Passed most of the schweser so far, 50% on this thing, 50 fucking percent. Could they have asked any more tiny topics? After that performance I’m ready to throw in the towel, never felt like i knew so little after spending so much god damn time studying. Also felt like there was at least one or two errors, I remember one question stating something about capitalizing interest serving to increase EBIT? What the fuck is that? EBIT is before interest…
I remember many years ago I go a 55% on the first Level II sample. I think there were only 30 questions on that and I was quite demoralized. Pulled my socks up and got more than 70% on each section on the actual exam (I am pretty sure I scored more than 90% overall, but I’ll never know) You have time on your side, make it count. Good luck!
I got a 53% on one of the CFA samples (or maybe mocks, can’t remember) for Level 1, but ended up passing the real thing. So don’t get too alarmed…just make sure to go over the questions you missed.
Ya I had the same thing happen. 61% FSA nailed me. I felt like I haven’t seen many of those type of topics before. I screwed up on AA and Corp Fin. I made stupid errors on several problems and second guessed myself on two other problems. I was really frustrated because I knew the material but screwed it up badly. There were 4 questions that I had no reason to get wrong other than my stupidity. Although I kinda took this under pressure as my gf was rushing me to get done so we could go to the beach… Also, I wouldn’t recommend trying to do this in starbucks… (nothing worse than a baby crying right behind you to make you loose focus).
What’s the answer to the EBIT & Capitalizing question? I know that if you treat this kind of expense as an operating one , you’d treat it as a normal cost of operation ( SG&A) , so your EBIT would get hit. What happens to EBIT whenyou capitalize such expense?
When I took L1 I never passed a sample or mock exam but passed with flying colors on exam day. A lower score on the sample motivated me to really dig into the areas I wasn’t as sharp on so I was ready when I took the test. I think sometimes passing the samples and mocks make people complacent about the real exam. You’ll be fine.
when you capitalize interest - interest expense gets reduced, assets are increased, and depreciation is increased. as a result EBIT would go up. Interest goes down. EBIT / Int would be higher.
Why would EBIT go up as a result as a result of a reduction in interest expense and an increase in depreciation. Interest expense is irrelevant to EBIT and higher depreciation would cause EBIT to be lower, or am I missing something?
Not had my coffee… you are right. Interest is after the fact. but depreciation is before. so EBIT would go down…
Soft Dollars vignette destroyed me, i need to re-read that, i got 1/6. Also got reamed on time-series, out of all the quant questions they could ask, I get a vignette on time series… whatever. I aced equity but i had to guess on the flowthrough p/e question, i don’t understand the formula they used. In all my notes i see (1/r+[(1 - flow thru)*(Inflation)]), yet they had used (r-i) in place of “r” in the denominator, I have never even seen this shit before. I was really kind of pissed off at the level of detail they went into on tiny topics, i mean seriously what the fuck? Out of the breadth of material on that test it seems awful unfair to grill in that level over small areas, you would think it would be more high level, and if detailed at all it would be in the bigger sections. How many of you are going to remember how to calculate equity reversion after taxes or WHICH income property produces the most cash flow?
the r in your formula is real interest rate
I aced equity but i had to guess on the flowthrough p/e question, i don’t understand the formula they used. In all my notes i see (1/r+[(1 - flow thru)*(Inflation)]), yet they had used (r-i) in place of “r” in the denominator, I have never even seen this @#$%& before. I guess the formula in your notes should change to (1/rr+[(1 - flow thru)*(Inflation)]) where rr= real rate. then you will notice they gave you r (nominal) and i inflation. calculated rr=r-i approximately.
cpk123 Wrote: ------------------------------------------------------- > I aced equity but i had to guess on the > flowthrough p/e question, i don’t understand the > formula they used. In all my notes i see (1/r+[(1 > - flow thru)*(Inflation)]), yet they had used > (r-i) in place of “r” in the denominator, I have > never even seen this @#$%& before. > > > I guess the formula in your notes should change > to > (1/rr+[(1 - flow thru)*(Inflation)]) > > where rr= real rate. > > then you will notice they gave you r (nominal) and > i inflation. > calculated rr=r-i approximately. I got stuck on that as well, but managed to figure it out. That equal firm question was the only one that I got wrong there. I still don’t quite follow the logic if you had 10 firm concentration ratio amount to 10%, yet 313 equal firms in the entire industry… I understood to take 1/herfindahl, but when I compared it to the concentration ratio it didn’t make sense to me.
the “r” in the flow through problem should be the real rate of return, IIRC. Didnt do the sample exam, but if they gave you nominal and inflation, i would think you need to derive the real return
>>Out of the breadth of material on that test it seems awful unfair to grill in that level over small areas Exactly what the real thing is like. CFAI wants to ensure that you didn’t just study the big topics.
Chi Paul Wrote: ------------------------------------------------------- > >>Out of the breadth of material on that test it > seems awful unfair to grill in that level over > small areas > > Exactly what the real thing is like. CFAI wants > to ensure that you didn’t just study the big > topics. i honestly think they get pissed at people like me who give the finger to their curriculum and focus on schweser. WOuldnt surprise me if they bought schweser notes, looked at them, and intentionally threw in concepts that were not heavy in the schweser…
CFABLACK - Concentration ratio - is market share based. Also it is the top N firms not all firms. Herfindahl is Market Share^2. and for ALL firms in the industry. you have 10 firms having 20%. so average=2% per company. total Herfindahl = 10*0.02^2 = 0.004 Total Herfindahl = 0.0032 so you have 0.0008 accounted for by the remaining 300 or so companies. each companies market share = 1.63% by no means is it a concentrated industry.
smileygladhands Wrote: ------------------------------------------------------- > Chi Paul Wrote: > -------------------------------------------------- > ----- > > >>Out of the breadth of material on that test > it > > seems awful unfair to grill in that level over > > small areas > > > > Exactly what the real thing is like. CFAI > wants > > to ensure that you didn’t just study the big > > topics. > > > i honestly think they get pissed at people like me > who give the finger to their curriculum and focus > on schweser. WOuldnt surprise me if they bought > schweser notes, looked at them, and intentionally > threw in concepts that were not heavy in the > schweser… Yes welcome to L2. I haven’t taken the sample yet, but I am assuming it will be similar to the real thing (maybe even easier). 80’s in Schweser Volume 1 is no guarantee of a pass as it was at L1.
Smiley, i have heard from people that they do EXACTLY that. Schweser is reviewed and topics are slected that are lightly covered to exploit test provider inadequacies. CPK, having rr would have solved that, i think i was tired and not thinking clearly plus starting off by bombing the soft dollar vignette just messed my brain up, obviously real = nom - inflation, no brainer, stupid for me to not have recorded the notes properly.
markCFAIL Wrote: ------------------------------------------------------- > Smiley, i have heard from people that they do > EXACTLY that. Schweser is reviewed and topics are > slected that are lightly covered to exploit test > provider inadequacies. I’ve heard from people that this is nonsense. CFAI would not let a 3rd party provider dictate what it does or doesn’t test. It’s simply a matter of ensuring that candidates don’t game the exam and focus only on the big topics.