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Level I

Mock exams

I scored 68% in schweser mock tests and 61% in cfa online mock tests (which they have given on their site ) …wht performance mine have based on tht ??

Capex formula

Capex =current PP&E - PP&E from last period + depreciation expense for the period. Why do we add depreciation expense back?

my reasoning says substrac it, because:

capex = current PPE - depreciation expense on t - PPE from last period (which already has a substraction of depreciation expense for t-1)

thanks in advance

Gordón Growth Model

What is the reasoning for subtracting g for the perpetual DDM???

thanks in advance

Floating rate notes vs fixed coupon bonds

“The values of FRN are more stable than those of fixed rate debt of similar maturity because the coupon interest rates are reset periodically based on a reference rate”. Shouldnt it be LESS stable than those of fixed rate because of the continuous reset of FRN????

Thanks in advance

Bid-ask prices question

Marketable/aggressive pricing: limit order below the best bid price and above the best ask price, because it is likely to execute fast…. wrong right???? that is the definition of BEHIND the market…. where the  limit order below the best bid price and above the best ask price, and you need the price to move so your order executes…… 

then, if I am right, a aggressive pricing should be above the best bid, and below the best aks… right????

and for best bid = highest price to buy ; ask = lowest price to sell, right?

Thank you in advance

Cost of yields: fixed income

why is it better for a firm to redeem bonds when the yields go down? Because, yes, they will be able to reissue bonds at a lower coupon rate but for them to do that they bought the bond at a higher price, so where is it actually the gain? I thought they should buy the bonds when the yields go up, and you can buy the bond at a lower price

Over-undervalued question

Fair value > market value –> undervalued

Fair value > expected value –> overvalued……. WHY???? I dont understand it….. shouldnt it be like the one above!!! 

(this is the same as saying: required rate of return < expected return, right?

Thank you in advance…. 

Analyst Prep - Any good

I got an email from Analyst Prep offering a package for 100 bucks 

I mainly want it for the Qbank, has anyone ever used this? I dont want to get it only to find out all the questions are lob balls. I want to be challenged