CFA Practice Question

There are 96 practice questions for this study session.

CFA Practice Question

Which assumption will cause a company's shares to trade at a discount to their historical average multiple?

A. The intensity of competition is likely to increase in the future.
B. The company makes a major divestiture.
C. The company is likely to earn higher returns on invested capital in the future.
Explanation: Its profitability will likely be lower due to more intensive competition.

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