NACVA Exam CVA Topic 5 Question 65 Discussion

Actual exam question for NACVA's CVA exam

Question #: 65
Topic #: 5

[All CVA Questions]

Due to these complexities, for practical purposes it is acceptable to use the ratio as we defined it. However, the analyst is well advised to research:

Athe subject companies' use of short-term debt

Bthe guideline companies' use of short-term

CBoth the subject and guideline companies' use of short-term debt to determine whether to adjust this ratio to include all interest-bearing debt

DWhether to adjust this ratio to include all interest-bearing debt

Show Suggested Answer

Suggested Answer: B

by Jolene at Mar 01, 2023, 12:22 AM

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Amber

3 days ago

Option C makes the most sense to me. We need to analyze the short-term debt usage of both the subject and guideline companies to determine if an adjustment is necessary.

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