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IFPUG Accredited in Business Valuation (ABV) Sample Questions:
1. The special characteristics of the preferred stock that we typically encounter include all of the following EXCEPT:
A) Liquidation preference
B) Cumulative versus noncumulative dividends
C) Dividend rate
D) Convertible versus nonconvertible rights into preferred equity
2. The in perpetuity for cash flow translates point for point into the capitalization rate for that variable.
A) Actual growth rate
B) Expected growth rate
C) Revenue growth rate
D) Relative growth rate
3. The analyst will begin which process of revaluing each of the asset accounts and, if necessary, each of the liability accounts?
A) Accounting process
B) Qualitative process
C) Quantitative process
D) Business process
4. Which of the following is the most frequently encountered reason for needing to value debt securities?
A) Purchase or sale for cash
B) All of the above
C) Allocating total enterprise value among classes of securities in a leveraged buyout, recapitalization (including tax-free reorganizations), or bankruptcy reorganization
D) Exchange of equity for debt, or vice versa
5. is a specialized classification of intangible and its categories are creative
(e.g.
copyrights) and innovative (e.g. patents).
A) Intellectual rights
B) Intellectual capital
C) Both A & B
D) Intellectual properties
Solutions:
Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: D |