PVGO Q

CFA Level II
#1

I forgot how to derive the PVGO, I just remembered the 1/r part, but I guessed B, 1109 or something like that. Any takers?

#2

I siad it was 667, the stock price was 4000 and the E/R= 3333 or something

#3

right

#4

I just picked the biggest number…

#5

Smarshy Wrote: ------------------------------------------------------- > I siad it was 667, the stock price was 4000 and > the E/R= 3333 or something Same here

#6

it was 883 or something close to that.

#7

it was like 833 or something like that- yeah it was 4k - like 3 thousand and something- it (i think and felt good bubbling it in) was A

#8

damn.

#9

Maybe wrong question? The lowest answer was 883, which was A. Everything else was higher. I really cant recall though.

#10

sorry, it was A, or the lowest number

#11

833 here

#12

1911

#13

883 I got after taking E0… then checked the schweser quicksheet, which put E1 in the formula… so not sure… any opinions?

#14

and y everything else was way higuher it was

#15

For that vignette with the two phases of growth did you base your PVGO calculations and the others based on the 2nd phase figures. I think the question said something like “at the end of phase 1” but i can’t remember

#16

833 was the 1/r computation, which is value of company as is, in other words no groth oppotunities. The PVGO was the diff.

#17

e/r was greater than 833??? pretty sure… what were the earnings, anyone remeber?

#18

But the formula is not 1/r, it’s Earnings / R. That came to 3333 or something. Stock value was 4000, so PVGO is the diff

#19

v = e/r + pvgo, don’t remember the #s

#20

price was 4000, e/r was around 2100