I mean, wow. Anyone else get rocked by the CFA 2011 AM mock? Just got a 57% on it. (kills self)
2011 AM mock was hard, I took it 3 weeks ago and got a 60%, lots of calculations up front!
I just took it yesterday, got 69% on it, but got 82% on the PM…Found it to be the toughest one I’ve done so far.
I got a 50% on the AM… Went 0/6 on derivatives and 2/6 on quant. My two weakest sections…
I deleted question #56 and #60 from my score as well because I don’t think those are in the 2012 LOS’s. Didn’t recognize them. So got 66.6% if I didn’t delete them.
agree … I don’t recall ever seeing the terms “intrinsic P/E” or any “inflation adjusted intrinsic P/E”
anyone else confirm ?
CFAI 2011 Mock: AM, 57%, PM: 62%; Together: 59%
Not happy with this, my lowest score in CFAI mocks. Thought doing well, while doing AM, so surprised. Need to work hard.
I think from AM: #57 and #60 are not in the 2012 LOS.
KeithJeep 5, Inflation adjusted P/E shows up in a blue box question on Pg 395 in equity. This is showing the effects of inflation on P/E’s. You would be expected to know this.
I would have probably gotten a better score had I not even studied the L2 material…
Thanks swt326
Anyone else having trouble understanding the answers on #39 AM and #51 PM ?
#39:
the answer states: “the capitalization of interest costs increased EBIT by $30mil”
I’m a little confused because IF we don’t capitalize interests, then they will be recorded as interest expense… But EBIT is before interest anyway so it will not be affected regardless.
#51:
In calculating Net Working Capital, the answer uses Current Assets minus Current Liabilities. I don’t think this is correct because this includes “change in Cash”.
and Net Borrowing should be +12.5 instead of +2.5 because note payables and long term debt increase which represent source of Cash.
Please help …
#39 - I agree and thought that capitalizing interest would reduce EBIT as some portion would be amortized, where as if it wasn’t capitized the full amount of interest would be deducted _ AFTER _ EBIT.
#51 - I am pretty sure theres an EOC question in this years CFA books that I got wrong for including the cash as it did in this exam Q. I thought we didn’t include cash.
I am just ignoring these Q’s…Maybe they were fixed in the errata? I don’t have a copy. The answers don’t really make sense to me.
awesome, i’m not going crazy afterall. i had the answers as you guys for the same reason. guess i’ll ignore the questions too.
this was actually my best scoring mock so far, not that i scored very high. i’m having a very tough time incorporating what i’ve learned into the mocks. somehow knowledge just seems to dissipate once i open the mock, despite having gone through many concepts at least 2-3x
awesome, i’m not going crazy afterall. i had the answers as you guys for the same reason. guess i’ll ignore the questions too.
this was actually my best scoring mock so far, not that i scored very high. i’m having a very tough time incorporating what i’ve learned into the mocks. somehow knowledge just seems to dissipate once i open the mock, despite having gone through many concepts at least 2-3x
awesome, i’m not going crazy afterall. i had the answers as you guys for the same reason. guess i’ll ignore the questions too.
this was actually my best scoring mock so far, not that i scored very high. i’m having a very tough time incorporating what i’ve learned into the mocks. somehow knowledge just seems to dissipate once i open the mock, despite having gone through many concepts at least 2-3x
awesome, i’m not going crazy afterall. i had the answers as you guys for the same reason. guess i’ll ignore the questions too.
this was actually my best scoring mock so far, not that i scored very high. i’m having a very tough time incorporating what i’ve learned into the mocks. somehow knowledge just seems to dissipate once i open the mock, despite having gone through many concepts at least 2-3x
I agree on #51 that we shouldn’t include cash. . . it most likely got taken into account in the Errata for that year. It specifically states in the curriculum that we shouldn’t include cash for Working capital calculations in FCFF.
It bugs me when the mocks have errors like including cash into that WC calculation.
Like how they forget sometimes to take the average of equity in calculating ROE. Argh!
Just as a general rule, for the calculation of ROE only, the default is to use BEGINNING of period equity values unless asked otherwise.