CFA Institute Sustainable-Investing Dumps Questions Answers

If government policies support electric alternatives, this wouldreduce demand for oil, potentially lowering future cash flows. In aDCF model, this would be captured bylower revenue projections. The discount rate generally reflects overall risk (including ESG) but the direct impact of substitution is adownward adjustment to revenue forecastsrather than a change in discount rates.

CFA’s guidance emphasizes thatselling a legacy business operationcan often enhance a company’sstrategic focusandvalue creationfor shareholders, especially if the legacy asset is not core to future growth. Forming conglomerates often dilutes focus, and a zero-debt balance sheet can be seen as inefficient if growth opportunities exist.

Pre-emptive rightsprovideminority shareholders with the ability to maintain their proportional ownershipduring new equity issuances, thus protecting them fromdilution. In contrast,dual-class sharescreatedifferent voting rightsand canweaken the influence of minority shareholders, not protect them. Therefore, only pre-emptive rights (option B) offer genuine protection for minority investors against controlling shareholders or dilution events.