CIMA Exam CIMAPRO19-P02-1 Topic 4 Question 55 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 55
Topic #: 4

Juan is looking to invest in the mining industry. He has narrowed his options down to two rival companies, both with sales of 200m. Company A has an EBIT of 10m whereas Company B has an EBIT of 14m.

This would suggest that Company B is the better investment but Juan is suspicious that Company B has more financial backing than Company A.

Which ratios will tell him which company will use his investment the best?

AProfit margin

BR.O.C.E

CCurrent ratio

DQuick ratio

Show Suggested Answer

Suggested Answer: A, B

by Dorothy at Jul 26, 2022, 03:34 AM

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