True or False

1. Going Concem firm value is determined under the going concem assumption The going concem assumption believes that the entity will continue to do its business activities into the foreseeable future

2. Liquidation Value is the net amount that would be realized if the business is terminated and the assets are sold piecemeal

3. Fair Market Value is the price, expressed in terms of cash equivalents at which property would change hands between a hypothetical willing and able buyer and a hypothetical willing and able seller acting at arm's length in an open and unrestricted market when neither is under compulsion to buy or sell and when both have reasonable knowledge of the relevant facts

4. Fundamental analysts are persons who are interested in understanding and measuring the intrinsic value of a firm

5. Fundamentals refer to the characteristics of an entity related to its financial strength, profitability or risk appetite

6. Activities investors usually do takeovers - they use their equity holdings to push old management out of the company and change the way the company is being run

7. Chartists relies on the concept that stock prices are significantly influenced by how investors think and act Chartists rely on available trading KPIs such as price movements trading volume, short sales - when making their investment decisions

8. Information Traders are Traders that react based on new information about firms that are revealed to the stock market. The underlying belief is that information traders are more adept in guessing or getting new information about firms and they can make predict how the market will react based on this

9. An acquisition usually has two parties the buying firm and the selling firm. The buying firm needs to determine the fair value of the target company prior to offering a bid price

10. Merger is the general term which describes the transaction two companies combined to form a wholly new entity

11. Value pertains to how much a particular object is worth to a particular set of eyes

12. Methods to value for real estate can may be different on how to value an entire business

13. Businesses treat capital as a scarce resource that they should compete to obtain and efficiently manage

14. According to the CFA Institute, valuation is the estimation of an asset's value based on variables perceived to be related to future investment returns on comparisons with similar assets, or when relevant, on estimates of immediate liquidation proceeds

15. Valuation includes the use of forecasts to come up with reasonable estimate of value of an entity's assets or its equity

16. Valuation techniques may differ across different assets but all follows similar fundamental principles that drives the core of these approaches

17. As valuation mostly deals with projections about future events analysis should hone their ability to balance and evaluation different assumptions used in each phase of the valuation exercise, assess validity of available empirical evidence and come up with rational choices that aligns with the ultimate objective of the valuation activity

18.In the corporate setting the fundamental equation of value is grounded on the principle that Alfred Marshall popularized - a company creates value if and only if the return on capital invested exceed the cost of acquiring capital

19. Value in the point of view of corporate shareholders, relates to the difference between cash inflows generated by an investment and the cost associated with the capital invested which captures both time value of money and risk premium

20. Intrinsic value refers to the value of any asset based on the assumption assuming there is a hypothetically complete understanding of its investment characteristics