ANyone else who took the Mock2 find a potential error in the explanation? It was the one where you had to determine what the accounting income would have been in year one if the distribution prject was undertaken assuming that it was 40% financed with debt. None of the answers seemed to fit, so I guessed. THen the explanation assumed that HALF of the project was financed by debt, so the explanation didn’t match the question. Can I at least assume there will be no f’ing errors on the actual exam for F’s sake?! Or is it my error? Does anyone remember the question?
Yeah, that’s what i doubted. Is the printable answer at its website correct? Answer:interest 1/2 x30,000x8.5%=1,275 If I remember correctly, in the question, it says 40% of the spending would be financed by debt. Should the interest be: 40%x30,000x8.5%
That’s right. What printable asnwer at the website? On the pdf answer sheet, it’s wrong. Is there another place to see the answer? So relieved someone else saw that. I thought I was going crazy.
Agreed!
Also, did you notice that ine the score breakdown there is “quantative methods” section. there was no quant on the test. This is probably suppose to say economics. Can you believe all these errors? This is ridiculous considering how much these exams cost.
I saw this, too. Was goiing nuts b/c my answer wasn’t a choice but I thought I had it right. Still haven’t reviewed the pdf, but man that sucks if there are errors in these.
I consider corp finance a strong suit, so when my answer wasn’t a choice I was bugging out. I wasted far too much time on that question. Absolutely ridiculous on the part of CFAI.