Chapter 1: Valuation

1. _______________ pertains to how much a particular object is worth to a particular set of eyes.

• Price

• Value

• Cost

• Fundamentals

2. 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. 3. General term which describes the transaction two companies combined to form a wholly new entity.

• Mergers

• Acquisitions

• Divestiture

• Spin-off

4. 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. 6. Draw what you want for Christmas :P

7. 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. 8. Which of the following is not included in Michael Porter's Five Forces?

• Substitutes and Complements

• Buyer power
• Industry Rivalry

• Government regulations

1. 9. The process of determining the current worth of an asset or a company is known as ______________.

• Valuation

• Evaluation

• Assessment

• Estimation

6. 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