1. Enumerate at least five (5) reasons why IVSC is important.
2. Before the value of a business can be measured, the valuation assignment must specify the reason for and circumstances surrounding the business valuation. Why do you think is this necessary?
3. Define the following terms:

• Investment value
• Intrinsic value
• Internal Revenue Service (IRS)
• Options pricing
• Fair Value
• Fair Market Value

4.Cite at least three (3) uses of the following in business valuation:

• Investment value
• Intrinsic value
• Fair Market Value

1. Alfred Marshall, a well-known English economist, popularized "a company creates value if and only if the return on capital invested exceed the cost of acquiring capital" briefly explain such statement.
2. Business valuation basically plays an important role on the users below. Briefly explain who these "users" are and why valuation is important to them.

• Activist Investors
• Chartists
• Information Traders
• Portfolio Managers

3.Aside from what is indicated on the material, research on the definition of the following terms:

• Merger
• Divestiture
• Spin-off
• Leveraged buyout
• Top-down forecasting approach
• Bottom-up forecasting approach
• Supplier Power
• Buyer Power
• New Entrants
• Industry rivalry

1. Given below are the basic steps of valuation process. Illustrate them using charts, pictures or other creative ways.

• Understanding of the business
• Forecasting financial performance
• Selecting the right valuation model
• Preparing valuation model based on forecasts
• Applying valuation conclusions and providing recommendation

2.Using your own understanding, briefly explain each step in the valuation process (as enumerated above).

3.Cite at least (5) factors that influences or causes uncertainty in valuation.