Free CTFA Exam Braindumps (page: 24)

Page 23 of 113

The presence of managerial, or real, options the worth of an investment project.

  1. Increases
  2. Decreases
  3. Does not affect
  4. Increases or decrease

Answer(s): A



A firm's degree of operating leverage (DOL) depends primarily upon its:

  1. Sales variability
  2. Level of fixed operating costs
  3. Closeness to its operating break-even point
  4. Debt-to-equity ratio

Answer(s): C



EBIT is usually the same thing as:

  1. Funds provided by operations
  2. Earnings before taxes
  3. Net income
  4. Operating income

Answer(s): D



In the context of operating leverage break-even analysis, if selling price per unit rises and all other variables remain constant, the operating break-even point in units will:

  1. Fall
  2. Rise
  3. Stay the same
  4. Still be indeterminate until interest and preferred dividends paid are known

Answer(s): A






Post your Comments and Discuss ABA CTFA exam with other Community members:

Exam Discussions & Posts