- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 7. Company Analysis: Forecasting
- Subject 4. Forecasting Capital Investments and Capital Structure
CFA Practice Question
Maintenance capital expenditures are high for businesses with ____ fixed asset turnover.
B. high
A. low
B. high
Correct Answer: A
Companies with low fixed asset turnover don't replace their PP&E quick enough, but maintenance costs should be high.
User Contributed Comments 0
You need to log in first to add your comment.