NACVA Certified Valuation Analyst Set 4

______________ is defined as the sum of cash and cash equivalents plus receivables (usually all current assets listed above inventory) divided by current liabilities.
For most companies, the only other significant current asset is inventory usually the slowest of the current assets is to be converted to cash.

The purpose of risk analysis is to ascertain the uncertainty of the income flows to the company's various suppliers. Generally, there are two classes of the capital suppliers those that provide equity capital and receive a fixed return and those:

It is possible to examine the uncertainty of income to the various suppliers of capital by investigating the uncertainty of income to the company. The greater the uncertainty of income to the company:

In measuring the business risk, for many companies, sales volatility is the most important determinant of the fluctuation of net income measured by the standard deviation. Although companies may have some control over annual sales volume, sales volatility is, to a considerable extent, a function of the:

Some judicial circuits use a multifactor test to determine whether compensation is reasonable or excessive. For example, the Ninth Circuit has used a five-factor test. Which of the following is out of those factors?

The capital asset pricing model is part of a larger body of economic theory known as capital market theory. Capital market theory also includes:

_____________________ is the uncertainty of future returns resulting from the sensitivity of the return on the subject investment to movements in the return on the investment market as a whole.

The fundamental of CAPM is:

Beta is a factor used to measure:
 

It is possible (although not very common) for a security to have a negative beta (i.e. a beta less than zero). Such a beta would indicate that: