Reference no: EM133004858

VALUATION METHOD

True or False

Problem 1. Valuation does not include the use of forecasts to come up with reasonable estimate of value of an entity's assets or its equity

True

False

Problem 2. Going Concern firm value is determined under the going concern assumption. The going concern assumption believes that the entity will not continue to do its business activities into the foreseeable future,

True

False

Problem 3. Fundamental analysts are persons who are interested in understanding and measuring the intrinsic value of a firm.

True

False

Problem 4. Businesses treat capital as a scarce resource that they should compete to obtain and efficiently manage.

True

False

Problem 5. Valuation techniques may differ across different assets, but all follows similar fundamental principles that drives the core of these approaches.

True

False

Problem 6. Methods to value for real estate can may be different on how to value an entire business.

True

False

Problem 7. As valuation mostly deals with projections about future events, analysts should hone their ability to balance and evaluate different assumptions used in each phase of the valuation exercise, assess validity of available empirical evidence and come up with rational choices that aligns with the ultimate objective of the valuation activity

True

False