- 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
To project a company's future capital structure, _____ ratios are often used as the forecast object.
B. leverage
C. solvency
D. efficiency
A. profitability
B. leverage
C. solvency
D. efficiency
Correct Answer: B
Leverage ratios such as debt to capital ratio are often used as the forecast object to project a company's future debt and equity levels.
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