NACVA Exam CVA Topic 6 Question 64 Discussion

Actual exam question for NACVA's CVA exam

Question #: 64
Topic #: 6

[All CVA Questions]

Which of the following is NOT out of the characteristics that must be present in a transaction while valuing recapitalizations and senior equity interests under Section 2701?

AThe retained security must be a class senior to the transferred junior security

BThe subject securities (both the retained senior preferred and transferred junior securities) must be non-publicly traded

CThe transaction must result in a transfer (directly or indirectly) between members of the family

DThe transfer is a proportionate transfer of all senior and junior equity interests and, as mentioned the transferor must retain a senior equity interest.

Show Suggested Answer

Suggested Answer: D

by Jaclyn at Feb 04, 2023, 11:24 PM

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25 days ago

I think the answer is C) The transaction must result in a transfer between members of the family.

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