D076 OA Exam practice Questions and
Answers
What does the term legal describe?
Encourage manipulation of accounting procedures to optimize the company's profit
Release managers who do not attempt to maximize immediate shareholder value
Set strict covenants that the company cannot uphold if it ...
Required rate of return - Answer✔✔-Required rate of return
BLANK Is the possibility that the realized or actual return will differ from the expected return?
Hurdle rate.
Inflation
Opportunity cost
Risk - Answer✔✔-Risk
Which components of an interest rate is an indicator of inflation and opportunity cost?
Capital growth rate
Risk-free rate
Sustainable growth rate
Sales growth rate - Answer✔✔-Risk-free rate
What is the name for the interest rate expressed on an annual basis?
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