Operating cycle = No. of days of inventory + No. of days of receivables so ,COMPANY A has operating cycle of 100 ,while COMPANY B has 145 As looking at the equation it could be because of higher days of receivables or higher days of inventory, question entertain the later one So B is the right answRead more
Operating cycle = No. of days of inventory + No. of days of receivables
so ,COMPANY A has operating cycle of 100 ,while COMPANY B has 145
As looking at the equation it could be because of higher days of receivables or higher days of inventory, question entertain the later one
correct answer is c . because Donnigan lied about that he cleared the exam to his employer which violates his duty to employer and subsquently committed professional misconduct the thing he didn't lied about was about his Candidacy in the CFA Program
correct answer is c .
because Donnigan lied about that he cleared the exam to his employer which violates his duty to employer and subsquently committed professional misconduct
the thing he didn’t lied about was about his Candidacy in the CFA Program
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally. in question it’s clear when the information was shared on firms website and official facebook page it was available to all the clienRead more
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally.
in question it’s clear when the information was shared on firms website and official facebook page it was available to all the clients equally and anyone can access it
But sharing on his personal twitter account is violation as not all clients follows him which mean when info was shared, only few got the access which is a direct violation of fair dealing
(For example when CFA institute release a notice, all candidate can access it on the official website. But when they issue the same notice via the personal twitter of an chaterholder ,we may not have known about it ,because we dont follow him and that violates fair dealing.
Is option A correct? If yes then,in question it is said that the low fee trade are comparable to that of other brokers and carter believe he offer effective execution with that fee ,so carter is free to use this broker. with this option B rules out ans option C is wrong Because as per standard III(Read more
Is option A correct?
If yes then,in question it is said that the low fee trade are comparable to that of other brokers and carter believe he offer effective execution with that fee ,so carter is free to use this broker.
with this option B rules out
ans option C is wrong Because as per standard III(A) brokerage is an asset of the client and is used to benefit the client, not the manager, such practice does not violate a duty of loyalty to the client. Members and candidates are obligated in all situations to disclose to clients their practices in the use of client brokerage commissions.But doing excess trading just for the sake of meeting commission commitment doesn’t satisfy the standard
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally. in question it's clear when the information was shared on firms website and official facebook page it was available to all the clienRead more
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally.
in question it’s clear when the information was shared on firms website and official facebook page it was available to all the clients equally and anyone can access it
But sharing on his personal twitter account is violation as not all clients follows him which mean when info was shared, only few got the access which is a direct violation of fair dealing
(For example when CFA institute release a notice, all candidate can access it on the official website. But when they issue the same notice via the personal twitter of an chaterholder ,we may not have known about it ,because we dont follow him and that violates fair dealing.
Correct answer is b i.e 1.25 First we will calculate basic EPS than Dilutive EPS = N.I / No of common share o/s =125000/100000 =$1.25 dilutive EPS=[N.I + convertible debt int. (1-t)]/(no.of common share o/s + convertible debt) = [125000+ (1,000×1,000×0.07)×(1-0.4) ] /(100000+25000) = $1.336 SinceRead more
Correct answer is b i.e 1.25
First we will calculate basic EPS than Dilutive EPS
Standards I(A), Knowledge of the Law : “Members and Candidates must comply with all applicable laws, rules and regulations, including the CFAI Code of Ethics and Code of Standards. So any violation comitted directly violates standard 1 (a)
Standards I(A), Knowledge of the Law : “Members and Candidates must comply with all applicable laws, rules and regulations, including the CFAI Code of Ethics and Code of Standards.
So any violation comitted directly violates standard 1 (a)
WACC=wdKd(1−t)+weKe Kd = 8 x (1-.40) =4.8 For calculating ke we need to find out asset beta first and then releverage it βasset = βequity/{(1+ (d/e)(1-t)} = 0.9 / (1+ {1.8 x(1-.35)}) = 0.4147 βproject= 0.4147 x [1 + 1.3(1-.4)] =0.7382 Therefore ke = Rf + (MRP) β =6 + 7(0.7382) = 11.1674 so, put itRead more
WACC=wdKd(1−t)+weKe
Kd = 8 x (1-.40) =4.8
For calculating ke we need to find out asset beta first and then releverage it
To put it nicely in words ,except from a book A dividend is a distribution to shareholders of retained earnings that a company has already created through its profit-making activities. Thus, a dividend is not an expense, and so it does not reduce a company's profits. Because a dividend has no impactRead more
To put it nicely in words ,except from a book
A dividend is a distribution to shareholders of retained earnings that a company has already created through its profit-making activities. Thus, a dividend is not an expense, and so it does not reduce a company’s profits. Because a dividend has no impact on profits, it does not appear on the income statement. Instead, it first appears as a liability on the balance sheet when the board of directors declares a dividend. Then, after the company pays the dividend, it still only has an impact on the balance sheet, where the amount in the retained earnings line item is reduced (as well as the amount of cash, assuming that the dividend is paid in cash).
The only way in which a dividend might reduce profits is from the perspective of future profits – paying out large dividends might starve a company of the cash that it needs to fund future growth, though only if the profits from the future growth exceed the company’s cost of capital. In other cases, where a company simply has excess cash for which it cannot find a use, the distribution of that cash as dividends should not have any impact even on its future profit potential.
Inventory turnover
Operating cycle = No. of days of inventory + No. of days of receivables so ,COMPANY A has operating cycle of 100 ,while COMPANY B has 145 As looking at the equation it could be because of higher days of receivables or higher days of inventory, question entertain the later one So B is the right answRead more
Operating cycle = No. of days of inventory + No. of days of receivables
so ,COMPANY A has operating cycle of 100 ,while COMPANY B has 145
As looking at the equation it could be because of higher days of receivables or higher days of inventory, question entertain the later one
So B is the right answer
See lessEthics CFA Level – 1 Ques
correct answer is c . because Donnigan lied about that he cleared the exam to his employer which violates his duty to employer and subsquently committed professional misconduct the thing he didn't lied about was about his Candidacy in the CFA Program
correct answer is c .
because Donnigan lied about that he cleared the exam to his employer which violates his duty to employer and subsquently committed professional misconduct
the thing he didn’t lied about was about his Candidacy in the CFA Program
See lessRelating Corporate finance CFA L1
Ofcourse it does, look at the formula of OL . it's =(SALES- VC)/(SALES -VC-FC)
Ofcourse it does, look at the formula of OL .
it’s =(SALES- VC)/(SALES -VC-FC)
See lessCfa level 1 Ethics
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally. in question it’s clear when the information was shared on firms website and official facebook page it was available to all the clienRead more
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally.
in question it’s clear when the information was shared on firms website and official facebook page it was available to all the clients equally and anyone can access it
But sharing on his personal twitter account is violation as not all clients follows him which mean when info was shared, only few got the access which is a direct violation of fair dealing
(For example when CFA institute release a notice, all candidate can access it on the official website. But when they issue the same notice via the personal twitter of an chaterholder ,we may not have known about it ,because we dont follow him and that violates fair dealing.
See lessCfa level 1 Ethics
Is option A correct? If yes then,in question it is said that the low fee trade are comparable to that of other brokers and carter believe he offer effective execution with that fee ,so carter is free to use this broker. with this option B rules out ans option C is wrong Because as per standard III(Read more
Is option A correct?
If yes then,in question it is said that the low fee trade are comparable to that of other brokers and carter believe he offer effective execution with that fee ,so carter is free to use this broker.
with this option B rules out
ans option C is wrong Because as per standard III(A) brokerage is an asset of the client and is used to benefit the client, not the manager, such practice does not violate a duty of loyalty to the client. Members and candidates are obligated in all situations to disclose to clients their practices in the use of client brokerage commissions.But doing excess trading just for the sake of meeting commission commitment doesn’t satisfy the standard
See lessCfa level 1 Ethics
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally. in question it's clear when the information was shared on firms website and official facebook page it was available to all the clienRead more
Option A is correct and the reason being when you share information to clients it should be disseminated to all the clients fairly , and all should be treated equally.
in question it’s clear when the information was shared on firms website and official facebook page it was available to all the clients equally and anyone can access it
But sharing on his personal twitter account is violation as not all clients follows him which mean when info was shared, only few got the access which is a direct violation of fair dealing
(For example when CFA institute release a notice, all candidate can access it on the official website. But when they issue the same notice via the personal twitter of an chaterholder ,we may not have known about it ,because we dont follow him and that violates fair dealing.
See lessFRA
Correct answer is b i.e 1.25 First we will calculate basic EPS than Dilutive EPS = N.I / No of common share o/s =125000/100000 =$1.25 dilutive EPS=[N.I + convertible debt int. (1-t)]/(no.of common share o/s + convertible debt) = [125000+ (1,000×1,000×0.07)×(1-0.4) ] /(100000+25000) = $1.336 SinceRead more
Correct answer is b i.e 1.25
First we will calculate basic EPS than Dilutive EPS
= N.I / No of common share o/s
=125000/100000
=$1.25
dilutive EPS=[N.I + convertible debt int. (1-t)]/(no.of common share o/s + convertible debt)
= [125000+ (1,000×1,000×0.07)×(1-0.4) ] /(100000+25000)
= $1.336
Since $1.336 is greater than the basic EPS of $1.25, the bonds are antidilutive. Thus, diluted EPS = basic EPS = $1.25.
See lessQuestion number 42
Standards I(A), Knowledge of the Law : “Members and Candidates must comply with all applicable laws, rules and regulations, including the CFAI Code of Ethics and Code of Standards. So any violation comitted directly violates standard 1 (a)
Standards I(A), Knowledge of the Law : “Members and Candidates must comply with all applicable laws, rules and regulations, including the CFAI Code of Ethics and Code of Standards.
So any violation comitted directly violates standard 1 (a)
See lessCost of capital
WACC=wdKd(1−t)+weKe Kd = 8 x (1-.40) =4.8 For calculating ke we need to find out asset beta first and then releverage it βasset = βequity/{(1+ (d/e)(1-t)} = 0.9 / (1+ {1.8 x(1-.35)}) = 0.4147 βproject= 0.4147 x [1 + 1.3(1-.4)] =0.7382 Therefore ke = Rf + (MRP) β =6 + 7(0.7382) = 11.1674 so, put itRead more
WACC=wdKd(1−t)+weKe
Kd = 8 x (1-.40) =4.8
For calculating ke we need to find out asset beta first and then releverage it
βasset = βequity/{(1+ (d/e)(1-t)}
= 0.9 / (1+ {1.8 x(1-.35)})
= 0.4147
βproject= 0.4147 x [1 + 1.3(1-.4)]
=0.7382
Therefore ke = Rf + (MRP) β
=6 + 7(0.7382)
= 11.1674
so, put it in formula
WACC = (4.8 x 1.3 + 11.167 x 1)/2.3
=7.568%
Dividend
To put it nicely in words ,except from a book A dividend is a distribution to shareholders of retained earnings that a company has already created through its profit-making activities. Thus, a dividend is not an expense, and so it does not reduce a company's profits. Because a dividend has no impactRead more
To put it nicely in words ,except from a book
A dividend is a distribution to shareholders of retained earnings that a company has already created through its profit-making activities. Thus, a dividend is not an expense, and so it does not reduce a company’s profits. Because a dividend has no impact on profits, it does not appear on the income statement. Instead, it first appears as a liability on the balance sheet when the board of directors declares a dividend. Then, after the company pays the dividend, it still only has an impact on the balance sheet, where the amount in the retained earnings line item is reduced (as well as the amount of cash, assuming that the dividend is paid in cash).
The only way in which a dividend might reduce profits is from the perspective of future profits – paying out large dividends might starve a company of the cash that it needs to fund future growth, though only if the profits from the future growth exceed the company’s cost of capital. In other cases, where a company simply has excess cash for which it cannot find a use, the distribution of that cash as dividends should not have any impact even on its future profit potential.