Reference no: EM133272692
1. This is the theoretical value at which an analyst thinks a stock should be selling.
Intrinsic value
Investment value
Fair market value
2. The first step of this method is to multiply the net tangible assets by the rate of return such assets might reasonably be required to earn.
Excess earnings method
Discounted future income method
Replacement cost method
3. Examples of business damage valuation methods include which of the following?
Cost approach
Comparative analysis of the damaged company to other companies in the same industry
Determining the allocation to creditors
4. The most common measure of value used in most business valuations is:
Future value
Fair market value
Intrinsic value
5. The rules of thumb method falls under which of the three valuation approaches?
Market approach
Income approach
Asset approach
6. This represents the gross profit of a business, less its operating expenses, but before considering other income and expenses, and income taxes.
Operating profits
Operating expenses
Pretax profit margin
7. AMP Manufacturing has $4 million worth of raw material, $12.5 million worth of labor and factory costs and $300,000 worth of depreciation expense for the year. The company's net revenues were $25 million.
What is AMP's gross profit margin?
66%
32.8%
82.8%
8. Analyzing recent sales of entire companies that are in the same line of business as the subject private company is which method of the market approach?
Guideline method
Market data method
Past transactions method
9. This may be applied when ownership interest is greater than 50% (up to 100%) and can exercise a significant amount of control over a business.
Control premium
Loss of a key person discount
Minority interest discount
10. The adjusted book value method falls under which approach?
Market approach
Income approach
Asset approach