When valuing the property using ‘gross income multiplier’ method, the answer take the product of NOA and the multiplier calculated using market average data. Shouldn’t we first get Riviera’s gross operating income and then do the multiplication? In fact the two methods should give identical results! I spent 20 minutes on this and this one ruined the whole exam for me. I HATE STUPID SCHWESER EXAM WRITERS! (only stupid writer, not all.)
Agree, 2 mistakes there,the first is the one you mentioned, the second is question 34, instead of 60 mm the amount was 45 mm I spent 26 minutes in this vignete bc the errors
saw that in the errata AFTER it nearly killed me. Now I check errata first. Beware if you’re doing book7, this is an omission they’ve noted. You can imagine how frustrating it is to try to calc a NOPAT w/o tax rate, unable to match even the wrong answers… Exam 1, Question 85 Page: 132 - Omission The vignette for Questions 85 - 90 should indicate that GigaTech’s marginal tax rate is 40%. Posted: 2008-05-04
Yup and its not in the errata on their website either, f ing morons…
ok it is now, but was not there a few days ago…
Was anyone else confused by Q83 - I mean I was trying to work out if they had worded the question wrong or the answers wrong. In the end I went with A and got it right - but surely it’s just a b@lls up??