RI vignette

CFA Level II
#1

3600 RI -3000 EVA 31$ share price? wording questions - one about clean surplus what was the answer tehre?

#2

i think so

#3

oh man i hated that problem, i think i ended up putting something about adjusting the net income

#4

If I remember right, I chose the answer about capitalizing R&D. Was that an answer?

#5

Don’t know the answer but put in something related to leases…

#6

there was that wonky crap about capitalizing instead of expensing software, but more fundamental was the adjust book value one? somehow i convinced myself into that… i forget what the question was anyone remembe

#7

i think there was capitilazing r&d, adjusting net income, accounting for off balance sheet, and something else

#8

yeah i went off b/s… who knows

#9

I think I bombed this vignette. Did very badly. I could not get the first two questions nailed- the one with the RI and the intrinsic value calculation. Even the other one that was the wordy cra*—don’t even remember the question now, but it had something to do with clean surplus relationship. I got so brain f*cked reading it, that I convinced myself that some answer was the right choice…hope my guess is right. Don’t even remember what I chose. Anyone knows the answers?

#10

I bombed it. Only got the EVA stuff right - for some reason I have that down pat.

#11

i picked the R&D one for the clean surplus relation, but i’m not sure. that was a tough problem.

#12

Did any of the RI calculations inolved using a 2-stage model? I only did a one stage which was BV + BV(ROE-re)/Re - g?

#13

for the one about clean surplus, i chose comprehensive income. anything else requires an adjustment, which do not support clean surplus directly.

#14

What was the ans to the Clean Relationship question?

#15

I don’t think it was the answer was comprehensive income as it said it would be zero if the clean surplus relation held?

#16

I remember the answer is B–31 I use a lot of time…

#17

dirtydirty Wrote: ------------------------------------------------------- > 3600 RI > -3000 EVA > 31$ share price? > > wording questions - one about clean surplus what > was the answer tehre? same answer i put down. i got mostly 100% scores on my fsa equity and ethics practice exams. i hope that translates into a pass but i got slaughtered in the afternoon session.

#18

What is the most likely reason for RIV to give the wrong answer? a) dirty surplus items b) bad cost of capital c) inadequate earnings forecast d) missing intangible assets from the balance sheet

#19

xinwang0520 Wrote: ------------------------------------------------------- > I remember the answer is B–31 > I use a lot of time… This question sucked up lots of my time when I was already massively behind, and as a result in wnet into something of a blind panic for the next 45-60 minutes and can’t remember much. The formula I was using just didn’t give me any useful answers until I went back to the question at the end of the exam with about 45-50 seconds left, realised I hadn’t been dividing equity by # of shares (!!!) chucked the numbers in the equation, calculator said 31 looked at answers, cried tears of relief (figuratively) snatched up eraser, frantically scrubbed off ‘D’, and coloured in that little ‘B’ oval as fast as I could. 5 seconds left on the shot clock. Bam. Pencils down. Still failed though.

#20

dirtydirty Wrote: ------------------------------------------------------- > 3600 RI > -3000 EVA > 31$ share price? > > wording questions - one about clean surplus what > was the answer tehre? My answers exactly. In fact, I didn’t figure it out at first so went back at the end and got it. I’m pretty sure they are correct.