NACVA Exam CVA Topic 4 Question 91 Discussion

Actual exam question for NACVA's CVA exam

Question #: 91
Topic #: 4

[All CVA Questions]

A series of small stock premium studies have been developed by Roger Grabowski and David King. They use eight different measures of size for two major groups (Equity size and Company size). Which of the following is/are measure/s of company size?

AMarket value of common equity

BBook value of common equity

CMarket value of invested capital

DNumber of employees

Show Suggested Answer

Suggested Answer: B

by Lili at Jul 05, 2024, 08:59 AM

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Becky

3 months ago

I dunno, I think they should add 'number of coffee breaks per day' as a measure of company size. That'd be a real accurate representation, don't you think?

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Hermila

3 months ago

Well, if we're talking about company size, I guess you could also use the size of the CEO's corner office as a measurement. That's gotta be a reliable indicator, right?

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Honey

1 months ago

D) Number of employees

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Andra

2 months ago

C) Market value of invested capital

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Noelia

2 months ago

B) Book value of common equity

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Dottie

2 months ago

A) Market value of common equity

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Ling

3 months ago

Haha, classic exam question trying to trick us. I bet the answer is D - number of employees. That's the only one that truly represents the 'size' of a company, right?

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Eleonora

2 months ago

Definitely, number of employees can vary widely between companies, so it might not be the best measure of size.

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Isadora

2 months ago

Yeah, I agree with you. Market value of common equity makes more sense in determining the size of a company.

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Leoma

2 months ago

I think it's actually A) Market value of common equity. That seems more relevant to the size of a company.

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Yan

2 months ago

D) Number of employees

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Hyman

2 months ago

C) Market value of invested capital

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Jarod

2 months ago

B) Book value of common equity

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Daisy

3 months ago

A) Market value of common equity

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Francesco

3 months ago

Wait, what? I thought all of these were measures of company size. This is trickier than I thought. I'm going to have to think this through carefully.

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Roslyn

2 months ago

D) Number of employees

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Enola

3 months ago

C) Market value of invested capital

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Esteban

3 months ago

B) Book value of common equity

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Lorrie

3 months ago

A) Market value of common equity

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Aja

4 months ago

Oh, this is easy. A and B are the measures of equity size, not company size. I'm pretty sure the correct answers are C and D.

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Lea

2 months ago

So the correct answers for company size measures are C and D.

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Britt

3 months ago

D is also a measure of company size, it represents the number of employees.

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Mona

3 months ago

I agree, C is the market value of invested capital.

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Shad

3 months ago

I think C is a measure of company size.

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Lajuana

4 months ago

Okay, let's see. Company size measures, hmm... I think C and D are the correct answers here. Market value of invested capital and number of employees seem like good indicators of company size.

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