RI clarification and possible Exam topic mergers

sup all hope ur all surviving, im not anyways i need clarification on some ish. in RI valuation, is the BV the equity or the total capital? also, given that CF M&A is new to level 2, im willing to bet that it will be merged with FSA M&A. who agrees im also seeing ICAPM merged with Econ. 1luv

Having a hard time understanding your jive talk lingo, but here goes: 1) Equity 2) I agree 3) I agree

ok heres more clairificatino on RI ish RI = BV + (ROE-r)*BV/(r-g) is the BV the book value of the equity or total capital like is BV = total equity / shares outstanding or is BV = total debt + equity / shares outstanding 1luv

BV = Total equity / shares outstanding

Just to clarify: NOT TOTAL CAPITAL. Just equity. Because you are subtracitng the charge for equity, i.e. the cost of equity. EVA is for invested capital, and you use the WACC for that.

The ICAPM reading used to be in Econ…this year they moved it into Port. Mgmt.

yeah…and I don’t see how that made a tad bit of difference… what’s the point?!

The only thing I can gather is they wanted to steer it more towards the investor returns in a global market, than the economic models that govern it. I was so excited to throw out my old ICAPM/FCRP notecards when I was finished this year’s SS4…only to be devastated when it popped back up in SS18!