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Type: Posts; User: ashish24

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1. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Two things: a) questions 36 is identical to...

Two things:

a) questions 36 is identical to question 35.
b) the answer to question 35 is b which is 104.98 and not 105.21.

by ashish24
Replies
96
Views
98,653

Thank you.
3. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Based on my calculations the answer is B. ...

Based on my calculations the answer is B.

Please note that I still have not got an explanation for Q 30 answer.
4. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Based on my calculation as follows, the answer is...

Based on my calculation as follows, the answer is B:

V0= 1/2[((101.07+8)+(101.98+8))/1.041] = \$ 105.21.
5. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: I was wondering about my question in the posting...

I was wondering about my question in the posting prior to the above post. I still did not understand why we multiplied 0.078 by 360/360, rather than multiplying it by 330/360.

This is regarding...
6. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: As part of my calculations I did 1+ 0.078*...

As part of my calculations I did 1+ 0.078* 330/360, as 0.078 is the 330 day rate. However you have multiplied 0.078 by 360/360, which I guess caused the difference in our answers.
7. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: I am not so sure about the choices for this Q 29....

I am not so sure about the choices for this Q 29. I am using my calculations and getting an answer of \$429371.97.

8. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: The answer to the Q 29. is B according to my...

The answer to the Q 29. is B according to my calculations.
9. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: The answer for Q 28 is B or the Pac man defense...

The answer for Q 28 is B or the Pac man defense strategy.
10. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: The answer is A as the HHI index as a result of...

The answer is A as the HHI index as a result of vizag and Salem merger goes above 0.18 to 0.19 which indicates high concentration in the industry.

Prior to the merger, the HHI index was moderate...
11. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Q 26. I believe the shareholders would be worse...

Q 26. I believe the shareholders would be worse off with a cash and stock deal. The gain to them will be reduced and therefore the answer is B.
12. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: I was wondering regarding the current vignette as...

I was wondering regarding the current vignette as to whether this a test of corporate finance and equity valuation or just one of them. Many of the methods used so far seem to be unfamiliar as part...
13. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: For Q 14, I am not sure, but I think the...

For Q 14,

I am not sure, but I think the answer is B. Please provide a explanation if the correct response is otherwise.
14. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: The answer according to my calculations is B or...

The answer according to my calculations is B or \$13.193.
15. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Hello all, For Q 21 I get an answer of...

Hello all,

For Q 21 I get an answer of \$574.90 million
This is how I get my answer:

V = 20/1.12 + 30/(1.12)^2 + {[749+35*(1.07)]/0.12-0.07}/(1.12)^3
= \$599.8 million.
16. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: The answer to Q. 20 according to me is A as...

The answer to Q. 20 according to me is A as capitalization of expenses leads to higher net income. C is not applicable therefore and B is wrong, in fact the book value decreases.
17. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: For Q 17, my answer is A \$1.89.

For Q 17, my answer is A \$1.89.
18. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Again we are messing with basic math. How does...

Again we are messing with basic math. How does 0.13-0.10 = 0.02 and not 0.03. With 0.03 in the numberator we end up getting 8.08% as the growth rate.

I would appreciate some clarification on two...
19. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Again for this question based on my calculations...

Again for this question based on my calculations I get an answer of 8.08% as the implied growth rate. None of the choices match my answer.
20. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: For question 14, the explanation say the...

For question 14, the explanation say the retention ratio is 60%.

However the vignette shows a payout ratio of 60% which would make retention ratio at 40%.

21. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Thank you for the explanation for Q12. However...

Thank you for the explanation for Q12. However for Q13 none of the answers that I get as value per share match any of the choices listed.

The answer I get is \$38.02.

22. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Q 13. Ans C. Residual income = net income -...

Q 13. Ans C.

Residual income = net income - cost of equity x equity value
= 4000000 - (0.10) * 25000000= 4000000- 2500000 = 1500000

On a per share basis =...
23. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: Thank you Ratan for providing the explanation. ...

Thank you Ratan for providing the explanation.

Regarding question 11, the answer is A.

F= MSR/MSE = 28.
24. ## Thread: Free CFA Level 2 practice question bank for June 2011 exam

by ashish24
Replies
96
Views
98,653

### Sticky: I got C as the answer in the following way: B...

I got C as the answer in the following way:

B = 14
Unexplained regression = 1000
Therefore D=1000/14= 71.42 or approx 71

by ashish24
Replies
96
Views
98,653