CFA level 1 question for 4-Mar-13Following are excerpts from Dupont Ltd's financial statement. Calculate the company's FCFFOperating Cash flow – 350Interest paid – 40Tax rate – 40%Capital Expenditure – 200Net increase in working capital -120a.54b.174c.150
Ans B. FCFF = OCF + Interest * (1-t)-Capex (Assuming interest is treated as OCF under IFRS) FCFF = 350+40*(1-40%)-200= 174
Well i would not be able to do that.the files are confidential and also i do not hold a facebook account.but still let me see if i can arrange for some dummies..thanks a lot for the cooperation.if i am able to find it i would post it in the form.would that be ok with you?
@Nirmal_AnalystWell i would not be able to do that.the files are confidential and also i do not hold a facebook account.but still let me see if i can arrange for some dummies..thanks a lot for the cooperation.if i am able to find it i would post it in the form.would that be ok with you?
@Vaishnovi that is fine you can post a dummy file here also
CFA level question for 8-Mar-13 Basha bought 10 shares of Coal India ltd at a price of Rs.320/share. He borrowed margin money of Rs.2000 at rate of 1% per month for this purpose. 1 month later he sold the shares at Rs.250. The excess loss (over normal buying i.e without margins) that he witnessed because of margin buying is
puys, i need ur invaluable advise... is it possible to pass CFA level 1 in 2 months!!! I mean i will pay the fees before deadline 13th march 13 and start off almost by that time. I have cleared FRM years back. what do you guys say ? should i go for it! Also, I can give in full time ( 6-7 hours daily) to level 1 preps
CFA level 1 question for 6-Mar-13Following are selected details of ABC Ltd. What is the justified P/E ratio of ABCLast year's EPS - Rs.120Last Year's dividend – Rs.100Book value per share – Rs.500WACC – 10%Cost of Equity – 12% a)10.42Xb)10.83Xc)2.17X
Ans B Justified P/E ratio will be given by [(1-Retention ratio) * (1+Growth)] / (Cost of Equity – Growth) Retention ratio = 1- Dividend Payout Ratio Dividend Payout Ratio = Dividend/ EPS = 100/120 = 83.3% Retention ratio = 1-83.3%=16.7% Growth = Return of Equity * Retention Ratio Return on Equity = Net Profit/ Book value or EPS/ Book value per share RoE = 120/500= 24% Growth = 24%*16.7% = 4.0% Justified P/E = [(1-16.7%)*(1+4.0%)]/ (12%-4.0%) = 10.83X
Krish understood from his analysis that at least one of the European nation is likely to witness a sovereign default in the next 3 years. Based on this information he bought at the money put options of Euro Stoxx 50 which will expire after 3 years, though currently he does not have any exposure to European markets. Krish's action is most consistent with which of the below stated 'purpose of financial markets'
a.Investing b.Managing Risk c.Trade to benefit from information
puys, i need urgent advice.. can you guys tell me will i be able to get mumbai as a test center (as i am from mumbai) or will they allot me some other test center given the fact that the deadline is within next 3-4 days ??? i am yet to book for level 1. and what value cfa level 1 alone adds to a resume? is it worth it alone in the job markets ?
Exactly 85 days remaining for CFA exams. Even assuming somebody starts only today we have enough time To study 67 study sessions in 67 days 10 days for revising 7 days for doing practice exams and 1 day for relaxing and getting our acts together on the day before exams. And if you have already started you are doing great. Cheer up and pull up your socks folks
Sensitivity Analysis in Excel Sensitivity Analysis is a very important part of any financial model - which showcases the change in model results with a change in the model inputs. This video shows how we can do Sensitivity Analysis on data in a financial model, using Excel
Effective Reporting in Financial Services uses a lot of Conditional Formatting. This Video explains how to use Conditional formatting for making more visually appealing reports in Excel.
Ans BJustified P/E ratio will be given by[(1-Retention ratio) * (1+Growth)] / (Cost of Equity €“ Growth)Retention ratio = 1- Dividend Payout RatioDividend Payout Ratio = Dividend/ EPS = 100/120 = 83.3%Retention ratio = 1-83.3%=16.7%Growth = Return of Equity * Retention RatioReturn on Equity = Net Profit/ Book value or EPS/ Book value per shareRoE = 120/500= 24%Growth = 24%*16.7% = 4.0%Justified P/E = [(1-16.7%)*(1+4.0%)]/ (12%-4.0%) = 10.83X
Where is this formula for P/E ratio? i am not able to figure it out!!!
CFA level question for 8-Mar-13Basha bought 10 shares of Coal India ltd at a price of Rs.320/share. He borrowed margin money of Rs.2000 at rate of 1% per month for this purpose. 1 month later he sold the shares at Rs.250. The excess loss (over normal buying i.e without margins) that he witnessed because of margin buying isa.21.8%b.38.1%c.60%
Ans B. remember the question asks for incremental loss because of margin buying Purchase price 320 No. Of shares 10 Purchase value 3200 Without margin Buying Sales Price 250 Sale Value 2500 Net loss (without margin buying) -21.88%
With margin Buying Borrowed Money 2000 Own Money 1200 Sale value 2500 Interest on borrowed money 20 Borrowed money returned 2020 Own money remaining 480 Loss (with Margin Buying) -60.0%
CFA level 1 question for 12-Mar-13 Monk Ltd reported a sales of Rs.1,300 crs and a gross profit of Rs.500 crs. The company €™s average inventory during the year is Rs. Rs.225 crs. What is the company €™s Days inventory in hand is closest to a.164 b.103 c.63
I mean i will pay the fees before deadline 13th march 13 and start off almost by that time. I have cleared FRM years back. what do you guys say ? should i go for it! Also, I can give in full time ( 6-7 hours daily) to level 1 preps 
