Question from last year...

Just for the people that took the exam last year… There was a question on last years Level II that I vaguely remember. You were comparing to companies and their yield on (I don’t exactly remember what, I think preferred Divs) and the answer was that you use the comparable yield and not your own yield? Does anyone remember this question? There was a big debate about it on the boards… I can’t find anything in the text that resembles this. *NOTE* I do not want to confuse anyone that is taking it for the first time so please ignore. They might have eliminated it.

anyone remember this?

Don’t recall this. What subject is this?

I think it had something to do with Pfd yield.

Sponge_Bob_CFA Wrote: ------------------------------------------------------- > I think it had something to do with Pfd yield. Yes. Do you remember what the question was or even the LOS?

Sorry, that is all I remember. You might try going back to the pages that have dates right after the LII last year. I haven’t seen anything this year where I was reminded of it. Oh wait, maybe it was premium on convertible pfd???

this was from you Bob, it was about ‘market conversion premium’ “I believe I had 60% as premium…you had to value first with comparable dividend yield I believe (haven’t checked yet).”

I was close… What were the rest of the specifics?,571217,page=1 this was a huge debate on the convertible pref

I don’t remember seeing it in this year’s material?

I was just going to ask where it is in the books on this stuff…

That’s why I’m asking. Maybe the CFA received so many complaints that they pulled it…