- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 17. Financial Statement Modeling
- Subject 2. Income Statement Modeling: Costs
CFA Practice Question
Which of the following metric is an analyst least likely to consider when forecasting financing expenses?
A. The capital structure of the company.
B. The interest rate.
C. Benefit from special tax treatment.
Correct Answer: C
Benefits from special tax treatments are more likely to affect the forecasting of corporate income taxes. Debt and interest rates are the main drivers when forecasting financing expenses.
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