Issue between CFAI and Schweser material in chapter of LOS 29.A Capital Structure

CFA Level II
#1

LoS 29.a begins with “Explain the M-M propositions… “. After completing the material of Schweser and going through the EOC exercises of the CFAI textbook, I noticed that CFA has some questions where we are supposed to calculate the cost of equity or debt, based on the formulas included in LoS 29.a, while Schweser does not.

Since the LoS is about “explaining” and bearing in mind that Schweser material is supposed to help us to save time and avoid reading excess material, should I go through the effort of learning how to calculate costs based on the LoS formulas? In your opinion, the CFA textbook questions are for completeness of knowledge or do they give a sign that CFAI expects for candidates to be able to calculate costs, even though the LOS is about explaining?

Thank you

#2

CFAI EOC questions I think are exam proxy questions specially the item sets. In my opinion if something is tested in Practice question or EOC questions then the CFAI expects from us to be ready for those problems and they could be tested in the exam.

#3

Stick to LOS. If you know WACC formula, why can’t you solve this - 3 variables, 2 given - solve for the 3rd one.