CBV Exam Questions & Answers 2024/2025

CBV Exam Questions & Answers 2024/2025 What are the Three valuation approaches - ANSWERSMarket, Income and Asset (Cost) Capitalization Rate is Equal to - ANSWERSDiscount Rate minus Growth The Typical LTGR assumed - ANSWERS3 to 5 percent Terminal Year Cash Flow is calculated as - ANSWERSLast Projection Year Cash flow multiplied by 1 + LTGR Terminal Gross Value is equal - ANSWERSTerminal Year Cash Flow divided by Capitalization Rate (Percent) Terminal Value Present Value - ANSWERSTerminal Gross Value multiplied by PVF Present Value Factor - ANSWERS1 / (1 + k) ^ n Terminal Value: Capitalization of NCF Should NOT be used when: - ANSWERSThe fortunes of the a business are declining and expected to do so. Exit or Liquidation value preferred. How do you calculate the percent of Total Value contributed by the Terminal Value - ANSWERSTerminal Value / Total Value Define the Relationship between Value and Rates of Return - ANSWERSInverse but NOT linear Discount Rate Definition - ANSWERSA rate of return used to convert a monetary sum, payable or receivable in the future, into a present value