NACVA CVA Exam - 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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Clorinda

3 months ago

Wait, are we really considering the number of employees as a size measure? Sounds off!

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Teri

4 months ago

I agree, market value of invested capital is a solid measure!

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Gayla

4 months ago

Number of employees? Not sure if that really reflects company size.

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Georgene

4 months ago

I think book value of common equity counts too!

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Cristina

4 months ago

Market value of common equity is definitely a measure of company size.

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Deeann

5 months 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?

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Lashawna

5 months ago

I practiced a similar question last week, and I believe market value of invested capital is definitely a measure of company size.

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Edna

5 months ago

I think book value of common equity might also be considered a measure of company size, but I need to double-check that.

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Leslie

5 months 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.

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Dorian

5 months 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.

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Brande

5 months 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.

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Tegan

5 months 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.

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Lyndia

5 months 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.

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Alline

5 months 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.

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Walker

5 months 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.

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Gerald

5 months 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.

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Becky

10 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

10 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

8 months ago

D) Number of employees

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Andra

8 months ago

C) Market value of invested capital

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Noelia

9 months ago

B) Book value of common equity

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Dottie

9 months ago

A) Market value of common equity

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Ling

10 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

8 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

8 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

9 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

9 months ago

D) Number of employees

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Hyman

9 months ago

C) Market value of invested capital

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Jarod

9 months ago

B) Book value of common equity

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Daisy

9 months ago

A) Market value of common equity

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Francesco

10 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

9 months ago

D) Number of employees

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Enola

9 months ago

C) Market value of invested capital

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Esteban

10 months ago

B) Book value of common equity

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Lorrie

10 months ago

A) Market value of common equity

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Aja

11 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

9 months ago

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

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Britt

9 months ago

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

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Mona

10 months ago

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

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Shad

10 months ago

I think C is a measure of company size.

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Lajuana

11 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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