1)

The primary difference between a discount rate and a capitalization rate is how the discount rate (method) addresses

(A) Growth

(B) Cash flow vs. earnings

(C) terminal value

(D) Pretax vs. after-tax earnin

2)

Which of the following would not require a normalization entry?

(A) Excess owners compensation

(B) An extraordinary item

(C) The selling of a discounted business segment

(D) An arm's length relative party transaction

3)

You calculate a closely held company

(A) Using the same techniques and methods as a publicly held company

(B) Using the CAPM model

(C) Differently than a publicly held company

(D) By calculating Beta

4)

Which statement is true?

(A) A closely held company usually does not require normalization entries

(B) Requires trend analysis to help determine a capitalization rate

(C) Capitalization rates and discounts rates are exactly the same

(D) Valuation uses only the last year's revenue to determine future revenue

5)

Which statement is false?

(A) It would be useful to ascertain the future economic forecast

(B) You should examine related party transaction more closely than most other transactions

(C) Closely held sister companies are generally more risky in a valuation engagement

(D) All of the above