Asa bv201 - Study guides, Class notes & Summaries

Business Appraisal Profession - correct answer 1) entire firms specializing in business appraisal 2) departments of firms primarily doing other things, such as CPA firms, banks, and multidisciplinary firms 3) part-time practitioners Business appraiser services - correct answer 1) An objective and independent valuation opinion of business interests 2) An advisory, or consulting (advocate), role in determining a value Market Approach - 3 Approaches to Value - correct answer 1) Principle of s...

what does equity consist of? Paid-in capital in the form of preferred or common stock Preferred stocks return on investment Retained earnings equity of the business the owners' interest in the property after deductions are made for all liabilities. Invested capital sum of the stockholder's equity or partner's capital and the interest-bearing debt why is invested capital important? allows us to compare one company to another, or have an abnormal capital structure ...