Why doesn't this Income statement from Cisco (2013) consider Depreciation
Here is Cisco’s 2013 Income statementhttps://www.sec.gov/Archives/edgar/data/858877/000085887713000049/csco-2...If you see, they calculate Net Income without subtracting Depreciation. They do have...
View ArticleT test, chi square value problem
Was practicing questions on the CFA study website, im using Kaplan materials. However some of the questions for t test and chi square requires values for df 220 or some other odd numbers that isn’t...
View ArticleFRA completed .
Hello all membersI have completed FRA , It was the first book I studied , What is your recommended subject I can study after FRA ? Should I go for CF thin Equity or go for QM . QM is more challenging...
View ArticleWiley - CMO Prepayment Risk Question
Hi,Consider the following statements:Statement 1: A pool of mortgage loans serves as collateral for collateralized mortgage obligations (CMOs).Statement 2: In a sequential-pay CMO, the tranche with the...
View ArticleWACC of a specific project
Hi everybody,I am a bit confused with one concept and would like to confirm something with you:I always thought that when we were computing the WACC of a project that a company wanted to do, we were...
View ArticleFRA-Inventories
Hi,Could anyone please help me to understand why Inventories are measured at “Lower of cost or net realizable value” under IFRS and “lower of cost or market value” under US GAAP?
View ArticleFCF vs. FCFE vs. FCFF
Hi,the difference between free cash flow (FCF) and free cash flow to equity (FCFE) is not quite clear to me. The formula for calculating FCF is: CF from operating activities - CF from investing...
View ArticleCommon vs Preferred Shares
With common shares, however, a larger portion of shareholders’ total return (or all of their total return for non- dividend shares) is based on future price appreciation and future dividends are...
View ArticleDo you include a letter as part of the last 4 digits in passport number?
Good day to all. I would like to ask if you included the letter in your passport number when you registered for the CFA Level 1 exam. My passport number has a letter at the end, and I am a little...
View ArticleEquity infusion and FCFE
Hey everyone!Could you be so kind to explain me 1 thing.Why doesn’t equity infusion affect FCFE?Imagine a company with Cash 100 and Equity 100. Calculating EV gives us 0, but further adjustments for...
View ArticleUnderstanding Defeasance
So let’s say I am a borrower. I pay 6% interest on the mortgage I have on my commercial property. I decide to repay my loan balance say $100. But because of defeasance provision I have to “provide...
View ArticleFRA-Inventories and Long Lived assets
Hi,I am working on inventories and long-lived assets and keep on mixing the different treatments by IFRS and US GAAP. What’s the best way to remember how the inventories and long-lived assets are...
View ArticleShelf Registration
A Shelf Regstration is when a company issues equity directly in secondary markets, so the issuer is actually raising new capital, this is a primary market transaction, right?
View ArticleEffective yield
Isn’t it more useful (and correct) in practice to calculate the effective yield of each bond?I see in some cases we simply see what the 6-month rate is and then we simply double that to get to the...
View ArticleCFA Questions
Are the EOCQ from CFA and the questions from CFA site really close and similar to the questions I should expect to face in exam day?Because I`m also using when I have the time Mark Meldrum`s question...
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Degree Of Financial Leverage
In page 138, example 2, the solution didn`t made any sense for me, where does 30 billion of operating income came from?
View ArticleHedge Funds-hurdle rate
Hi,Could anyone help me to understand why we are not deducting 5% of $60 million in the 2nd year to get to the incentive fees in the below question?The hedge fund had an initial investment of $60...
View ArticleDepreciation expense
Hello,In Wiley book 3 reading of long lived asset example 2-2Why divided the cost of new component although he said that calculate the depreciation in 2 scenario , in case using component method , and...
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