Grinold Kroner

What did they mean with income return, repricing return etc?

div yield, p/e ch. (which you had to derive). and did they combine two categories… never totally sure.

got owned on this…lots of distractors on this, and I was definitely distracted

florinpop Wrote: ------------------------------------------------------- > What did they mean with income return, repricing > return etc? The book explain those things very well. But I never though that they were going that way. therefore< I never focus on the logic but calclation. I may only get only on on the correct answer.

i couldnt figure how to derive the change in P/E … how were you supposed to do that?

income return = d/p - %share repurchase nominal return = inflation + real growth repricing return = %change in P/E

yeah, next year, less focus on huge lists and really obscure, common sense topics… more focus on the many, simple formulae that are there.

I didn’t get the % change in P/E either I think I just put 2.7% pure guess

i took 1 number to subtract the other two. i think i took the topmost # like 12%. not quite sure if it was correct.

Slash Wrote: ------------------------------------------------------- > income return = d/p - %share repurchase > > nominal return = inflation + real growth > > repricing return = %change in P/E Then I only missed the first one. Yeah I should take away %share, just common sence.

I wasn’t fully sure of what they wanted me to do here. I put dividend yield for sure and don’t even remember what I did for the other two.

There is a great question about this in the old L3 exams. I think 2006, in the essay part. Income = Dividend yield - Delta S (Change in shares) Repricing = p/e multiple (like the market will pay more or less for earnings) and i think the other one was growth (g) but i cant remember.

Slash Wrote: ------------------------------------------------------- > income return = d/p - %share repurchase > hmmm. that looks familiar. but i think i saw div yield as income return on a practice question… might not have checked answer though (i.e. i might have just assumed)

how did you calculate change in P/E?

florinpop Wrote: ------------------------------------------------------- > how did you calculate change in P/E? basically, had everything else. so u solve for it… but like i said, i thought they combined two categories in equation. if not, i’m in trouble.

What did you guys get for change in PE?

Corrupted Wrote: ------------------------------------------------------- > What did you guys get for change in PE? something like 2%??

They asked for the component sources, and that’s what I put down… I did not try to CALCULATE anything on this. was this wrong??

i did this too, couldn’t have been that easy, i think i blew this one

screwed this up also