I need some help understanding SS11 reading # 43. LOS 43.b saying “Calculate nominal and real-term financial projections in order to prepare a discounted cash flow valuation of an emerging market.” I’m using Schweser study notes. Schweser provides a long complicated example which I don’t think we would have to do the whole thing in the example. Could anyone let me know what exactly I have to understand in the LOS? Also, in the schweser study notes, question (concept checker)#1 of SS11 reading#43, I don’t understand how to get the answer. Could someone explain it? Thank you very much
Have you read SS12 yet? After 12, this will make a lot more sense and the example will not appear as complicated. To me, it seems that the inflation issue discussed here would just be tacked on as an extra question in a vignette that covers FCF forecasting in general.
thank you for your help.