Hi.. PLEASE HELP - URGENT!!!!!!!!!I have to travel to US for 3 months so i'm thinkng to change my test centre to US only.
The prob is I will only get to know about it around 20th april but the last date to change the date for centre is 12th April.
Can you please tell me if there is any other way for changing the centre after the deadline date???
Can anyone please tell me what does the CDs of OM/Laxmi xerox center consists of..? One CD has a question bank software,but what is it in the 2nd cd/dvd?
@Nirmal_Analyst said:CFA level 1 question for 13-Mar-2013Tamo Ltd and MM Ltd are similar is all aspects including their financials and credit ratings. Both Tamo and MM issued 10,000 bonds of Rs.100 FV and a coupon of 9%. The bonds will mature after 5 years. However Tamo's issue price was Rs.98/bond while MM's issue price was Rs.102/bond. All else remaining equal Tamo's Interest coverage ratio compared to MM's interest coverage ratio will bea)Tamo's ICR > MM's ICRb)Tamo's ICR c)Data Insufficient
Ans B: At a conceptual level, Yield on Premium Bond Interest expense reported in Income statement Carrying Value * Yield.
So the interest expense on a discount bond will be higher than interest expense on a premium bond. We know
Interest coverage ratio = EBIT/ Interest.
Given the financials are same only denominators will differ.
So discount bond of Tamo which has higher interest expense will have lesser interest coverage ratio!.
Specific to our example TAMO's bond will attract an YTM at issue of 10.5% and MM's bond an YTM at issue of 9.5%. For first year Tamo's bonds will have an interest expense of 98*10.5%=10.32. MM's bond will have interest expense of 98*9.5% = 9.7. So ICR of Tamo MM's ICR for the entire life (all else remaining equal) .
This explanation holds for straight line amortization of bond/premium also
So the interest expense on a discount bond will be higher than interest expense on a premium bond. We know
Interest coverage ratio = EBIT/ Interest.
Given the financials are same only denominators will differ.
So discount bond of Tamo which has higher interest expense will have lesser interest coverage ratio!.
Specific to our example TAMO's bond will attract an YTM at issue of 10.5% and MM's bond an YTM at issue of 9.5%. For first year Tamo's bonds will have an interest expense of 98*10.5%=10.32. MM's bond will have interest expense of 98*9.5% = 9.7. So ICR of Tamo MM's ICR for the entire life (all else remaining equal) .
This explanation holds for straight line amortization of bond/premium also
Hi.. PLEASE HELP - URGENT!!!!!!!!!I have to travel to US for 3 months so i'm thinkng to change my test centre to US only.
The prob is I will only get to know about it around 20th april but the last date to change the date for centre is 12th April.
Can you please tell me if there is any other way for changing the centre after the deadline date???
The prob is I will only get to know about it around 20th april but the last date to change the date for centre is 12th April.
Can you please tell me if there is any other way for changing the centre after the deadline date???
@Nirmal_Analyst Do you have an alternate idea?
@LeoV I am afraid CFA institute will be flexible after the deadline. You may have to decide before April 12th
General Weekend Discussion.
We all know in business combinations such as M&A; when
Acquisition price > fair value of assets, then for accounting purpose companies will create Goodwill, wherein
Good will = Acquisition Price €“ Fair value.
On the other hand, If Acquisition price
We all know in business combinations such as M&A; when
Acquisition price > fair value of assets, then for accounting purpose companies will create Goodwill, wherein
Good will = Acquisition Price €“ Fair value.
On the other hand, If Acquisition price
@Nirmal_Analyst said:General Weekend Discussion.We all know in business combinations such as M&A; when Acquisition price > fair value of assets, then for accounting purpose companies will create Goodwill, whereinGood will = Acquisition Price 창€“ Fair value.On the other hand, If Acquisition price
@Nirmal_Analyst
If Goodwill is in negative then it will be shown as a profit in income statements, thereby increasing the Net Profit. The Effect on balance sheet will be that there will be an increase in Retained Earnings by NET PROFIT(Excluding negative goodwill) + Negative Goodwill.
If Goodwill is in negative then it will be shown as a profit in income statements, thereby increasing the Net Profit. The Effect on balance sheet will be that there will be an increase in Retained Earnings by NET PROFIT(Excluding negative goodwill) + Negative Goodwill.
Count occurrences given a certain condition. One possible application where we can use this is when we try to find how many days a stock or a fund has given positive returns or outperformed the index.
Hey all,
I am really interested in CFA, and am a BBA grad with 20 months of exp in banking operations. I got selected at NMIMS-Capital Markets MBA right now, but I decide not to pursue it, since it would comewhere around 18 lacs in all, and the placement scenario is not that bright for this course. Hence, I wanna appear for MBA exams this year again. Meanwhile, wanna start CFA.
Can any one answer a few questions?
What salary can be expected after you complete each CFA module, 1 - 2 - 3?
Can CFA level be done simultaneously with job and MBA entrance prep? Although for MBA entrance I would just give online tests, since I've already seriously prepared for it once.
How hard is CFA for someone new to it? The number of hours you need to put in every day?
@anotherguy well, a personal advice from my end!!! since CFA can be done at the time u pursue your MBA , i think u shud give much more efforts towards entrance as if you cant secure a gud score , then CFA cant get you a covet seat in the best B school
P.S. a personal advice, no offense!!!
@Nirmal_Analyst said:CFA level 1 question for 15-Mar-13Which of the below comment about Justified Price to Earnings Ratio is NOT correct. All else remaining equala)Higher the RoE, higher will be the P/Eb)Lower the Cost of equity, higher will be the P/Ec)Higher the growth, lower will be the P/E
Ans C:
Leaving the math, logically we would pay higher price for company that has higher return (i.e RoE), pay higher price for company that grows fast , if cost of equity is lower than you discount the cash flows at a lower rate, so valuation and hence P/E will be higher.
Coming to Math,
Remember P/E1 = (1-Retention ratio)/ (cost of equity €“ growth) and
growth = RoE * Retention Ratio.
Based on this Lower the Cost of equity, higher the P/E as denominator will be smaller.
Higher the RoE higher will be the PE, as denominator will be lesser. (RoE is a negative item in denominator)
Higher the growth higher will be the PE, as denominator will be lesser . (Growth is a negative item in denominator)
Leaving the math, logically we would pay higher price for company that has higher return (i.e RoE), pay higher price for company that grows fast , if cost of equity is lower than you discount the cash flows at a lower rate, so valuation and hence P/E will be higher.
Coming to Math,
Remember P/E1 = (1-Retention ratio)/ (cost of equity €“ growth) and
growth = RoE * Retention Ratio.
Based on this Lower the Cost of equity, higher the P/E as denominator will be smaller.
Higher the RoE higher will be the PE, as denominator will be lesser. (RoE is a negative item in denominator)
Higher the growth higher will be the PE, as denominator will be lesser . (Growth is a negative item in denominator)
CFA level question for 18-Mar-13
In the below table Bajaj witnessed a 1:3 split and closed at Rs.685/share. what is price weighed return for the period
Name; Beginning Price; Ending Price; Shares OS; Dividend/Share
Reliance Ind; 875; 860; 6000; 45
Bajaj Auto; 1950; 685*; 1700; 70
ONGC; 310; 325; 12000; 9
* Post 1:3 split
a. 2.9%
b. 1.9%
c. 2.2%
In the below table Bajaj witnessed a 1:3 split and closed at Rs.685/share. what is price weighed return for the period
Name; Beginning Price; Ending Price; Shares OS; Dividend/Share
Reliance Ind; 875; 860; 6000; 45
Bajaj Auto; 1950; 685*; 1700; 70
ONGC; 310; 325; 12000; 9
* Post 1:3 split
a. 2.9%
b. 1.9%
c. 2.2%
The usage of Goal Seek in Excel - Goal Seek is a feature that allows you to arrive at an input value, if you know the output value, or in other words, the Goal that needs to be achieved. A very useful tool for back calculating a lot of data points.
CFA level 1 question for 19-Mar-13
Zeal Ltd bought a machinery for Rs.200 crs. The tax base of the machine at the end of Year 3 is Rs.50 crs and carrying value at the end of year 3 is Rs.80 crs. The tax rate is 35% till the end of year 3.At this point if the tax rate decreases to 25% what would be the change in deferred tax
a)Deferred tax liability will increase by Rs. 3 crs
b)Deferred tax liability will decrease by Rs.3 crs
c)Deferred tax asset will increase by rs.3 crs
Zeal Ltd bought a machinery for Rs.200 crs. The tax base of the machine at the end of Year 3 is Rs.50 crs and carrying value at the end of year 3 is Rs.80 crs. The tax rate is 35% till the end of year 3.At this point if the tax rate decreases to 25% what would be the change in deferred tax
a)Deferred tax liability will increase by Rs. 3 crs
b)Deferred tax liability will decrease by Rs.3 crs
c)Deferred tax asset will increase by rs.3 crs
hi.. Can anyone tell me where can i find good CFA level I mock exams for free....
@Nirmal_Analyst said:CFA level question for 18-Mar-13In the below table Bajaj witnessed a 1:3 split and closed at Rs.685/share. what is price weighed return for the periodName; Beginning Price; Ending Price; Shares OS; Dividend/ShareReliance Ind; 875; 860; 6000; 45Bajaj Auto; 1950; 685*; 1700; 70ONGC; 310; 325; 12000; 9* Post 1:3 splita. 2.9%b. 1.9%c. 2.2%
Ans B: Since it is a 1:3 split adjust Bajaj auto €™s starting price by dividing it by 3
i.e 1950/3 = 650
Starting sum of prices =875+650+310 =1835
Ending sum of prices = 860+685+325 = 1870
Return (1870/1835)-1 = 1.91%
i.e 1950/3 = 650
Starting sum of prices =875+650+310 =1835
Ending sum of prices = 860+685+325 = 1870
Return (1870/1835)-1 = 1.91%
CFA level 1 question for 20-Mar-13
Following are the selected ratios from ABC ltd €™s latest financial statement. What is the ABC €™s Return on Equity?
Sales (Rs mn): 125,000
Pre Tax Profit Margin: 12.2%
Tax rate: 30%
Asset Turnover ratio: 1.93X
Debt Equity ratio: 60%
a)9.9%
b)44.0%
c)26.4%
Following are the selected ratios from ABC ltd €™s latest financial statement. What is the ABC €™s Return on Equity?
Sales (Rs mn): 125,000
Pre Tax Profit Margin: 12.2%
Tax rate: 30%
Asset Turnover ratio: 1.93X
Debt Equity ratio: 60%
a)9.9%
b)44.0%
c)26.4%
FinShiksha - Equity Valuation - bangalore - Classroom training
Certification in Equity Valuation Program starts on March 31 in Bangalore. Spread over 8 weekends, this 60 hour program equips participants with in-depth knowledge on Valuation of stocks. At the end of the program the participant will be able to evaluate a company using various valuation methodologies, and also build a model for Valuation. The program covers 3 DCF Valuation exercises, Various Relative Valuation exercises and cases on other valuation techniques. Suited for someone who wants to build a career as an Equity Analyst. This is a classroom Program. Use the given link to register for the program.
@Nirmal_Analyst said:CFA level 1 question for 15-Mar-13Which of the below comment about Justified Price to Earnings Ratio is NOT correct. All else remaining equala)Higher the RoE, higher will be the P/Eb)Lower the Cost of equity, higher will be the P/Ec)Higher the growth, lower will be the P/E
b)