NACVA Certified Valuation Analyst Set 2

Recapitalizations involving debt securities may be undertaken for a variety of reasons. One common reason is:

____________________ are defined as the sum of the market value of total liabilities divide by the aggregate liquidation value of the preferred stock.

Qualitative factors might also cause the required yield to be higher or lower than that based solely on the quantitative ratio analysis. Whish of the following is NOT out of such quantitative factors?

Factors affecting the value of preferred stock are all of the following EXCEPT:

If a $1000 per share value of convertible bond is issued for $1000, and is convertible into 20 shares of issuer's common stock that pays no dividend, there will be no economic benefit in converting the debt to stock as long as the common stock is selling for:

An interesting form of debt security, known as _________________, allows the issuer to avoid paying cash to the debt holder for interest prior to the debt's maturity.
The only cash payment from the debt issuer comes at maturity, when the debt's face value is repaid to security holder.

The special characteristics of the preferred stock that we typically encounter include all of the following EXCEPT:
 

The FASB says that, for "unobservable inputs," the valuation should include market participant assumptions about risk, even if this adjustment is different to determine. Interestingly, it breaks risk into following categories EXCEPT:

Three levels are identified by ____________ in the hierarchy of measurements to identify fair value, with the highest level available to be used. These levels are; highest-priority level, inputs are those other than quoted prices included within level 1 that are directly or indirectly observable and Level 3 where inputs are unobservable.

In case of valuation of family law courts, in fact, courts often mix standards of value with valuation methods. For example, one opinion recognized "fair acceptable methods" for valuing goodwill on the basis of: