Which of the following is not generally considered a valuation method?
A. Discounted cash flow method
B. Comparable companies’ method
C. Share exchange ratio method
D. Liquidation value method
E. Comparable transaction's method
查看答案
Which of the following represent advantages of the comparable companies' valuation method?
A. Uses the most accurate market-based valuation at a point in time
B. Valuations need to be adjusted to reflect control premiums
C. Adjusts for risk of future cash flows
D. Adjusts for the timing of future cash flows
E. A & B only
Intangible assets often constitute a substantial source of value to the acquiring firm. Which of the following are not generally considered intangible assets?
A. Patents and technical know-how
B. Warranty and contingent claims
C. Trademarks and customer lists
D. Covenants not to compete and franchises
E. Copyrights and software
Which of the following is not true about the liquidation/break-up valuation methods?
A. Highly diversified companies are often valued in terms of the sum of the standalone values of their operating units
B. The calculation of such values is heavily dependent on the skill of appraisers who are intimately familiar with the operations to be liquidated.
C. Assets can sometimes be liquidated in an orderly fashion.
D. Legal, appraisal, and consulting fees may comprise a substantial share of the total proceeds of the sale of the assets
E. a. The liquidation value of most of the firm’s assets is about the same.
The tangible book value or equity per share method is applicable primarily to the following industries:
A. Steel and financial services
B. Distribution and financial services
C. Electric and natural gas utilities
D. Coal and copper mining
E. Space and defense