Question 1

It is possible to examine the uncertainty of income to the various suppliers of capital by investigating the uncertainty of income to the company. The greater the uncertainty of income to the company:

Options :

A : The greater the uncertainty of the income to the investor in the company

B : The lesser the uncertainty of the equity to the investor in the company

C : The greater the uncertainty of the equity to the investor in the company

D : The lesser the uncertainty of the income to the investor in the company

Answer: A

Question 2

The sales comparison approach is based on the economic principles of:

Options :

A : Efficient markets

B : Special financing and other terms regarding each sales transactions

C : Age of each property

D : Supply and demand

Answer: A,D

Question 3

The discount rate is a market-driven rate. It represents the expected yield rate-or rate of return-necessary to induce:

Options :

A : Investors to commit available funds to the subject investment, given its level of risk

B : Yield rate

C : Dividends

D : Investment yield

Answer: A

Question 4

There is a general consensus among appraisers that there is little or no difference in controlling interest market values between S corporations and C corporations under most circumstances, and that any difference depends on:

Options :

A : Finding a seller that there may be differences in value at the shareholder level for noncontrolling interests.

B : Finding a buyer that there may be differences in value at the shareholder level for noncontrolling interests.

C : Finding a dealer that there may be differences in value at the shareholder level for non- controlling interests.

D : Finding a broker that there may be differences in value at the shareholder level for non- controlling interests.

Answer: B

Question 5

Market evidence indicated that adjustable-rate preferred stocks generally required yields in the range of ______________ basic points.

Options :

A : 42 to 445

B : 48-498

C : 32-500

D : 50-500

Answer: A