CFA-Level-I Exam Question 426

The main reason for dollarization is:
  • CFA-Level-I Exam Question 427

    Which of the following statements is (are) true with respect to the impact the choice between expensing and capitalizing will have on certain financial ratios?
    I). Profit margins will be higher throughout the period for firms that capitalize certain expenditures as opposed to expensing them.
    II). Reported income tends to be more stabilized throughout the period if the capitalization method is used.
    III). Asset turnover ratios will be lower for firms that capitalize certain expenditures as opposed to expensing them.
    IV). Debt-to-equity ratios will be lower for companies that expense costs as opposed to capitalizing them.
  • CFA-Level-I Exam Question 428

    Given equal circumstances, which inventory method is the best to use for tax purposes (assume prices are rising)?
  • CFA-Level-I Exam Question 429

    The major differences between a warrant and a call option are:
    I). Warrants are contracts outside of the firm while options are within the firm
    II). Warrants have long maturities while options are usually short maturities
    III). Warrant exercise dilutes the value of equity while option exercise does not
  • CFA-Level-I Exam Question 430

    A profit-maximizing monopoly will produce an output where