WorksheetsChapter 1: Valuation
Total questions: 20
Worksheet time: 13mins
1. _______________ pertains to how much a particular object is worth to a particular set of eyes.
Price
Value
Cost
Fundamentals
2. _________________ refers to the value of any asset based on the assumption assuming there is a hypothetically complete understanding of its investment characteristics.
Going Concern Value
Liquidation Value
Intrinsic Value
Fair Market Value
3. General term which describes the transaction two companies combined to form a wholly new entity.
Mergers
Acquisitions
Divestiture
Spin-off
4. The relevance of valuation in ______________ largely depends on the investment objectives of the investors or financial managers managing the investment portfolio.
Portfolio Management
Fundamental Management
Financial Management
Investment Management
5. They believe that these metrics imply investor psychology and will predict future movements in stock prices.
Fundamental Analysts
Activist Investors
Chartists
Information Traders
6. Draw what you want for Christmas :P
7. These are persons who are interested in understanding and measuring the intrinsic
value of a firm.
Chartists
Fundamental Analysts
Information Traders
Activist Investors
8. Which of the following is not included in Michael Porter's Five Forces?
Substitutes and Complements
Industry Rivalry
9. The process of determining the current worth of an asset or a company is known as ______________.
Valuation
Evaluation
Assessment
Estimation
10. In the context of investment analysis, _______________ focuses on the financial health and performance of a company.
Sentiment Analysis
Technical Analysis
Fundamental Analysis
Quantitative Analysis
11. How do you feel now that there's only one month left before 2024 ends?
12. Which of the following best describes a hostile takeover?
A merger of equals
A friendly acquisition
A government-mandated acquisition
An acquisition without the consent of the target company's management
13. According to the CFA Institute, ____________ is the estimation of an asset's value based on variables perceived to be related to future investment returns, on comparisons with similar assets, or, when relevant, on estimates of immediate liquidation proceeds
Appraisal
Price Estimation
Valuation
Fundamental
14. Which of the following best describes a leveraged buyout?
A government acquisition of a private company
An acquisition funded by the target company's assets
A merger between two equal companies
A purchase of a company using borrowed funds
15. Separating a segment or component business and transforming it into a separate legal entity whose ownership will be transferred to shareholders.
Mergers
Acquisitions
Spin-off
Divestiture
16. Which of the following is not a Corporate Strategy to gain corporate advantage according to Michael Porter?
Focus
Cost Leadership
Differentiation
Valuation
17. It is a Forecast Approach that starts from the lower levels of the firm and is completed as it captures what will happen to the company based on the inputs of its segments/units.
Bottom-Down
Top-Up
Bottom-Up
Top-Down
18. ____________ tend to look for companies with good growth prospects that have poor
management.
Activist Investors
Fundamental Analysts
Chartists
Information Traders
19. Sale of a major component or segment of a business (e.g. brand or product line) to
another company is called:
Spin-off
Divestiture
Merger
Acquisition
20. Birthday message for Kelly. Dapat heartfelt ha, para naay one point!
