NACVA Exam CVA Topic 6 Question 94 Discussion

Actual exam question for NACVA's CVA exam

Question #: 94
Topic #: 6

[All CVA Questions]

It is advisable to emphasize that in the valuation of the stock of closely held corporations or the stock of corporations where market quotations are either lacking or too scarce to be recognized, all available financial data, as well as all relevant factors affecting the market value should be considered. The following factors, although not all---inclusive are fundamental and require careful analysis in each case EXCEPT:

AThe nature of the business and the history of the enterprise from its inception

BThe economic outlook in general and the condition and outlook of the specific industry in particular

CThe earning capacity of the company

DThe income-tax paying capacity of the company

Show Suggested Answer

Suggested Answer: A

by Reid at Aug 27, 2024, 08:28 PM

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Lenna

5 days ago

I disagree. I believe that the income-tax paying capacity of the company is important as it affects the company's profitability and cash flow.

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Mattie

6 days ago

I agree with Nan. The income-tax paying capacity is not a factor that should be considered in the valuation of a company's stock.

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Nan

8 days ago

I think the answer is D) The income-tax paying capacity of the company.

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