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Question of the Week: Level 2 - Equity Valuation
An analyst evaluates SD Cement Inc., a company operating in an emerging economy. The analyst observes the following characteristics:
- Low substitution costs
- A fragmented industry
- Large number of suppliers
- Large customer base
- Significant barriers to entry
Which of the above characteristics is least likely to negatively affect the pricing power for SD Cement Inc.?
Question of the Week: Level 2 - Equity Valuation 5 votes
A. Low substitution costs.
B. A fragmented industry.
C. Significant barriers to entry.