CFAI Update on Mock Exam PM (Question on Asset sales) -- FYI.

Dear Krishnan, Thank you for the feedback. We are updating the question to reflect correction for this error pointed out by some of our candidates. Thanks. Charles. -------------------------------------------------------------------------------- From: CFA Institute Customer Service Sent: Thursday, May 28, 2009 3:58 PM C.P. Krishnan, Thank you for contacting us. I have forwarded your inquiry to the appropriate department for review. A representative will follow up with you in the near future. Warm Regards, Michelle Bowyer Client Services Visit our website at Learn more about the CFA Program at Learn more about the CIPM Program at -------------------------------------------------------------------------------- To: CFA Institute Customer Service Cc: Subject: Mock exams LII - PM 2009. CFAI Mock Exam PM: There was a question on calculation of Free Cash flows – where it looks like the Cash inflow from Sale of an asset has not been included to reduce the FCInv. I have myself not taken the mock exam yet, so I cannot give you a question #, but friends who have taken the examination have given this feedback. Can you please investigate this discrepancy and help us identify what the correct treatment should be? Thanks and Regards, C.P.Krishnan

thx cpk.

What number question was this? AM or PM? I have the exam in my car, I’ll look in twenty when I go smoke a cigarette…

thanks CP, glad to know the right answer… Its bad when you have to teach the cfa how to do their work… It was #19 i beleive in PM skill

thx cpk

Thanks, I’ll take a look in a half hour; oh wait, I can still access it online, can’t I? Looking now…

I believe people said Q19…

thanks CPK. You may want to remove your name from the original post.

not able to do anything about it…

so it’s not California pizza kitchen after all? (cpk)

I think if i were to ever hear anyone with the initial’s cpk in real life, id double take. then probably bow… legend has it, CPK can read lady Gaga’s poker face…

Yup, your friends are right - the 1317 CAPEX number should’ve been netted against the 65 inflow from the asset sales, which means the correct answer should’ve been 469.5. Nice catch.

According to this, they have resolved the issues but I don’t see in errate. Are we really suppose to deduct it from gross PPE?

errrata has not yet been updated, it looks like. They sent me a mail that they would be doing something about it on Friday. Will check back with them tomorrow.

Thanks for doing this CPK - i just spent a whopping 15 minutes trying to get that one. Was convinced it should be netted! WTF!~

This GD problem threw me for a loop yesterday. I did it as all of you did and that wasn’t one of the answers. Sometimes I feel like it’s easier to look at the answers, look at the information given, then figure out how they came to that conclusion. This often helps me recognize the correct way to do things when looking at real numbers rather than reciting formulas in my head.