Identify whether the statement are True or False. 1. Insurance companies use replacement value as a basis to determine the appropriate insurance premium to be charged to their clients. * 2. To get book value per share, total liabilities are deducted from total assets, and the resulting figure is divided by total authorized shares * 3. For real properties, it is more important to look at the age of the asset than its size. * 4. Fair Market value is the term used to describe the value derived from the amounts reflected in the financial statements. * 5. Risk identification is important to allow investors to assess the impact of the risk on their investment. * 6. Brownfield investments are easier to evaluate as information is already available from prior years * 7. The book value method is a transparent approach since value can be easily verified by looking at the financial statements * 8. If there are no comparable assets found in the market, it is more appropriate to use the replacement value method. *
Identify whether the statement are True or False.
1. Insurance companies use replacement value as a basis to determine the appropriate insurance premium to be charged to their clients. *
2. To get book value per share, total liabilities are deducted from total assets, and the resulting figure is divided by total authorized shares *
3. For real properties, it is more important to look at the age of the asset than its size. *
4. Fair Market value is the term used to describe the value derived from the amounts reflected in the financial statements. *
5. Risk identification is important to allow investors to assess the impact of the risk on their investment. *
6. Brownfield investments are easier to evaluate as information is already available from prior years *
7. The book value method is a transparent approach since value can be easily verified by looking at the financial statements *
8. If there are no comparable assets found in the market, it is more appropriate to use the replacement value method. *
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