NACVA Exam CVA Topic 1 Question 114 Discussion

Actual exam question for NACVA's CVA exam

Question #: 114
Topic #: 1

[All CVA Questions]

Which of the following assumption is a base for the process of unlevering and relevering betas to an assumed capital structure?

ABusiness interest subject to valuation has the ability to change the capital structure of the subject company

BInvestors are risk averse

CSubject companies are at market value in this process

DThe amount of debt and equity at market value.

Show Suggested Answer

Suggested Answer: A

by Edna at Aug 01, 2025, 06:11 PM

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Rory

3 days ago

I agree with Justa, it makes sense to base the process on market values.

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Jolanda

6 days ago

Haha, I bet the exam writer had a field day coming up with these options. But D is definitely the way to go.

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Justa

7 days ago

I think the assumption is that the amount of debt and equity are at market value.

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Aleshia

8 days ago

D seems like the most logical choice here. The capital structure of the subject company is crucial in this process.

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Fatima

14 days ago

I think the correct answer is D. The amount of debt and equity at market value is the key assumption for unlevering and relevering betas.

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Fidelia

2 hours ago

I think it's important to consider that subject companies are at market value as well.

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Alonso

6 days ago

I agree, the amount of debt and equity at market value is crucial for this process.

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