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quant review

nice job gents. last year there wasn’t much IFRS stuff in FSA- i feel like there’s a boatload more this year on differences. i had just learned last year hyperinflationary = do it temporal. let me tell you, i got stopped dead in my tracks on that one. restate for inflation and translate AC under IFRS rules.

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banni,

wanna make a comprehensive thread of all possible GAAP vs. IFRE differences across topics? that would be killer.

later

ChocoPie

If the growth rate in dividends is too high, it should be replaced with:

A) the average growth rate of the industry.

B) a growth rate closer to that of gross domestic product (GDP).

C) the growth rate in earnings per share.

B) a growth rate closer to that of gross domestic product (GDP).

CP

niraj- that’d be awesome. i want to say it got started before, but never really put together amazingly. we did a huge thread last year on ss7 adjustments that was good. those help. i can thumb through my notecards and try to do something tomorrow.

swap- i take A.

C? dunno what this q relates to. my thinking is something to do with the DDM models where earnings growth has to follow dividend growth.

CP is correct. B

bannisja Wrote:
——————————————————-
> niraj- that’d be awesome. i want to say it got
> started before, but never really put together
> amazingly. we did a huge thread last year on ss7
> adjustments that was good. those help. i can
> thumb through my notecards and try to do something
> tomorrow.
>
> swap- i take A.

super. gonna make SS7 my beeyotch. it seems to be the most real-world equity research relevant piece of this L2 curriculum. its odd though, that whenever i have visited an MBA program, i constantly overhear kids/profs discussing regressions….

now explain the sense in that… taking it all the way to the GDP level not industry? this stuff is so not intuitive. AHHHHHHHHHHHHHHHHHHHHHHH

A? avg rate

i think this q is from emerging mkts valuation. why the F is it not option A - industry? they ask us to use industry values in calculating the risk-free rate don’t they? frickin A!!!!

You asked a golden question mate. I bet the ans to this should have been A

I chose B also because somewhere in the text on Equities it says that if dividends appear to be too high, you value the firm as if it were a mature company in the business cycle, which in turn is correlated with GDP growth.