[Official] CFA Level 1 June 2014

Jobs & Careers
42

Finance Thought for the day 4:


Sam is calculating WACC for a project to estimate NPV of a project. Using market value of equity and debt he calculates weight of equity as 75% (remaining is debt) and using book value of equity he calculates weight of equity as 55%. To calculate WACC to be used in the above analysis he should use market weight or book weight? Why?

43

Hello Puys,

I am an MBA and working in a finance company. Please resolve following queries as per CFA L-3 candidate:

Q1: What are general profiles that the candidate can expect?

Q2: Which industries look forward for this qualification?

Q3: What is average salary paid with respect to various profiles?

Q4: Is there enough opportunity internationally?

Please dont give generic answers because it is all I found yet.😠

Thanks in advance...

44

Hi All, Hope you are doing well. I am new to this thread so thought of introducing myself. I am an EA and I prepare Tax returns for US hedge funds and Future funds. I am employed with one of the Big 4 (EY LLP) in India. I am from Bangalore.

I would like to hear back from all in this thread. Please introduce yourself here. Lets create a network with a more wider scope than CFA Level 1 June 2014.😁

45

any group in delhi for joint study??


46

any one in delhi for CFA L1 2014 plz mail me at yuvrajmaheshwari2010@gmail.com

47

any idea for the coaching for CFA L1 2014 in Delhi?

48

Friends, I'm new to this whole concept & need some help;now I'm gonna be joining a PSB in coming month & will extensively prepare for CAT ie IIM's for 2014..Now keeping in mind my AIM for Fianncial sector and to add an illusive certification to my resume & leniency of premier B SCHOOLS on financial certifications I'd like to go for CFA (LEVEL 1) at least..Now the queries:

1>Is it mandatory to go for classroom coaching & all for passing LEVEL 1 or at most Level 2??
Bcoz I've found Schwester study materials on Torrentz.com & they seem sufficient..
2>how many months does it take for a non-Commerce (esp Engineering) background student to crack CFA LEVEL 1?
3>The amount (approx 60 k INR) is pretty big & thus I guess can apply one time in a Do or Die attempt..So how to pay this amount?? As I donno abt Wired transfer..Is it difficult or easy??
4>What do u suggest me to do in Forth Coming months to prepare myself for d same??
PLEASSSSSSSSSSSSSSS HELP & SUGGEST....
49

I have completed masters in economics this year, am I eligible for CFA Level 1?

50

Hii
Anyone preparing for CFA in Raipur?

51

Anyone in Ahmedabad for CFA - L1 - 2014?

52

Hyderabad Level 1 CFA? anyone?

53

@Nirmal_Analyst

Finance Thought for the day 4:



Sam is calculating WACC for a project to estimate NPV of a project. Using market value of equity and debt he calculates weight of equity as 75% (remaining is debt) and using book value of equity he calculates weight of equity as 55%. To calculate WACC to be used in the above analysis he should use market weight or book weight? Why?



Book Weight

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All CFA Aspirants,

FinShiksha is organizing a CFA Level 1 warm up Test & Competition. This will help you to evaluate your preparation so far.


Also Prizes to be won!!!

Please click the below link to attempt the test



CFA Level 1- Warm Up Test Survey
Surveymonkey
Web survey powered by SurveyMonkey.com. Create your own online survey now with SurveyMonkey s expert certified FREE templates.





55

hi, i am working i public sector bank, do work ex of public sector bank counts as experience(4 yrs) required for CFA charter???

56

helo friends is it safe to order schweser material from om book shop


Welcome to OM Book Center : CFA, FRM, CPA,...
Ombookcenter





57

We wish everybody a happy and successful year 2014

58

FinShiksha - Cash Conversion Cycle


The video explains the intuition behind Cash Conversion Cycle



FinShiksha - Cash Conversion Cycle
YouTube



59

Hi, I am working in a public sector bank as PO.How will CFA benefit my career? Please help...i am really confused

60

CFA Level 1 Practice Question – 1


Veil Ltd is in the business of automobile Tire retreading. The machine that they are currently using has become faulty and less efficient. The cash flows that the current machine can provide are (in $ 000s) Year 1: $100; Year 2: $80; at the end of the year 2 this machine can be sold for a scrap value of $25.


The company has an option of replacing the existing machine with a new one with a life of 5 years, in which case the old machine can be sold for $40. The new machine would cost $450. The cash flows expected from the new machine are Year 1: $140, Year 2: $150; year 3: $160; Year 4: $140; year 5: $130. At the end of 5th year the new machine would be sold for a scrap value of $30.


The appropriate discount rate for the project is 9%. If Veil chooses NOT to replace the old machine then Veil's NPV (compared to replacing with NEW machine)


a) Will be higher by $8.71

b) Will be higher by $ 48.71

c) Will be lesser by $12.33

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@Nirmal_Analyst

CFA Level 1 Practice Question €“ 1



Veil Ltd is in the business of automobile Tire retreading. The machine that they are currently using has become faulty and less efficient. The cash flows that the current machine can provide are (in $ 000s) Year 1: $100; Year 2: $80; at the end of the year 2 this machine can be sold for a scrap value of $25.



The company has an option of replacing the existing machine with a new one with a life of 5 years, in which case the old machine can be sold for $40. The new machine would cost $450. The cash flows expected from the new machine are Year 1: $140, Year 2: $150; year 3: $160; Year 4: $140; year 5: $130. At the end of 5th year the new machine would be sold for a scrap value of $30.



The appropriate discount rate for the project is 9%. If Veil chooses NOT to replace the old machine then Veil's NPV (compared to replacing with NEW machine)



a) Will be higher by $8.71



b) Will be higher by $ 48.71



c) Will be lesser by $12.33



Answer A: The adjusted cash flow for old project is Y1: 100; Y2: 80 +25 (scrap value); For replacement project is Y0: -450 (cost of new m/c)+ 40 (sale of old machine); Y1:140; Y2:150; Y3: 160; Y4:140; Y5:130+30 (scrap value of new m/c);

Discounting existing project by 9% we would get: $180.12; New project by 9% we would get: $171.41; the difference $8.71 is the saving by NOT choosing replacement project.

Note: In replacement project the purchase of new machine $450 and sale of old machine at $40 happens at Time Zero and NOT year 1;