Yes, the LOS says “Calculate the impact of different types of taxes and tax regimes on future accumulations.” But are these formulas something that you all are going to memorize? There are a lot, and they are pretty gruesome when you consider that some are very similar except for moving around the exponents, parentheses, etc.
once you get the hang of it its pretty manageable. i would memorize.
niraj, how are you with the Tecg and FVIFt formulas? they are very unintuitive to me, i still cant understand what they are measuring? is the first measuring your taxes only on deferred gains and the second your future value based on deferred gains? Tecg = Tcg(1-Pi-Pd-Pcg)/(1-PiTi-PdTd-PcgTcg) FVIFt = [(1+Rart)^n x (1-Tecg)] + Tecg - (1-B)Tcg pg 323
Check out my post on that subject http://www.analystforum.com/phorums/read.php?12,929905,949152#msg-949152
Been several weeks since I looked at these, but if you break them down I recall most of them being fairly intuitive… going to check Mr. Duck’s post now.
There is a general Trend to all the formulas. Make a logic to the process and i think they would just come to you -Hamza-
the show NY Wrote: ------------------------------------------------------- > niraj, > > how are you with the Tecg and FVIFt formulas? > they are very unintuitive to me, i still cant > understand what they are measuring? is the first > measuring your taxes only on deferred gains and > the second your future value based on deferred > gains? > > Tecg = Tcg(1-Pi-Pd-Pcg)/(1-PiTi-PdTd-PcgTcg) > > FVIFt = [(1+Rart)^n x (1-Tecg)] + Tecg - (1-B)Tcg > > > pg 323 i didn’t focus much on learning whether deferred or cap gains-whatever was being taxed. i felt that tryin to do that confused me that much more. i just mugged up the basic formulas and then these two fell into place very easily (thankfully).
would you agree that the likelihood of an item set on this topic (along with PE) is very high, since it is new to the level II curriculum
yes, i’d agree. that said, EM was new last year but didn’t show up so its a crapshoot really.
I have heard from Schweser that if it is a brand new topic it is less likely to appear the first time out…then again CFAI states that any LOS is fair game.
what is EM
I would treat new sections just like any other - they could test it, they could not. I know Andy likes to say new sections don’t get tested, but I’m not willing to bet all of the time and money I’ve spent on what he thinks is or isn’t likely!
EM = Emerging Markets Aimeee - the schweser videos really marketed the high chance of new topics showing up. go figure.
emerging markets? what section is that in?
I guess that’s the equity reading from hell… 39 or 40 or so…
Valuation in emering markets… everyone was sure that would show up last year!