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标题: Reading 35: Equity Valuation: Applications and Processes-LOS [打印本页]

作者: 土豆妮    时间: 2011-3-17 11:57     标题: [2011]Session 10-Reading 35: Equity Valuation: Applications and Processes-LOS

Session 10: Equity Valuation: Valuation Concepts
Reading 35: Equity Valuation: Applications and Processes

LOS c: Discuss the uses of equity valuation.

 

 

An analyst performing an asset valuation to detect investor’s expectations about the future value of the variables that affect a stock’s price is most likely using the valuation for:

A)
reading the market.
B)
generating a fairness opinion.
C)
projecting the value of corporate actions.


 

Asset valuation has many uses including stock selection, reading the market, projecting the value of corporate actions, issuing fairness opinions, and valuing private businesses. Reading the market entails detecting investor’s expectations about the future value of the variables that affect a stock’s price.


作者: 土豆妮    时间: 2011-3-17 12:02

Which of the following is least likely a use of equity valuation?

A)
Projecting the value of corporate actions.
B)
Issuing fairness opinions.
C)
Assessing Corporate governance.


Equity valuation has many uses including stock selection, reading the market, projecting the value of corporate actions, issuing fairness opinions, and valuing private businesses. Equity valuation is not specifically related to corporate governance.


作者: 土豆妮    时间: 2011-3-17 12:02

Minority shareholders often do not have control of the price at which the firm will be sold or merged with another firm. In order to safeguard their interests, minority shareholders will often seek an analyst’s opinion of the value of the firm. This opinion is referred to as a:

A)
second opinion.
B)
fairness opinion.
C)
minority opinion.


Minority shareholders are often dependent upon an analyst's opinion about the fairness of a price to be received. Hence the term fairness opinion.


作者: 土豆妮    时间: 2011-3-17 12:02

Which of the following is NOT a use of asset valuation?

A)
Estimating inflation rates.
B)
Projecting the value of corporate actions.
C)
Issuing fairness opinions.


Asset valuation has many uses including stock selection, reading the market, projecting the value of corporate actions, issuing fairness opinions, and valuing private businesses. Asset valuation is not used to project inflation rates.






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