Shortcut for AM mock 2012 Q 40

CFA Level II
#1

I got this right but maybe was luck. I did not bother with PV calcs. They give you the post-capitalized lease long term debt/equity ratio of 23%. Equity in 2009 was 9654 * 23% = 2220. Since there was 1614of LT debt, leases added 606 (2220 - 1614). The op lease expense was 113. So the capitalized factor is 606 / 113 = 5.37.

Take that factor times the 2010 operating lease payment of 126 and you get 676. Add that to LT debt of 1347 and you get 2023. Divide by 20,097 of assets and you get 10.07% which is correct answer A (10.1%)

#2

Lol I guess that’s the way we all do it be cause we don’t have any other information for lease in 2009 apart from adjusted ratio, so you cannot compute NPV