Which of the following would most likely be useful for performing sensitivity analysis of business valuation? a) Standard of Value b) Understanding of Business c) Premise of Value d) Audit Opinion

Which of the following would most likely be useful for performing sensitivity analysis
of business valuation?
a) Standard of Value
b) Understanding of Business
c) Premise of Value
d) Audit Opinion
by

1 Answer

Answer :

b) Understanding of Business
by

Related questions

Which of the following valuation methods would most likely not be used for business valuation? a) Discounted Cash Flow b) Net Assets Method c) Multi-period Excess Earning Method d) Industry Price Earnings Ratio

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Last Answer : c) Rs.200 crore

During a merger and acquisition transaction, the ability to find and use good comparable data for a valuation is relatively ____________. a) easy because each successful company within an industry uses the same ratios b) easy because public stock price fluctuation is not sufficient or erratic enough to make a difference c) difficult because book value is adjusted in small companies as FIFO is the method of choice and in public companies’ book value is static due to LIFO d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued

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Last Answer : d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued

The credit default spread method of valuation of a guarantee given by a parent company on behalf of its subsidiary involves estimating the value ____________. a) using credit default spread based on the credit rating of the subsidiary b) using credit default spread based on the credit rating of the guarantor c) based on probability of default d) of the guarantee using an option pricing model

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Last Answer : a) using credit default spread based on the credit rating of the subsidiary

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Last Answer : a) Rs.1.20 crore

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Last Answer : c) 102.67

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Last Answer : d) Debt Equity ratio

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Last Answer : b) market value of debt

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Description : An analyst is valuing a firm's equity using the ‘Enterprise Value to Revenue Ratio’ of similar firms. Which of the following is not a factor that the analyst should use? a) Revenue growth b) EBITDA margins

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Last Answer : b) Rs.1389

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