NACVA Exam CVA Topic 5 Question 60 Discussion

Actual exam question for NACVA's CVA exam

Question #: 60
Topic #: 5

[All CVA Questions]

The basic valuation model, which is central to the income approach to valuation, has only two variables. Which of the following is/are NOT out of those variables?

AThe amount of the expected prospective economic income in each period

BThe required rate of return (yield rate) by which the expected prospective economic income receipts should be discounted

CCommon equity

DEconomic income measured

Show Suggested Answer

Suggested Answer: D

by Helga at Nov 19, 2022, 10:19 PM

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Audrie

25 days ago

I heard the answer is 'your soul.' Valuation is a dark art, my friends.

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Lucy

4 days ago

A) The amount of the expected prospective economic income in each period

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Lucy

14 days ago

D) Economic income measured

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Lucy

16 days ago

C) Common equity

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Na

27 days ago

I've got this one. The two variables are the amount of expected income and the required rate of return. Easy peasy!

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In

1 months ago

Haha, nice try with that 'common equity' option. I'm not falling for that one!

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Afton

1 months ago

Wait, isn't economic income measured one of the variables? I'm a bit confused here.

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Goldie

2 days ago

C) Common equity

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Brett

9 days ago

B) The required rate of return (yield rate) by which the expected prospective economic income receipts should be discounted

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Felicitas

16 days ago

A) The amount of the expected prospective economic income in each period

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Jovita

1 months ago

I think Common equity is not one of the two variables. That's an easy one to spot.

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Phung

7 days ago

B) The required rate of return (yield rate) by which the expected prospective economic income receipts should be discounted

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Malinda

16 days ago

A) The amount of the expected prospective economic income in each period

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Teddy

2 months ago

Hmm, I see your point. Let's review the question again.

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Vilma

2 months ago

I disagree, I believe the answer is D) Economic income measured.

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Teddy

2 months ago

I think the answer is C) Common equity.

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