Level I


anyone know how to do this question
For the year ended 12/31/2013, Stack reported Net Income of $25,000. On
1/1/2013, Stack had 22,000 common shares outstanding and 10,000 preferred
shares outstanding. Stack issued 4,000 common shares on 6/30/2013. Stack paid
$5,000 of preferred dividends and $9,000 of common dividends during 2013.
During fiscal year 2013, Stack had 10,000 outstanding in-the-money options with
an average exercise price of $10. The average stock price during the year was
$20. Calculate the diluted EPS.

When should you move onto the next section

I started off with Quant sections (time value of money and discounted cash flows) and understood that fairly easily.  I completed the readings in the CFA book and schweser.  I also completed EOC questions in both books along with several Q-bank quizes.

I figured i would come back to the probabity because I have a hard time with that.

I moved onto the Financial Reporting and did the same as above.  I was averaging about 75% on EOC questions and Q-Bank but I completed the FR section of an old mock exam and got about a 55… 

Understanding Financial Ratios

Does anybody know or have a quick method to know the affect of an increase or decrease in either the numerator or denominator on a financial ratio?

I usually will use a made up example to calcuate it but i’m looking for a quicker way to know…

Very basic example : The current assets are $6 mm and the current liabilities are $4 mm.  What is the effect on the Current Ratio if current assets rises to $8 mm?

My train of thought – CA/CL = CR …  6/4 = 1.5   with the increase … 8/4 = 2 

So the CR is higher..

Calculating stock return

I know the basic stock return calculation but I was wondering how I would calculate a short position divided in 1/2 and then taken in 1/3.

The short entry would be 150@235.29 and short 100@233.18
Then profit taking would be 100@230.77, 50@228.7199, 100@ 231.2092

What is the total return to the investor?

IFT Lectures (You tube)

Hi Guys,

I stumbled across these while studying Quants. 

I found them quite useful. Might be of help to some here. 

They follow the CFA reading as well which is very handy. 

CFAI 2015 level 1 textbooks for sale - hong kong


I am selling my 2015 CFAI level 1 textbooks. 6 books in total, in almost new condition. I am located in Hong Kong. Asking for HK$500. Let me know if interested, thanks!

Economic profit under monopolistic competition

Firms operating in monopolistic markets produce which type of profits?

  1. Positive economic profits

  2. Negative economic profits

  3. No economic profits

Answer: 1

In a monopolistic industry, positive economic profits are possible and are a function of the price consumers are willing to pay minus the monopoly’s average cost (AC) curve


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