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NACVA CVA Exam - Topic 2 Question 20 Discussion

Posted by Diane on May 03, 2022 at 06:26 AM

The most appropriate application of the excess earnings method is for the purpose of:

Suggested Answer: A

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13 comments · newest first
RU
Rupert 12 months ago
Definitely not D, that one doesn't fit the method at all.
GL
Glynda 1 year ago
I thought it was more about tangible assets, not just intangibles.
IS
Isreal 1 year ago
Wait, are we sure about that? Seems a bit off to me.
JE
Jesus 1 year ago
Totally agree, option C makes the most sense here!
LA
Lai 1 year ago
The excess earnings method is mainly used for intangible asset valuation.
ST
Stevie 1 year ago
I feel like the excess earnings method could also relate to allocating value between tangible and intangible assets, but I can't recall the specifics.
EM
Emerson 1 year ago
I remember practicing a similar question where we discussed how this method helps in valuing intangible assets, so I might lean towards option C.
FR
Freeman 1 year ago
I think the excess earnings method is mainly about estimating a normalized level of economic earnings, but I'm not entirely sure.
NA
Nadine 1 year ago
I thought it was more about quantifying excess earnings, but now I'm questioning if that's the main focus of the method.
RY
Ryan 1 year ago
This is a tricky one. I'll have to review my notes on stream ciphers to see if I can identify the specific algorithm being described.
KE
Keva 1 year ago
I'm leaning towards PHA since it emphasizes identifying potential hazards, but I'm not entirely certain.
VI
Virgie 1 year ago
The key here is that the subscription is nonrenewable and priced yearly, so I'm leaning towards option D.
GE
Gerald 1 year ago
I might be confused, but I feel like GPO modification could relate to security, too. However, I think process injection is more specific to executing code.
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