CIMAPRO19-P02-1 Exam - Topic 1 Question 32 Discussion

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

Question #: 32
Topic #: 1

[All CIMAPRO19-P02-1 Questions]

The following summarised financial statements have been prepared by JNM's North subsidiary for the year just ended:

Calculate the North subsidiary's Residual Income, assuming that JNM's cost of capital is 10%.

Give your answer to the nearest $ million.

A$24 million, 24000000

Show Suggested Answer

Suggested Answer: A

by Ettie at May 05, 2022, 06:32 AM

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Stacey

10 months ago

Just double-checking the calculations, but I think it checks out.

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Lovetta

10 months ago

I got $24 million too, looks right!

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Alfreda

11 months ago

Wait, are we sure about those figures? Seems off to me.

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Thaddeus

11 months ago

Totally agree, it's all about that cost of capital!

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Cherelle

11 months ago

Residual Income is calculated by subtracting the cost of capital from net income.

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Rene

11 months ago

This question seems a bit tricky. I'll need to think carefully about the differences between distributive and integrative approaches to negotiation.

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Jamal

11 months ago

Okay, I think I know what's going on here. The "HA insufficient resources" error suggests we need to free up some capacity on the hosts.

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Patti

11 months ago

I'm pretty sure white-box testing means access to the code is necessary. So, probably not B or C, but D seems to fit too.

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Keshia

11 months ago

Okay, I've got this. An HR audit is designed to help management analyze HR policies and procedures to ensure legal compliance. That's got to be the right answer.

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