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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?

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Suggested Answer: D

by Audrie at Sep 14, 2024, 08:29 AM

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