MENU
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?
Suggested Answer: B
Get Premium CVA Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
46 comments · newest first
CL
Clorinda
11 months ago
Wait, are we really considering the number of employees as a size measure? Sounds off!
TE
Teri
11 months ago
I agree, market value of invested capital is a solid measure!
GA
Gayla
11 months ago
Number of employees? Not sure if that really reflects company size.
GE
Georgene
12 months ago
I think book value of common equity counts too!
CR
Cristina
12 months ago
Market value of common equity is definitely a measure of company size.
DE
Deeann
1 year ago
I’m a bit uncertain about the number of employees; it seems like it could relate to size, but is it really a standard measure?
LA
Lashawna
1 year ago
I practiced a similar question last week, and I believe market value of invested capital is definitely a measure of company size.
ED
Edna
1 year ago
I think book value of common equity might also be considered a measure of company size, but I need to double-check that.
LE
Leslie
1 year ago
I remember that market value of common equity is often used as a measure of company size, but I'm not sure about the others.
DO
Dorian
1 year ago
Ah, I see. The question is asking specifically about measures of company size, not just equity size. I think the number of employees would be a good indicator of overall company size, so I'll mark that one.
BR
Brande
1 year ago
Hmm, I'm still a bit unsure about the market value of invested capital. I know that's a measure of the total value of the company, but I'm not sure if it's considered a "size" measure. I'll have to think about that one a bit more.
TE
Tegan
1 year ago
Hmm, this seems like a straightforward question about different measures of company size. I think I've got a good handle on this topic, so I'll carefully review each option.
LY
Lyndia
1 year ago
Alright, I remember discussing these size measures in class. I'm pretty sure market value of common equity and book value of common equity are measures of equity size, not company size. I'll have to think carefully about the other options.
AL
Alline
1 year ago
I'm pretty confident about this one. The CUIC database stores users, roles, permissions, and report templates, so B is definitely correct. And C is also true, since you can control the database purge schedule.
WA
Walker
1 year ago
This seems pretty straightforward. I'd focus on having clear policies around data retention and access controls to be prepared for these types of requests.
GE
Gerald
1 year ago
This seems like a straightforward question about capacity planning. I'll need to carefully read through the options to determine which one best matches the purpose described.
BE
Becky
1 year 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?
HE
Hermila
1 year 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?
HO
Honey
1 year ago
D) Number of employees
AN
Andra
1 year ago
C) Market value of invested capital
NO
Noelia
1 year ago
B) Book value of common equity
DO
Dottie
1 year ago
A) Market value of common equity
LI
Ling
1 year 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?
EL
Eleonora
1 year ago
Definitely, number of employees can vary widely between companies, so it might not be the best measure of size.
IS
Isadora
1 year ago
Yeah, I agree with you. Market value of common equity makes more sense in determining the size of a company.
LE
Leoma
1 year ago
I think it's actually A) Market value of common equity. That seems more relevant to the size of a company.
YA
Yan
1 year ago
D) Number of employees
HY
Hyman
1 year ago
C) Market value of invested capital
JA
Jarod
1 year ago
B) Book value of common equity
DA
Daisy
1 year ago
A) Market value of common equity
FR
Francesco
1 year 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.
RO
Roslyn
1 year ago
D) Number of employees
EN
Enola
1 year ago
C) Market value of invested capital
ES
Esteban
1 year ago
B) Book value of common equity
LO
Lorrie
1 year ago
A) Market value of common equity
AJ
Aja
2 years 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.
LE
Lea
1 year ago
So the correct answers for company size measures are C and D.
BR
Britt
1 year ago
D is also a measure of company size, it represents the number of employees.
MO
Mona
1 year ago
I agree, C is the market value of invested capital.
SH
Shad
1 year ago
I think C is a measure of company size.
LA
Lajuana
2 years 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.
SH
Sherly
1 year ago
I think book value of common equity could also be a measure of company size.
AR
Aron
1 year ago
I agree, market value of invested capital and number of employees are good indicators of company size.
CL
Clarence
2 years ago
I believe market value of invested capital could also be a measure of company size.
LY
Lynda
2 years ago
I agree with Santos, market value of common equity seems like a good measure of company size.
SA
Santos
2 years ago
I think the measure of company size could be market value of common equity.