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CIMAPRA19-F02-1 Exam - Topic 1 Question 82 Discussion

Which of the following best describes the goal of WACC as a measure?
A) To work out the average return that is required by the company on its investments in order to satisfy all shareholders and debt holders.
B) To work out the average return that is required by the company on its investments in order to satisfy all shareholders.
C) To work out the average return that is required by the company on its investments in order to satisfy all debt holders.
D) To work out the minimum return that is required by the company on its investments in order to satisfy all shareholders and debt holders.

CIMAPRA19-F02-1 Exam - Topic 1 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 82
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

Which of the following best describes the goal of WACC as a measure?

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Suggested Answer: A

by Truman at Mar 06, 2024, 07:51 PM

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Gwenn
9 months ago
I disagree, it's more about the minimum return, so D feels right.
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Josphine
10 months ago
Wait, is it really that straightforward?
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Trina
10 months ago
I thought it was just for shareholders, but A makes more sense.
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Kendra
10 months ago
Definitely A! It covers all bases.
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Glory
10 months ago
WACC is all about balancing returns for both shareholders and debt holders.
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Lonny
10 months ago
I’m pretty sure WACC considers both shareholders and debt holders, so I think option D might be the right choice.
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Cammy
11 months ago
I feel like the goal of WACC is to determine the minimum return required, but I can’t remember if that means just for shareholders or both groups.
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Tamar
11 months ago
I remember practicing a similar question, and I’m not entirely sure if it’s just about shareholders or if it includes debt holders too.
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Yen
11 months ago
I think WACC is about the average return needed to satisfy both shareholders and debt holders, so I’m leaning towards option A.
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Antonette
11 months ago
The key here is that WACC looks at the overall cost of capital, not just the cost for shareholders or debt holders individually. I'll make sure to remember that for the exam.
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Lemuel
11 months ago
Okay, I think I've got it. The goal of WACC is to work out the average return required to satisfy all shareholders and debt holders, not just one or the other. That makes sense.
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Ramonita
11 months ago
Hmm, I'm a bit unsure about this. Is the goal to satisfy just the shareholders or just the debt holders? I'll have to think this through carefully.
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Deeann
11 months ago
I'm pretty confident about this one. WACC is the weighted average cost of capital, so the goal is to determine the average return required to satisfy both shareholders and debt holders.
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Gabriele
11 months ago
The wording of the question is a bit tricky, but I think Option D is the best choice. It specifically targets the iexplore.exe executable and allows it to run only from the specified directory.
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Lajuana
11 months ago
Easy peasy! The answer is clearly D - because there's never enough time to test everything, risk-based testing is the way to go. Mobile apps have to work across tons of devices and OS versions, so you have to be strategic about where you focus your efforts.
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Micaela
11 months ago
I remember studying that the delta of puts usually decreases as the stock price goes up. So, it could be moving closer to 0 now that BIC is at $40.
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Brock
11 months ago
Hmm, I'm a bit unsure about this one. I know Cpk has something to do with process capability, but I'm not sure how to calculate it from the given information.
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Lorrie
2 years ago
I believe WACC aims to satisfy both shareholders and debt holders. Option D doesn't make sense because we want to meet the required return, not just the minimum.
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Mira
2 years ago
I'm not sure. I think it might be only about satisfying the shareholders. Maybe option B is correct?
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Maryann
2 years ago
I agree with Pamella. Option A seems to be the best description as it considers both shareholders and debt holders.
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Pamella
2 years ago
I think the goal of WACC is to calculate the average return required by the company for all shareholders and debt holders.
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Veronika
2 years ago
I still think option A is more accurate because it mentions the average return specifically.
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Becky
2 years ago
But what about option D? It mentions satisfying both shareholders and debt holders.
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Arthur
2 years ago
I agree with Veronika, option A makes sense.
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Veronika
2 years ago
I think the goal of WACC is to satisfy both shareholders and debt holders.
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