Question: 1.The following methods are NOT income-based valuation technique except: * a. Economic Value Added, Capitalizing of earnings method and discounted cash flow method. b. Economic

1.The following methods are NOT income-based valuation technique except: *

a. Economic Value Added, Capitalizing of earnings method and discounted cash flow method.

b. Economic Value Added, Discounted cash flow and revenue approach.

c .Economic Value Added, Capitalizing past earnings and discounted cash flows.

d. Economic Value Added, Capitalizing current earnings and discounted earnings.

2. The following statements are factual discussions about Capitalization of Earnings Method EXCEPT: *

a. The formula used in Capitalization of Earnings is actually grossing up the future earnings using capitalization rate come up with the estimated asset value.

b. Cost of Capital used in Capitalization of Earnings method is equivalent to the expected yield or the required rate if return.

c. You may use past earnings in the Capitalization of Earnings method for cases wherein earnings are fixed.

d. In capitalization of earnings method, the value of the asset or the investment is determined using the anticipated earnings of the company divided by the cost of capital.

3. This component of audited financial statements is used to determine the book value of the assets and the disclosed stakes of debt and equity financers. *

a. Statement of Financial Position.

b. Statement of Income.

c. Notes to Financial Statements.

d. Statement of Stockholder's Equity

4. This item represents the net investment in current assets like receivables and inventory reduced by current liabilities. *

a.Investment in shareholder capital.

b. Investment in operating capital

c. Investment in marketable securities.

d. Investment in fixed capital.

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