So with all the attention that Mr. Scholes, Mr. Black, FCRP, FCFF, MBS, etc have been getting - it’s kinda unfair that we leave these (below) poors chaps out completely - I mean they might be small, they might be insignificant, but they sure as hell might help us get over that bridge we’re all dying to cross over come Saturday… so let’s give them a little more (mc) lovin shall we?? 1. Claims Valuation Approach 2. MM’s Propositions - The Perfect World!! Ha! 3. Types of Mergers and the Life Cycles - Hortizontal, Vertical, Conglomerate - which stage they are used in 4. Measuring Economic Activity - GDP @ Factor vs Market etc 5. Variable Interest Entities 6. International Investing Alternatives - Closed-end, Open-end, ETFs, ADRs 7. Business Cycles and the appropriate investments - Recession, Early Upswing, etc… 8. Inflation effects on Valuation - Remember that Inflation passthrough formula?? 9. WACC Calculation for Emerging Markets - always mess up on this!! 10. Growth Duration Model - yes…there are atleast 20% candidates out there who’d probably still not seen then anywhere!! ok …apologize for my weak attempt at humour… anyway…these are just a few topics I know I have kinda sidelined…read over…but not spent enough time with…and more than likely half will show up on the exam…that alone could get me my 10%… anyone have any more to add…??
claims valuation? you just ruined my day.
damn! how the heck did you read that so fast?
yeah growth duration model has been MIA
i stopped at #1 and got sick.
Is claims valuation just figuring out which model to use (DDM, FCFE, FCFF)? If not this sucks.
ok there so much my brain can take god dman it
Yeah way to start it off with the one blank card i drew.
I read today closed end international funds disadvantage is the premium to NAV . …
Good lord . . . Claims valuation is separating the cash flows to the bondholders and discounting them at the cost of debt the the equity cash flows discounted at the cost of equity, sum up the PVs.
need a barf bag?
Statutory - ceases to exist Subsidiary - brand name still there under parent company Level 1 ADRs trade on OTC Level 2 ADRs trade on exchanges Level 3 ADRs meet the same requirements as Level 2, but can issues shares.
What about Credit Ratings? Factors considered for the different types of bonds, tax backed debt, municipal bonds, sovereign debt? I always have trouble keeping those straight?
4c’s - Capacity, Character, Collateral, Covenants
These arn’t too bad. WACC in emerging markets I definitely forgot though…or atleast need to brush up on. Thanks for the post
^^I meant the big table the CFAI text has for Sovereign Debt: Political Risk factors, Economic Growth factors with sub-headings under each. Also factors considered for muni bonds (socio eco factors, budgetary discipline etc). Lots of factors which i tend to get confused on.
Emerging Markets: Calculate taxes in nominal terms then adjust for inflation, same with NWC.
I was just tossing out the 4c’s for the hell of it.
Dickey-Fuller-Engle-Granger test and regression model misspecifications (biased vs inconsistent coefficients)
Fair value hedge Offset exposure to changes in fair value of an asset or liability. Gains and losses are recognized in the income statement. Cash flow hedge Offset exposure to variable cash flows from anticipated transactions. Gains and losses are reported in equity. The gains and losses are eventually recognized in the income statement once the anticipated transaction affects earnings. Net investment hedge of a foreign subsidiary Offset exposure from an existing investment in a foreign subsidiary. Gains and losses are recognized in equity along with translation gains and losses. In all three hedge types, any portion of the hedge that is not effective is recognized in the income statement.