for this situation.

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Arlie

8 months ago

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

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Deane

8 months ago

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

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Dorothy

9 months ago

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

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