Income Based Valuation Approach
Quiz
•
Mathematics, Business
•
University
•
Medium
Standards-aligned
John Falceso
Used 18+ times
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9 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
A Co. projected earnings to be Php 120 Million per year. The board of directors decided to sell the company for Php 500 million with a cost of capital appropriate for this type of business at 12%. Given the foregoing, the EVA is computed as;
Php 50,000,000
Php 32,000,000
Php 60,000,000
Php 65,000,000
Tags
Economic Value Added
2.
FILL IN THE BLANK QUESTION
10 sec • 1 pt
It is the amount of money that the company or the assets will generate over the period of time.
3.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Statement 1: The general concept of Economic Value Added is that HIGHER excess earnings is BETTER for the firm.
Statement 2: Economic Value Added is the MOST conventional way to determine the value of the asset
Only Statement 1 is True
Only Statement 2 is True
Both Statements are False
Both Statements are True
4.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
The following are the elements considered in using Economic Value Added, except;
Reasonableness of earnings
Appropriate Cost of Capital
Professional Skepticism
None of the above
5.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
A valuation approach that is based on the concept that the actual value of a business lies in the ability to produce revenue, profit and eventually wealth in the future.
Income Based Valuation Approach
Market Based Valuation Approach
Asset Based Valuation Approach
Benefit Received Valuation Approach
6.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
Also known as dividend relevance theory. It believes that dividend or capital gains has an impact on the price of the stock
BIrd-in-the-Hand Theory
Capitalization Theory
Capital Gain Theory
Divident Matter Theory
7.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
The cost of financing the business operations through Equity
Cost of Equity
Cost of Debt
Cost of Capital
WACC
8.
MULTIPLE CHOICE QUESTION
10 sec • 1 pt
It refers to the cost incurred by the firm to raise capital through both Equity and Debt for the business.
Cost of Equity Financing
Cost of Debt Financing
Cost of Capital
None of these
9.
MULTIPLE CHOICE QUESTION
20 sec • 1 pt
Given the following;
Debt financing - 200,000
Equity Financing - 500,000
Compute for the weight percentage of equity financing
71%
72%
70%
73%
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