EXAM CODE $03$

C$.$ net profit margin has decreased but its financial leverage has increased.

D$.$ net profit margin has increased but its financial leverage has decreased.

$17.$ The most probable price a property should be bought in a competitive and open market under all conditions necessary to a fair sale, where all buyers and sellers act prudently and knowledgeably and the price is not affected by undue stimulus is known as

A$.$ market value

B$.$ fair market value

C$.$ intrinsic value

D$.$ investment value

$18.$ Which of the following is the right sequence in the valuation process?

A$.$ Understanding business, forecasting company performance, selecting valuation model, converting forecast to valuation and preparing research report.

B$.$ Forecasting company performance, understanding business, selecting valuation model, converting forecast to valuation and preparing research report.

C$.$ Selecting valuation model, forecasting company performance, understanding business, converting forecast to valuation and preparing research report.

D$.$ Converting forecast to valuation and preparing research report, forecasting company performance, understanding business, selecting valuation model.

$19.$ Where analyst revisit assumptions after valuation in an attempt to get a value closer to what they expected to obtain is known as

A$.$ post$-$valuation tinkering

B$.$ post$-$valuation auditing

C$.$ pre$-$valuation validating

D$.$ valuation biases