The Membership of the Association for Information Technology Professionals (AITP)

question 54

True/False

The membership of the Association for Information Technology Professionals (AITP) represents a broad cross-section of the computer community including IS managers and application developers.

Understand the fundamental concepts of business and stock valuation.

Grasp the principles and applications of the capital asset pricing model (CAPM) in estimating equity cost of capital.

Recognize the significance of free cash flow in valuation and investment decision-making.

Comprehend the role of accrual accounting earnings in predicting future cash flows.

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Definitions:

Forward Contract

A customized contract between two parties to buy or sell an asset at a specified price on a future date.

Exchange Gain

The profit resulting from foreign exchange transactions and the fluctuation in exchange rates, realizing a higher value in the home currency.

Net Loss

The amount by which total expenses exceed total revenues for a business during a specific period, indicating a financial loss.

Spot Rate

The current exchange rate at which a currency can be bought or sold for immediate delivery.