Certified Valuation Analyst (CVA) Exam 2025 – 400 Free Practice Questions to Pass the Exam

The determined value of Geri Co's business being $6,045,500 suggests that this amount likely reflects a thorough assessment of various financial metrics and valuation methodologies. In business valuation, the value is typically derived from analyzing cash flow projections, market conditions, comparable company analysis, and other economic factors that affect the enterprise's worth.

In determining a business's value, several factors such as revenue, profit margins, asset values, and liabilities are taken into account. Additionally, the chosen methodology—be it the income approach, market approach, or asset-based approach—would significantly influence the final valuation.

For this context, the value of $6,045,500 indicates a robust evaluation process that aligns with industry standards for valuations, accounting for not only tangible assets but also intangible elements like brand value, customer relationships, and potential for future earnings. The figure likely reflects realistic market conditions and future performance expectations of Geri Co, which are pivotal in establishing a credible and defendable business value.