What’ll it be? Also, for repeaters, how is the exam segmented with quantitative vs qualitative problems?
I got chicken parm. The exam is mostly qualitative. Even the sections were you expect lots of math i.e. fixed income and derviatives. If there is any math its big like Teyner Black Model 2 years ago or simple plug and play.
FI, Deriv’s and a banana cognac?
Do you have a gauge of how qualitiative to quanitative? 80/20? 60/40? After f’ing up so many practice problems last night, I began thinking I don’t have a chance. I get the concept, but then I’ll forget to multiply d(1+g) in the DDM or something!
I have read from people on the board…that it is 2/3 qualitative and 1/3 quantitative.
Ethics - All Qualitative Quant - 1/2, 1/2 - the quaunt stuff is plug and play Econ - 1/2, 1/2, lots of currency stuff and stupid BOP last year Equity - 2/3 easy plug and play, 1/3 qual FSA - 1/2, 1/2 FI - 1/2, 1/2 Derv - 2/3 quant, 1/3 qual Alter - 1/2, 1/2 PM - 1/2, 1/2 - lots of overlap w/econ
this is more like breakfast…i’ll take fajitas with a dose of FSA / Equity / Corp Fin
Well, guess it’s good to get the bad news early on regarding how screwed I am. Back to work, and I’ll be staying in again tonight with my BAII plus in hand. Question 1 - 89487 Jean Baptiste Prudhomme and Sons, Inc. is a publicly-traded housing and construction company that has been operated by five generations of the Prudhomme family. Xavier Prudhomme, the current CEO, believes that the firm’s future success depends on finding a way to mitigate the inherent cyclicality of the construction industry. He and the COO, his cousin, Michel Sanscartier, have decided to invest in a firm that operates in a counter-cyclical industry. Prudhomme is in a strong financial position to make an investment in another firm. The company has 1 million shares outstanding. When the books closed for the year on December 31, 2003, the stock closed at $72 per share. The firm Prudhomme Inc. chose to invest in was outplacement counselors Quality Connections, Inc. The firms completed the transaction on December 31, when both companies closed their 2003 books. Quality is a much smaller firm than Prudhomme, with total assets of $2 million when the transaction closed, compared to Prudhomme’s $30 million. However, Quality is more liquid than Prudhomme: half of Quality’s assets were current assets, compared to only one-third of Prudhomme’s. In addition, current liabilities at Quality accounted for only 10% of total liabilities plus owners’ equity as of the transaction date, with common stock equal to another 40%. (The remainder was retained earnings.) Prudhomme does have some financial advantages over Quality, however. Prudhomme’s long history means that it has much higher retained earnings than Quality: Retained earnings at Prudhomme accounted for two-thirds of total liabilities plus owners’ equity when the transaction closed. (The remainder was equally divided between current liabilities and common stock.) Prudhomme also does a much better job than Quality of turning assets: 2004 revenue at Prudhomme was twice the level of assets the firm had on its December 31, 2003 balance sheet, while Quality’s revenue was only 1.5 times assets. Despite the lower turnover, however, Quality is far more profitable. Net income at Quality in 2004 reached 20% of revenue, while net income at Prudhomme came in at only 10% of revenue. (The remainder at both companies is Cost of Goods Sold (COGS).) The greater and more stable profitability at Quality is reflected in dividend payments: Quality paid out half its 2004 net income in dividends, while Prudhomme paid out only one-third. This high and stable dividend payment is a key reason that Xavier Prudhomme and Sanscartier were interested in investing in Quality. Sanscartier also considered Quality undervalued. He believed that Quality’s low investor profile – it trades on a small, regional exchange – prevented the firm’s dividend sustainability from being fully reflected in the company’s share price. Quality’s market capitalization at the close of 2003 trading was twice 2004 revenues (with 1 million shares outstanding), a figure Sanscartier believes is too low given the profitability of the firm and its excellent growth prospects. Although Xavier Prudhomme and Sanscartier were both generally very happy with their investment in Quality Connections, they shared one significant concern about the timing. At the time the transaction closed, the economy appeared to be slowing, and both men expected a cyclical decline in stock values. They were right: Prudhomme, Inc. stock dropped by $12 per share by year-end 2004. Quality Connections, Inc. stock dropped from $6 to $5 per share by December 31, 2004. Xavier Prudhomme and Sanscartier shared a common worry about the potential damage to Prudhomme Inc.’s 2004 income statement from a decline in Quality Connections’ stock price. Before the transaction settled, Xavier Prudhomme argued forcibly that Prudhomme should buy at least 20% of Quality so the market fluctuations in the stock wouldn’t affect Prudhomme’s reported income. He favored buying 25% of Quality’s shares outstanding on December 31, 2003 for a 10% discount from market, in cash. Sanscartier favored purchasing 100,000 of Quality’s shares outstanding on December 31, 2003 at the closing market price, also for cash. He suggested that if they made that investment, Prudhomme could avoid having fluctuations in Quality’s share price flow through Prudhomme’s income statement if Quality were no longer traded publicly and its fair value was not readily determined. Part 1) Regarding Xavier Prudhomme and Sanscartier’s remarks about the impact of the investment in Quality on Prudhomme Inc.’s income statement, which of the following is correct? A) Prudhomme’s statement is correct and Sanscartier’s statement is correct. B) Prudhomme’s statement is correct and Sanscartier’s statement is incorrect. C) Prudhomme’s statement is incorrect and Sanscartier’s statement is correct. Part 2) If Prudhomme Inc. follows Sanscartier’s recommendation and classifies its shares of Quality as be trading securities, what would be the effect of its ownership of Quality on Prudhomme’s income statement for fiscal year 2004? A) −$70,000. B) +$30,000. C) −$100,000. Part 3) If Prudhomme Inc. acts on Xavier Prudhomme’s recommended investment and accounts for this investment using the equity method, what is the value of Quality on the balance sheet of Prudhomme as of December 31, 2004? A) $1,500,000. B) $1,250,000. C) $1,425,000. Part 4) If Prudhomme Inc. acts on Xavier Prudhomme’s recommended investment and considers its shares of Quality to be trading securities, what is the effect of its ownership of Quality on Prudhomme’s income statement for FY2004? A) −$175,000. B) +$150,000. C) −$100,000. Part 5) If Prudhomme Inc. had purchased 750,000 shares of Quality for cash at a 10% discount from market value on December 31, 2003 and considered its shares of Quality to be available for sale, what would be the minority interest on the December 31, 2004 balance sheet? A) $525,000. B) $450,000. C) $250,000. Part 6) Assume Prudhomme’s only investment in Quality was the purchase of 500,000 shares of Quality for cash at market value on December 31, 2003 and Prudhomme considers its shares of Quality to be available for sale. On December 31, 2004, Quality declares bankruptcy and Quality’s stock price tumbles to $0.10 per share. What is the value of Quality on the balance sheet of Prudhomme as of December 31, 2004? A) $500,000. B) $50,000. C) $0. -------------------------------------------------------------------------------- Question 2 - 87593 George Edwards is a senior analyst with The Edge Group, an independent equity research firm specializing in micro cap companies that have recently had an initial public offering, or are likely to go public within the next three years. Over the current market cycle, small company stocks have been the leading performers in the equity market, and micro cap money managers have had huge cash inflows due to their funds’ strong performance. With an excess amount of cash and few good investment opportunities due to the high valuations in the marketplace, fund managers have turned to independent research firms like The Edge Group to help them discover new investment ideas. With a large number of mutual fund managers asking them for research reports, business at The Edge Group is booming. To help handle the large amount of business, Edwards has hired two new junior analysts, Paul Kelley and Rachael Schmidt. Both Kelley and Schmidt have degrees in finance, and came highly recommended to Edwards. In Kelley and Schmidt’s orientation meeting, Edwards told them that what has made The Edge Group successful in delivering quality research to its clients is its willingness to dig into company financial statements and not take the accounting numbers at face value. Every item in the financial statements should be scrutinized and adjusted if necessary. Edwards tells the new analysts that if there is one lesson they should learn, it is that “there is a difference between accounting reality and economic reality.” For their first assignment, Edwards has asked the new analysts to put together a draft of a research report on Landesign, an architecture firm specializing in landscape design for municipalities, residential developments, and wealthy individuals. The firm also sells various kinds of stone and plastic products which are used in landscaping applications. Edwards tells the new analysts that he will help put together the report, but he would like them to do a majority of the legwork. Since it was founded seven years ago, Landesign has grown at an annual rate exceeding 20%. Much of the growth comes from Landesign’s acquisitions of regional competitors. Edwards points out to the analysts that Landesign uses purchase method accounting. Kelley, looking to impress Edwards with his knowledge, tells him that when one company acquires another, assets of both companies are restated to fair market value, and that higher depreciation can lead to lower quality earnings. Not wanting to be outdone, Schmidt adds that liquidity measures such as the quick ratio and the cash ratio should improve as Landesign makes acquisitions. Kelley decides to review Landesign’s 2004 financial statements and make notes about significant accounting practices being used. His notes are shown in the exhibit below: Exhibit 1: Kelley’s Notes on Landesign’s Accounting Practices The firm uses First In, First Out (FIFO) accounting. As a side note, the current inflation rate has remained relatively constant at an annual rate of 3%. Equipment and office furniture are depreciated based on the 200% declining balance method. Fixed assets (equipment) are generally assigned short useful life estimates. The expected return on defined benefit pension plan assets is 2 to 3 percentage points below the long-term rate of return for similar assets. Landesign reports deferred taxes of $350,000 for 2004, compared with $300,000 and $280,000 in deferred taxes for 2003 and 2002, respectively. Schmidt notices that the footnotes to Landesign’s financial statements include a reference to an agreement to receive a minimum amount of stone used to construct landscape walls from a supplier. Under the terms of the agreement, Landesign will pay for the stone whether it is used in the current accounting period or not. The agreement allows Landesign to pay a price that is significantly less than the current market price for similar quality stone. A second footnote indicates that Landesign has an eight-year rental commitment for a greenhouse used to grow plants and store mulch that Landesign uses in the landscaping process. On the financial statements, $55,000 in rent expense for the greenhouse is listed on the income statement. The footnote also states that the $55,000 rental expense payment was agreed upon with Fred’s Nursery, the owner of the greenhouse, based upon an interest rate of 7%. A third footnote indicates that Landesign has sold its accounts receivable to Dais Enterprises for 95% of their original value of $130,000. The footnote indicates that Landesign retains the risk of noncollection of the receivables. The final footnote on the page indicates that Landesign has a revolving line of credit at which it can borrow funds in the future at an interest rate of 6%. After going through the information, Kelley and Schmidt discuss their findings and start to work on their report for Edwards. Part 1) Which of the following items noted in Kelley’s Notes on Landesign’s Accounting Practices would least likely be considered indicators of high earnings quality. Landesign’s use of: A) the 200% declining balance method of depreciation on its furniture and equipment. B) short useful life estimates for fixed assets. C) FIFO accounting in a mildly inflationary economy. Part 2) Which of the following adjustments should Kelley make to Landesign’s balance sheet to account for deferred taxes? Kelley should: A) add $350,000 to equity and subtract $350,000 from liabilities. B) add $56,000 to equity and subtract $56,000 from liabilities. C) add $56,000 to assets and subtract $56,000 from liabilities. Part 3) Which of the following adjustments should Schmidt make to Landesign’s financial statements for the agreement to purchase stone at a discount? A) A prepaid expense needs to be added to the asset side of the balance sheet. B) No changes are necessary since Landesign expenses the costs as part of normal operating expense. C) An estimate of the future liability should be recognized on the balance sheet. Part 4) Which of the following adjustments should Schmidt make to Landesign’s financial statements to account for the greenhouse that Landesign uses to grow plants and store mulch? A) Increase both liabilities and assets by $341,500. B) Increase liabilities and decrease equity by $440,000. C) Increase both liabilities and assets by $328,400. Part 5) Regarding the comments made about Landesign’s growth through acquisition strategy: A) Kelley’s comment was incorrect; Schmidt’s comment was correct. B) Kelley’s comment was correct; Schmidt’s comment was incorrect. C) Kelley’s comment was incorrect; Schmidt’s comment was incorrect. Part 6) Which of the following statements regarding the adjustments that Schmidt should make to Landesign’s financial statements for its sale of receivables is most accurate? A) $123,500 should be added to cash flow from financing, and $123,500 should be subtracted from cash flow from operations. B) Accounts receivable should be increased by $123,500, cash should be decreased by $123,500, and a loss of $6500 should be recognized on the income statement. C) Accounts receivable should be increased by $123,500, loans payable should be increased by $123,500, and a loss of 6,500 should be recognized on the income statement. -------------------------------------------------------------------------------- Question 3 - 88063 James Wallace, CFA, is a fixed income fund manager at a large investment firm. Each year, the firm recruits a group of new college graduates in the spring to enter in the firm’s management training program. The program is a rigorous six-month course that exposes every candidate to each of the different departments within the firm. After successfully completing the six-month training period, candidates then receive offers for employment in one of the departments within the investment firm. Recently, Wallace was selected by his boss to teach the fixed income portion of the firm's training program. He will be able to hold several two-hour sessions with the new hires over a two-week time period, during which he is expected to instruct the trainee’s on all aspects of fixed income analysis. These sessions serve as preparation for the trainees to be able to complete a month long rotation on the fixed income trading desk. His first few sessions will cover the core concepts of fixed income investing. Wallace believes that in order to fully grasp the more complicated concepts of fixed income analysis, the new hires must first begin by having a complete knowledge of the term structure and the volatility of interest rates. The new hires each have different educational backgrounds and varying amounts of work experience, so Wallace decides to begin with the most very basic concepts. He wants to start by teaching the various theories of the term structure of interest rates, and the implications of each theory for the shape of the Treasure yield curve. To evaluate the trainees' understanding of the subjects at hand, he creates a series of questions. The following interest rate scenario is used to derive examples on the different theories used to explain the shape of the term structure and for all computational problems in Wallace's lectures. Table 1 LIBOR Forward Rates and Implied Spot Rates Period LIBOR Forward Rates Implied Spot Rates 0 × 6 5.0000% 5.0000% 6 × 12 5.5000% 5.2498% 12 × 18 6.0000% 5.4996% 18 × 24 6.5000% 5.7492% 24 × 30 6.7500% 5.9490% 30 × 36 7.0000% 6.1238% James uses a rounded day count of 0.5 years for each semi-annual period. Part 1) Following Wallace's first lecture he asks the trainees which of the following explains an upward sloping yield curve according to the (unbiased) pure expectations theory of the term structure of interest rates? A) The market expects short-term rates to rise through the relevant future. B) There is greater demand for short-term securities than for long-term securities. C) There is a risk premium associated with more distant maturities. Part 2) Wallace now poses a similar question regarding the liquidity preference theory. Which of the following could explain an upward sloping yield curve according to the liquidity preference theory of the term structure of interest rates? A) There is greater demand for short-term securities than for long-term securities. B) The market expects short-term rates to rise through the relevant future. C) There is a risk premium associated with more distant maturities. Part 3) Wallace explains to the class that the swap fixed rate is one where the values of the floating-rate and the fixed-rate are the same at the inception of the swap. Using the information in Table 1, he asks the class to compute the swap fixed rate for a one-year plain vanilla interest rate swap with semiannual payments. Which of the following is the closest to the correct answer? A) 3.43%. B) 5.18%. C) 2.56%. Part 4) Wallace finally asks the class about the market segmentation theory of the term structure of interest rates. Specifically, Wallace asks which of the following could explain an upward sloping yield curve according to the market segmentation theory? A) There is greater demand for short-term securities than for long-term securities. B) There is greater demand for long-term securities than for short-term securities. C) There is a risk premium associated with more distant maturities. Part 5) Wallace presents the relationships between spot and forward rates according to the pure expectations theory. Which of the following is closest to the one-year implied forward rate one year from now? A) 6.25%. B) 6.58%. C) 5.75%. Part 6) Wallace completes his first lecture by tying the relationship between Treasury prices and the shape of the term structure. He is particularly interested in the implications of a steepening yield curve. Which of the following is most accurate for a steepening yield curve? A) The price of long-term Treasury securities increases relative to the price of short-term Treasury securities. B) The price of short-term Treasury securities increases. C) The price of short-term Treasury securities increases relative to the price of long-term Treasury securities. -------------------------------------------------------------------------------- Question 4 - 88424 Financial consultant George Price advises high-net-worth individuals on income investments. His firm, Price Enterprises, specializes in asset-backed securities (ABS). Price’s son-in-law, Roger Camby, also works for the firm. Price and Camby do not get along well, and they often engage in heated arguments in the office. On a certain morning, Price and Camby are arguing about which asset-backed securities (ABS) to purchase. Over the last two weeks, Price Enterprises signed up a half-dozen new clients and received several million in new funds from existing clients, and the company needs some new ideas for the portfolios. Camby is excided about a new ABS issued by a large retailer, Glendo’s. The ABS reflects a bundle of nonamortizing consumer credit accounts. As usual, Price prefers a different option, in this case a new collateralized mortgage obligation (CMO) issued by Trident Mortgage. Both securities offer similar total return potential and seem reasonably valued. Both Camby and Price believe the other analyst’s preferred securities are too risky. Unable to come to an agreement about which ABS to purchase, Camby and Price return to an old topic of discussion, the merits of collateralized debt obligations, (CDOs). Both analysts agree on the benefits of CDOs, which allow investors to profit off the spread between return on collateral and the cost of funding. But they disagree on the best strategy for constructing a CDO. Price prefers a simple cash CDO and criticizes Camby for his preference for more complicated synthetic securities. Camby argues that synthetic CDOs offer several advantages over cash CDOs: It is cheaper to purchase exposure to an asset through a swap than to purchase the asset directly. Only the senior section must be funded. It takes less time to assemble the portfolio. A bank can use a synthetic CDO to take debt off the balance sheet without the consent of borrowers. Bindle Bonds, a consultancy that sets up payment structures for entities that wish to issue asset-backed securities, has a referral relationship with Price Enterprises. Just before lunch, Bindle sales director Marty Malkin calls Price to offer him a piece of a new ABS comprised of thousands of home-improvement loans. Price likes the interest rates and the senior/subordinated structure that contains several junior tranches and senior tranches. But during his analysis of the default and prepayment projections, Price becomes concerned that Bindle is underestimating the risks. In response to Price’s concerns, Malkin explains that the ABS has a shifting-interest mechanism designed to limit risk for the senior tranches. After Price agrees to invest in the new Bindle ABS, he and Camby go to lunch. As they wait for their food, they discuss an investment a colleague pitched to Camby that morning. The ABS issuer used a conditional prepayment rate to estimate prepayment risks. According to the issuer’s model, repayment risks are modest, in part because refinancing is not a major concern with the underlying securities. The underlying securities are fixed-rate loans, and their default risk is fairly high. One benefit of the securities is the fact that principal payments are immediately passed on to investors. Immediately after Price and Camby return from lunch, Kay Peterson, a longtime client of Price Enterprises, comes into the office interested in diversifying her portfolio by purchasing European securities. Price is not a fan of the European market and tries to dissuade Peterson, who he knows prefers MBS. He makes the following arguments: The U.S. MBS market has delivered stronger growth than the European market. Mortgage loans need not be marked to market in the U.S. Standardized credit-scoring systems in the U.S. make it easier for lenders to assess risk. Camby, however, disagrees with his father-in-law. He suggests that Peterson invest in Europe, citing two advantages: Europeans are more likely to own their homes than Americans. In Europe, mortgage debt represents a smaller portion of gross domestic product (GDP) than it does in the U.S. Peterson is not sure which of the men is correct, and she asks for more details about the European market. Price explains that spotty data on mortgage loans hinders growth in the European market, adding that at times data presentation is inconsistent even in different parts of the same country. New valuation models are becoming more sophisticated, Camby added, postulating that as such models come into wider use in Europe, the region will see higher growth. Part 1) What affect will the shifting-interest mechanism connected to the ABS backed by home-improvement loans have on the senior tranches? Credit Risk? Payment Risk? A) Reduce Increase B) Increase Reduce C) Reduce Reduce Part 2) The ABS Price and Camby discussion at lunch is most likely backed by: A) Small Business Administration (SBA) loans. B) home-equity loans. C) auto loans. Part 3) With regard to statements made by Price and Camby to Peterson regarding the characteristics of the European and U.S. MBS market: A) only one is correct. B) both are correct. C) both are incorrect. Part 4) Which of Camby’s statements about the advantage of synthetic CDOs is least accurate? A) Only the senior section must be funded. B) A bank can use a synthetic CDO to take debt off the balance sheet without the consent of borrowers. C) It is cheaper to purchase exposure to an asset through a swap than to purchase the asset directly. Part 5) Camby’s preference for Glendo’s bonds suggests he is most likely concerned about: A) credit risk. B) prepayment risk. C) interest-rate risk. Part 6) To further advance his case in favor of the U.S. MBS market relative to the European market, Price’s most accurate argument is: A) the illiquidity of the market for securitized loans. B) the fact that most European mortgage debt is funded through retail deposits. C) how a shortage of mortgage-servicing firms is slowing growth. -------------------------------------------------------------------------------- Question 5 - 88875 Wanda Brock works as an investment strategist for Globos, an international investment bank. Brock has been tasked with designing a strategy for investing in derivatives in Mazakhastan, an Eastern European country with impressive economic growth. One of the first tasks Brock tackles involves hedging. Globos wants to hedge some of its investments in Mazakhastan against interest-rate and currency volatility. After a bit of research, Brock has gathered the following data: The U.S. risk-free rate is 5.5%, and most investors can borrow at 2% above that rate. The Federal Reserve Board is expected to raise the fed funds rate by 0.25% in one week. The current spot rate for the Mazakhastanian currency, the gluck, is 9.4073G/. Annualized 90-day LIBOR is 7.6%. Globos’ economists expect annualized 90-day LIBOR to rise to 7.9% over the next 60 days. In Mazakhastan, commodities can be bartered at no charge through an ancient and informal trading system, but futures trades cost 3% of the contract value. The Mazakhastan risk-free rate is 3.75%, and most investors can borrow at 1.5% above that rate. Using the above data, Brock develops some hedging strategies, and then delivers them to Globos’ futures desk. Brock then turns her attention to Mazakhastanian commodities. Globos has acquired the rights to large deposits of copper, silver, and molybdenum in Mazakhastan and suspects the futures markets may be mispriced. Brock has assembled the following data to aid her in making recommendations to Globos’ futures desk: Copper Spot price: $3.15/pound. 1-year futures price: $3.54/pound. Silver Spot price: $12.75/pound. 1-year futures price: $12.82/pound. Molybdenum Spot price: $34.45/pound. 1-year futures price: 35.23/pound. After making some calculations, Brock assesses the arbitrage opportunities in Mazakhastan and passes the information on to the futures desk. Shortly afterward, she is informed that Globos’ Mazakhastan subsidiary uses its silver holdings as collateral for business loans, which allows the unit to obtain a favorable interest rate. Jonah Mason, one of Globos’ traders, asks Brock for a few details about the Mazakhastan financial markets. Brock sends Mason a short e-mail containing the following observations: Mazakhastan’s investors don’t like relying on old valuation data because asset values have changed rapidly in the past, so they generally use a mark-to-market valuation system. Standard & Poor’s just raised Mazakhastan’s sovereign debt to investment grade. Interest rates tend to move in the same direction as asset values. New technological innovations and commercial expansion has substantially boosted the income of the average Mazakhastanian. Before Mason receives the e-mail, he turns his attention to a memo about a futures contract a subordinate is considering. Unfortunately, the memo arrives without the summary page to the notes. Mason must deduce the nature of the hedge based on its characteristics: The risk-free rate used in calculating the futures price, and that price adjusted to account for individual future dividends. Part 1) The value of a 75-day gluck future is closest to: A) 9.3750G/. B) 0.1081$/G. C) 9.4429G/$. Part 2) Based on the information he received from Brock, Mason can best conclude that: A) inflation in Mazakhastan is likely to rise. B) futures prices are higher than forward prices in Mazakhastan. C) prices of corporate bonds in Mazakhastan are likely to rise. Part 3) Based on the two characteristics of the futures contract in Mason’s memo, which of the following does the contract refer to? Treasury bond futures? Stock index futures? A) Yes Yes B) No Yes C) Yes No Part 4) Based on Brock’s information, how should traders best take advantage of arbitrage opportunities in Mazakhastan? A) Buy copper, do not trade silver, and sell molybdenum. B) Buy copper, sell silver, and sell molybdenum. C) Buy copper, sell silver, and do not trade molybdenum. Part 5) The value of a 150-day, $1,000,000 eurodollar add-on yield futures contract at expiration is closest to: A) $981,854. B) $981,171. C) $929,368. Part 6) Which of the following would be most likely to cause a contango situation with silver futures in Mazakhastan? A) A shortage of warehouse space that drives up rental rates. B) An increase in the availability of asset-backed loans. C) A huge silver discovery.
Im doing these and checking my answers on Schweser. You are going to crap your pants at the tricks