2011 CFA mock PM # 51

CFA Level II
#1
  1. 2010

notes payable 20. 15

long term debt. 157.5. 150

What is the net borrowing that we need for FCFE calcs? Please…

The answer suggests its 2.5 pls justify

#2

Change in LT Debt = 157.5 - 150 = 7.5

Change in Notes Payable = 20 - 15 = 5

Since Notes Payable are from the past --> It will be 7.5 - 5 = 2.5

LT Debt is what got issued this year. There is a Accumulated component from the past …

#3

It should be 7.5+5 = 12.5

The answer is wrong - unless there is another debt (e.g. ST debt) item that is missing and went down by 10.

#4

NM stupid post got repeated.