<<12345678910111213141516171819202122232425262728293031323334353637383940>> 1. What is the book value of a company derived from?Cash flow statementsIncome statementsBalance SheetStatement of retained earningsQuestion 1 of 40 2. Market value of a company is defined by:Multiplying book value by market priceNumber of outstanding shares multiplied by share priceTotal assets minus total liabilitiesDividing market price by book valueQuestion 2 of 40 3. Which approach involves comparing a company's financial metrics to similar metrics of other companies in the same industry?Market approachIncome approachCost approachMarket Capitalization methodQuestion 3 of 40 4. What does the income approach in valuation determine?Market worth through analysisFuture earnings or cash flowsFair Market Value of assetsFMV of net assetsQuestion 4 of 40 5. The cost approach is most beneficial for:Tech startupsAsset-intensive businessesService-based companiesFinancial institutionsQuestion 5 of 40 6. Market Capitalization method calculates a company's value based on:Future cash flowsCurrent stock price and total outstanding sharesNet assetsMarket analysisQuestion 6 of 40 7. What is calculated by dividing the stock price by earnings per share?Market CapitalizationPrice-to-Book ratioPrice-to-Earnings ratioPrice-to-Sales ratioQuestion 7 of 40 8. Which valuation method is considered theoretically sound due to estimating future cash flows?Market CapitalizationEarnings MultiplesDiscounted Cash FlowComparable Transactions AnalysisQuestion 8 of 40 9. Comparable Companies Analysis (CC(a) is useful for:Valuing startupsValuing private companiesValuing mature companiesValuing conglomeratesQuestion 9 of 40 10. What does Comparable Transactions Analysis (CT(a) consider?Market trendsPast transactions of a companyRecent mergers, acquisitions, or transactionsCompany's historical dataQuestion 10 of 40 11. Assets Based Valuation Method includes:Only tangible assetsOnly intangible assetsBoth tangible and intangible assetsFinancial assets onlyQuestion 11 of 40 12. Liquidation Valuation Method is used when a company:Is financially successfulIs in financial distressHas a high market capitalizationHas strong future projectionsQuestion 12 of 40 13. Which valuation method is applicable to startups with complex capital structures?DCFLiquidation ValuationMarket CapitalizationOption Pricing ModelQuestion 13 of 40 14. In valuation, book value is derived from:Cash flow statementIncome statementBalance sheetStatement of retained earningsQuestion 14 of 40 15. What does market value represent?Total assets minus liabilitiesOutstanding shares multiplied by share priceBook value multiplied by market priceTotal earnings per shareQuestion 15 of 40 16. The income approach in valuation focuses on:Comparing financial metrics to industry standardsDetermining the present value of expected future earningsAssessing the value of tangible assetsEstimating market capitalizationQuestion 16 of 40 17. Which method values a company based on its net assets?Cost approachLiquidation valuationComparable transactions analysisMarket capitalization methodQuestion 17 of 40 18. Which valuation method is considered beneficial for asset-intensive businesses?Discounted Cash FlowComparable Companies AnalysisAssets Based ValuationEarnings MultiplesQuestion 18 of 40 19. Market capitalization is calculated by:Future cash flowsCurrent stock price multiplied by outstanding sharesNet tangible assetsComparable companies' financial metricsQuestion 19 of 40 20. What does the Price-to-Earnings (P/E) ratio compare?Stock price to book valueStock price to earnings per shareEarnings to dividendsDividends to stock priceQuestion 20 of 40 21. What is the core principle behind the Discounted Cash Flow method?Comparing companies in the same industryEstimating future cash flows and discounting them to present valueDetermining asset-based valueAnalyzing recent transactionsQuestion 21 of 40 22. Which analysis compares a target company with publicly traded peers in the same industry?Comparable Transactions AnalysisLiquidation ValuationComparable Companies AnalysisOption Pricing ModelQuestion 22 of 40 23. When is the Liquidation Valuation Method typically used?When a company is in financial prosperityWhen a company is in financial distressWhen a company is expanding rapidlyWhen a company has high market capitalizationQuestion 23 of 40 24. Which valuation method is particularly applicable to companies with complex capital structures?Comparable Transactions AnalysisDiscounted Cash FlowLiquidation ValuationOption Pricing ModelQuestion 24 of 40 25. What determines the book value of a company?Income statementsCash flow statementsBalance sheetRetained earnings statementQuestion 25 of 40 26. Market value of a company is primarily based on:Future projectionsEarnings per shareOutstanding shares multiplied by share priceTangible assets onlyQuestion 26 of 40 27. The income approach in valuation focuses on:Assessing tangible assetsDetermining present value of future earningsComparing companies in the same industryEstimating market capitalizationQuestion 27 of 40 28. Which method values a company based on its net assets?Cost approachLiquidation valuationComparable transactions analysisMarket capitalization methodQuestion 28 of 40 29. Which valuation method is beneficial for asset-intensive businesses?Discounted Cash FlowComparable Companies AnalysisAssets Based ValuationEarnings MultiplesQuestion 29 of 40 30. Market capitalization is calculated by:Future cash flowsCurrent stock price multiplied by outstanding sharesNet tangible assetsComparable companies' financial metricsQuestion 30 of 40 31. What does the Price-to-Earnings (P/E) ratio compare?Stock price to book valueStock price to earnings per shareEarnings to dividendsDividends to stock priceQuestion 31 of 40 32. What is the core principle behind the Discounted Cash Flow method?Comparing companies in the same industryEstimating future cash flows and discounting them to present valueDetermining asset-based valueAnalyzing recent transactionsQuestion 32 of 40 33. Which analysis compares a target company with publicly traded peers in the same industry?Comparable Transactions AnalysisLiquidation ValuationComparable Companies AnalysisOption Pricing ModelQuestion 33 of 40 34. When is the Liquidation Valuation Method typically used?When a company is in financial prosperityWhen a company is in financial distressWhen a company is expanding rapidlyWhen a company has high market capitalizationQuestion 34 of 40 35. Which valuation method is particularly applicable to companies with complex capital structures?Comparable Transactions AnalysisDiscounted Cash FlowLiquidation ValuationOption Pricing ModelQuestion 35 of 40 36. What determines the book value of a company?Income statementsCash flow statementsBalance sheetRetained earnings statementQuestion 36 of 40 37. Market value of a company is primarily based on:Future projectionsEarnings per shareOutstanding shares multiplied by share priceTangible assets onlyQuestion 37 of 40 38. The income approach in valuation focuses on:Assessing tangible assetsDetermining present value of future earningsComparing companies in the same industryEstimating market capitalizationQuestion 38 of 40 39. Which method values a company based on its net assets?Cost approachLiquidation valuationComparable transactions analysisMarket capitalization methodQuestion 39 of 40 40. Which valuation method is beneficial for asset-intensive businesses?Discounted Cash FlowComparable Companies AnalysisAssets Based ValuationEarnings MultiplesQuestion 40 of 40 Loading...