On book 4, p. 116, I think there is an error related to the calculation of synthetic equity. The last equation should be be dividend yield 2% rather than 3%. Am I correct on this? Thank you.
You’re right if you are figuring out how much units of stock or the initial value of the position but in this example schweser only did 1/2 of what is considered a full solution (i.e. they just equitized the bonds not the next steps of detailing the units and value of said units)… so they divide by 3% which is correct.
Is this another case of will schweser be adequate… Anyone else getting TB fear?
this isn’t a case of schweser will be adequate - they do these quesitons the same as the CFAI, just in this example they only took it 1/2 way to demonstrate a point not to cut corners…