QUESTION: 89

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

Increases
Decreases
Does not affect
Increases or decrease

Answer(s): A

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QUESTION: 90

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

Sales variability
Level of fixed operating costs
Closeness to its operating break-even point
Debt-to-equity ratio

Answer(s): C

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QUESTION: 91

EBIT is usually the same thing as:

Funds provided by operations
Earnings before taxes
Net income
Operating income

Answer(s): D

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QUESTION: 92

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:

Fall
Rise
Stay the same
Still be indeterminate until interest and preferred dividends paid are known

Answer(s): A

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Free CTFA Exam Braindumps (page: 23)

QUESTION: 89

QUESTION: 90

QUESTION: 91

QUESTION: 92