increasing accounts receivables, decreasing receivables turnover ratio and increasing days sales receivables is said to be a warning sign of low quality financial statements. but it is also mentioned that decreasing accounts receivable is a warning sign as it indicates that ...
SSEI QForum Latest Questions
The value of a call option on futures is equal to the value of a portfolio with a long bond position and a short futures position. The answer says that the about statement is true. but shouldn’t it be long futures ...
Post-merger value: VA* = VA + VT + S – C Is this formula in the Nov 2023 curriculum?
“A researcher tries many different modelling techniques, backtesting each of them, and then picking the best-performing model without accounting for model selection bias.” If this is an example of what causes data snooping, then how are we supposed to choose the ...
A decrease in the value of available-for-sale securities that bypass the income statement would artificially increase the net income and, consequently, ROE. Book value is unaffected as the decrease is accounted for in the OCI section of shareholder’s equity. Can ...
Where can i find more mock exams? please list out some vendors that provide free mocks for cfa level 2
Assuming pure expectations theory holds good, and the forward curve is upward sloping, an investor who buys and holds to maturity will earn a return: A) less than YTM B) greater than YTM C) equal to YTM The answer is B. But I thought ...
“EBITDA overestimates cash flow from operations if working capital is growing” can someone explain this?
Exhibit 1 Income Statement Excerpts, Years Ending 31 December ($ millions) 20X3 20X2 EBITDA 275 250 Depreciation expense 82.5 75 Operating income 192.5 175 Interest expense 16 14.9 Income before taxes 176.5 160.2 Income taxes 56.5 48 Net income 120 112.1 Common dividend 48 44.8 Exhibit 2 Selected Balance Sheet Data, Years Ending 31 December ($ millions) Net investment in fixed capital 165.3 Net ...
Q 29, Item Set – Yandie Izzo, Page 104, FCF, Equity. I am not able to understand how they calculated FCFE. Where did 2000 net borrowing come from? I thought whenever target debt ratio is given we must use that. Can someone ...