1. (TCO G) A valuation professional who holds a CVA has the credentials of a: (Points : 2) Continuous valuation analyst.
Cost valuation of assets.
x Certified valuation analyst.
None of the above is correct

2. (TCO G) If a shareholder in a closely held business sells his or her stock, the valuation professional typically would: (Points : 2) Increase the value somewhat to get the minority owner out of the business. Do a standard professional valuation in which the minority interest issue is ignored. x Discount the value somewhat to reflect the diminished value of being a minority interest holder. Always use a historical cost basis analysis to take conservatism into account. None of the above is correct.

3. (TCO G) The most commonly accepted methods of business valuation use some form of: (Points : 2) Balance sheet analysis.
Historical cost basis.
Book value method.
x Income statement approach.

4. (TCO G) The conclusions presented in FASB No. 157 support which FASB Conceptual Framework? (Points : 2) FASB Conceptual Framework No. 2
FASB Conceptual Framework No. 6
FASB Conceptual Framework No. 7
x All of the above
None of the above

5. (TCO G) The major business valuation organization that has developed rigorous business valuation standards is: (Points : 2) The National Association of Business Valuation Analysts (NACVA) The American Society of Appraisers (ASA)

The Institute of Business Appraisers, Inc. (IBA)
x All of the above
None of the above

6. (TCO G) In a typical business valuation report, one exhibit that is seldom used is: (Points : 2) Limiting conditions.
Definitions of valuation terms.
Ratio analysis of the company.
Common size balance sheets of the company.
x None of...

...Week7Homework
Mohamed E. Abdelrahman
Prof: James Glenn
International Finance FIN: 535
Strayer University
Spring 2013
15. DFI Strategy:
A. What comparative advantage does JCPenney have when establishing a store in a foreign country, relative to an independent variety store?
B. Why might the overall risk of JCPenney decrease or increase as a result of its recent global expansion?
C. JCPenney has been more cautious about entering China. Explain the potential obstacles associated with entering China.
ANSWER:
A. J.C. Penney has name recognition, which could result in customer trust, and therefore a
stronger demand for its products. It also has marketing expertise that it applies to each store. It
also has economies of scale, because it could buy its products in bulk and distribute the products
to the stores that need those products.
B. Its risk may decrease because it has a strategy that allows it to utilize its expertise, while
relying on foreign expertise for part of the business that requires knowledge about foreign
cultures. Also, it has created more international diversification by spreading its store throughout
more foreign markets, so that its overall performance is not as heavily influenced by U.S.
economic conditions.
Its risk could have increased if it selected local partners in the foreign countries that do not
properly apply their knowledge of the local...

...Math 221
Quiz Review for Weeks 5 and 6
1. Find the area under the standard normal curve between z = 1.6 and z = 2.6.
First we look for the area of both by doing “2nd ,Vars, NORMALCDF” and inputting “-1000, “Z,” 0, 1 then find the difference between both.
2. A business wants to estimate the true mean annual income of its customers. It randomly samples 220 of its customers. The mean annual income was $61,400 with a standard deviation of $2,200. Find a 95% confidence interval for the true mean annual income of the business’ customers.
First we find E by doing Zc(standard deviation/square root of number of trials.) Now we add and subtract that number from the mean income to find both endpoints. The Zc of 95% is 1.96 so we would do 1.96((2200)/square root of 220) giving us 290.71. Now if we subtract that from the mean income, we get 61109.29 as the left endpoint and 61690.71 as the right endpoint.
3. IQ test scores are normally distributed with a mean of 100 and a standard deviation of 15. An individual's IQ score is found to be 120. Find the z-score corresponding to this value. “X-mean/standard deviation. (120-100)/15
4. Two high school students took equivalent language tests, one in German and one in French. The student taking the German test, for which the mean was 66 and the standard deviation was 8, scored an 82, while the student taking the French test, for which the mean was 27 and the standard deviation was 5, scored a 35. Compare...

...Week7 MA 3110 11/5/2012
Pg. 485
Q: 8
Number in group 129 805 n's
Number experiencing insomnia 19 13 x's
a= 0.05 (a) p-bar= (x1+x2)/(n1 + n2) 0.034261242
n1 = 129 (b) z= (p-hat diff)/sqrt(p-bar*q-bar*(1/n1+1/n2)) 7.601787316
n2 = 805 q-hat's (c) za/2 = ± 1.96
p1-hat= 0.147286822 0.852713178 (d) P-value= 2.93099E-14
p2-hat= 0.016149068 0.983850932
Q: 10
(a) E= 0.06177357 OR using the table value
(b) 0.069364183 µ2 claim
n1 = 25 t= (x-bar diff)/sqrt(s1^2/n1+s2^2/n2) 8.074687922
n2 = 25 P-value= 1.33814E-08
x1-bar= 21.1
x2-bar= 13.2
s1= 3.2
s2= 3.7
"Reject Ho; there is sufficient evidence to conclude that μ1 – μ2 > 0. There is sufficient evidence to support the claim that unfiltered king size cigarettes have a mean tar content greater than that of filtered 100 mm cigarettes. The results suggest that filters are effective in reducing the tar content in cigarettes.
"
Pg. 500
Q: 19
H0: m1 = m2
H1: m1 ≠ m2
a= 0.05 ta/2= 2.063898562
n1 = 25 t = -0.721387321 ABS= 0.721
n2 = 25 P-value = 0.477874634
x1-bar= 0.87
x2-bar= 0.92...

...TCO 1) What is the purpose behind the five primary activities in the value chain?
First, info flow diagrams and flowcharts argon the two most much utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most frequently used development and documentation tools used today. Second, since systems development is extremely complex, DFDs and flowcharts are tools that are used to create order from chaos and complexity.| |
TCO 1) Name two reasons why it is important to have a working knowledge of DFDs and flowcharting. (Points TCO 1) Name two reasons why it is important to have a working knowledge of DFDs and flowcharting. (Points
The flow diagram and the flowcharts are the two more common systems use. Also when it comes to the system development they can get very complex meaning that the DFD and the flowchart are tools that can be used to create order form chaos and complexity.
TCO 1) What is the purpose behind the five primary activities in the value chain?
First, info flow diagrams and flowcharts argon the two most much utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from...

...DOWNLOAD
MAT540 Week 3 Homework
Chapter 14
1. The Hoylake Rescue Squad receives an emergency call every 1, 2, 3, 4, 5, or 6 hours, according to the following probability distribution. The squad is on duty 24 hours per day, 7 days per week:
Time Between
Emergency Calls (hr.)
Probability
1
0.05
2
0.10
3
0.30
4
0.30
5
0.20
6
0.05
1.00
a. Simulate the emergency calls for 3 days (note that this will require a “running”, or cumulative, hourly clock), using the random number table.
b. Compute the average time between calls and compare this value with the expected value of the time between calls from the probability distribution. Why are the results different?
2. The time between arrivals of cars at the Petroco Service Station is defined by the following probability distribution:
Time Between
Arrivals (min.)
Probability
1
0.15
2
0.30
3
0.40
4
0.15
1.00
a. Simulate the arrival of cars at the service station for 20 arrivals and compute the average time between arrivals.
b. Simulate the arrival of cars at the service station for 1 hour, using a different stream of random numbers from those used in (a) and compute the average time between arrivals.
c. Compare the results obtained in (a) and (b).
3. The Dynaco Manufacturing Company produces a product in a process consisting of operations of five machines. The probability distribution of the...

...A. 1. Net Operating Profit after Taxes (Operating Income x (1-Tax Rate) NOPAT for 2011 = 108.6 (1-.40) =$65.16
2. Net Operating Working Capital for 2011 is calculated through Taking your Current Assets less – Non-Interest Bearing Current Liabilities NOWC for 2011 = ($5.6 + $56.2 + $112.4) – ($11.2 + $28.1) = $134.9 million.
3. Net Capital for 2011 is calculated the sum of NOWC (already shown as) 134.9 million + Net Fixed Assets (2011 Projected PP&E) of 397.5 = Net Capital for 2011 of = $134.9 + $397.5 = $532.4 million.
4. Free Cash Flow for 2011 is obtained through NOPAT less – Investment in Capital = $65.16 – ($532.4 - $502.2) = $65.16 - $30.2 = $34.96 million is the Free Cash Flow as of 12/31/2011.
B. Page 547 of the text states that terminal, or horizon, value is the value of operations at the end of the explicit forecast period. It is also called the continuing value, and it is equal to the present value of all free cash flows beyond the forecast period, discounted back to the end of the forecast period at the weighted average cost of capital.
HV is = to Free Cash Flow for 2011 = 34.96 * Growth Rate of 6% / Weighted Average Cost of Capital 11% less – the growth rate of 6%.
HV for 2011 = [$34.96(1.06)]/ (0.11-0.06) = $741.152 million is the Horizon Value on 12/31/2011.
C. Value of operations is the present value of all the future free cash flows expected from operations when discounted at the weighted average cost of capital, and is expressed as:...

...2/10, n/30. Payment was made within the discount period and Yocum was given a $2,000 cash discount. Yocum paid $5,000 sales tax on the equipment, and paid installation charges of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?
$104,760
$108,760
$110,760
$101,000
A company purchased factory equipment for $350,000. It is estimated that the equipment will have a $35,000 salvage value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be
$84,000.
$140,000.
$126,000.
$60,480.
7-
Multiple Choice Question 175
On a balance sheet, natural resources may be described more specifically as all of the following except
oil reserves.
timberlands.
land improvements.
mineral deposits.
On January 1, 2013, Donahue Company, a calendar-year company, issued $500,000 of notes payable, of which $125,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2013, is
Current Liabilities, $125,000; Long-term Debt, $375,000.
Current Liabilities, $375,000; Long-term Debt, $125,000.
Current Liabilities, $500,000.
Long-term Debt , $500,000.
When an interest-bearing note matures, the balance in the Notes Payable account is
less than the total amount...

...You would like to have $1,000,000 40 years from now, but the most you can afford to invest each year is $1,200. What annual rate of return will you have to earn to reach your goal?
FV 1000000
n 40
pmnt 1200
Rate 12.30%
6. (Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $1,995. If you could borrow that amount from Carl's Credit Union at 12% for 1 year, what would be your monthly loan payments?
Loan 1995 Annual Interest rate 12%
r 0.01
n 12
Payment: $177.25
7. (Solving for an annuity payment) You would like to have $1,000,000 accumulated by the time you turn 65, which will be 40 years from now. How much would you have to put away each year to reach your goal, assuming you're starting from zero now and you earn 10% annual interest on your investment?
FV 1000000
r 10%
n 40
Payment: $2,259.41
8. (PV of a perpetuity) If your required rate of return was 12% a year, how much would you pay today for $100 a month forever? (that is, the stream of $100 monthly payments goes on forever, continuing to be paid to your heirs after your death)...