Correction
Exam 3pm, p190, Q118 should read "Are Thaddeus Baldwin's statements on the soft dollar standards correct? The correct answer is "B", only one statement is correct.
Posted: 2009-05-14

Correction
3am q32, p257 Given M, and our knowledge that the net operating income is typically 80% of the gross income, the market value for Riviera Terrace may be estimated as: MV= Gross Income × M= $4,200,000/0.8 × 7.4074 = $38,888,889 Note that because we are using the same methodology to back out the gross rents for the comparable properties, and then applying these values to estimate the gross income multiplier, the resulting value estimates are the same under either method. Normally, the gross income would be known and the gross income multiplier approach would result in a different estimated value than the direct income capitalization approach.
Posted: 2009-05-19

Correction

3pm q69 p171
The balance sheet needs to be adjusted before calculating book value per share.

Common Shares


2,100,000

Retained Earnings


2,081,000

LIFO Adjustment


112,000

Pension Adjustment


(300,000) = (PBO – FMV – Existing Liability)

Total Book Value


$3,993,000

$3,993,000 / 130,000 shares = $30.72
Ending book value = 30.72 + 6.15 - 0.31 = 36.56. Equity charge = 30.72 x 0.128 = 3.93. Residual income = 6.15 - 3.93 = 2.22. Interesting, the equity impairment has increased the residual income.
Posted: 2009-03-26

Correction
p196. Q15. The answer explanation is incorrect. Under the all-current method, COGS and depreciation are translated at the average rate.
Posted: 2009-04-30

Practice Exams, Volume 2
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Correction
File Included: L2_Exam3_Q26 (2).doc
Exam 3am Problem 26 Analysis of Multinational Operations is discussed in more detail in the problem than appears in our Notes or in the CFA Institute source curriculum. Distinguishing between holding effect and flow effect is not necessary for this problem. Although the answer is correct, candidates may find the extra details confusing. Please see the attached file for a more basic explanation of the solution.
Posted: 2008-12-10

Correction
3AM q56. The $2295 interest differential that will be received at the end of the LIBOR loan should be discounted back 150 days. This would result in a value of $2239. Answer B is still the "closest" to correct.
Posted: 2009-04-21

[此贴子已经被作者于2009-6-3 14:03:26编辑过]