BlackFriday 2024! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CIMA Exam CIMAPRA19-F03-1 Topic 6 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam
Question #: 100
Topic #: 6
[All CIMAPRA19-F03-1 Questions]

Three companies are quoted on the New York Stock Exchange. The following data applies:

Which of the following statements is TRUE?

Show Suggested Answer Hide Answer
Suggested Answer: D

Contribute your Thoughts:

Freida
1 months ago
D, the middle ground. Gotta love that Goldilocks approach to risk. Not too hot, not too cold.
upvoted 0 times
...
Selma
1 months ago
Hmm, C seems tempting. Business risk is where it's at. Volatility, the spice of life!
upvoted 0 times
Alyce
12 days ago
C) Companies A and C have the same business risk
upvoted 0 times
...
Denise
16 days ago
B) Companies A and B have the same capital structure
upvoted 0 times
...
Tiera
25 days ago
A) Company A has the greatest business risk
upvoted 0 times
...
...
Kenny
1 months ago
But look at the data, Company A has the highest beta which indicates higher business risk.
upvoted 0 times
...
Annamaria
1 months ago
I disagree, I believe the answer is A) Company A has the greatest business risk.
upvoted 0 times
...
Kenny
1 months ago
I think the answer is D) Companies A and B have the same business risk.
upvoted 0 times
...
Merlyn
1 months ago
B is the way to go, can't go wrong with equal capital structures. Balanced books, baby!
upvoted 0 times
Sylvia
15 days ago
D) Companies A and B have the same business risk
upvoted 0 times
...
Samuel
16 days ago
C) Companies A and C have the same business risk
upvoted 0 times
...
Gilbert
25 days ago
B) Companies A and B have the same capital structure
upvoted 0 times
...
Kristine
26 days ago
A) Company A has the greatest business risk
upvoted 0 times
...
...
Timothy
2 months ago
A for sure, look at that debt-to-equity ratio! Company A is playing with fire.
upvoted 0 times
Delisa
14 days ago
But Company C also has a high debt-to-equity ratio, so they might have similar business risk.
upvoted 0 times
...
Loreen
16 days ago
C) Companies A and C have the same business risk
upvoted 0 times
...
Suzan
18 days ago
I think you're right, that debt-to-equity ratio is pretty high for Company A.
upvoted 0 times
...
Lera
26 days ago
A) Company A has the greatest business risk
upvoted 0 times
...
...

Save Cancel