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Exam CVA topic 1 question 225 discussion

Actual exam question from NACVA's CVA
Question #: 225
Topic #: 1
[All CVA Questions]

When using the elements of both the asset accumulation method and the capitalized earnings method in the same valuation, the analyst should pay particular attention to the selection of:

  • A. The required rates of return
  • B. The capitalization rates used in the excess earning component of the valuation
  • C. Identification of assets and liabilities on cost basis
  • D. Both A and B
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Suggested Answer: D 🗳️

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