Thursday, May 21, 2015

14 CFA Exam Level 1 Practice Questions Free Online

Exam preparation is considered as a key factor if you expect to win in the next CFA exam while spending the large amount money for long-term training courses is not appropriate to the busy people. 14 CFA Exam Level 1 Practice Questions Free Online can be secret source for your urgent demand. With many multiple choice questions and clear answers, you can be confident to master the extensive knowledge without anxiety. The test facilitates to check out the answers exactly and instantly, as a result, quickly remember the important concepts. Hope you quickly become a qualified CFA charter holder in the financial career with this CFA exam level 1 practice test 2015.
To view full questions and answers, please kindly visit our site:  http://cfaexampreparation.com/1305/14-cfa-exam-level-1-practice-questions-free-online/

Real Risk-Free Rate 2. Expected Inflation 3. Default-Risk Premium 4. Liquidity Premium 5. Maturity Premium
The notion that a given sum of money is more valuable the sooner it is received, due to its capacity to earn interest.
= annuity payment A/interest rate r
= (1 + Periodic interest rate)^m - 1(Where: m = number of compounding periods in one year, and periodic interest rate = (stated interest rate) / m)
= PV * (1 + r)^N
...quarterly, monthly, daily and even continuously.
This assumes no risk or uncertainty, simply reflecting differences in timing: the preference to spend now/pay back later versus lend now/collect later.
What is the chance that the borrower won't make payments on time, or will be unable to pay what is owed? This component will be high or low depending on the creditworthiness of the person or entity involved.
(or quoted rate) is the interest rate on an investment if an institution were to pay interest only once a year.
Posted by at 1 comment:
Labels: , , , , ,

51 CFA Exam Level 1 Sample Questions and Answers

Mastering all the following questions in 51 CFA Exam Level 1 Sample Questions and Answers means you are able to understand which focused knowledge needed for the upcoming exam. Those CFA mock exam questions picked up from the official mock exams, which are made available online and conveniently given exact answers after clicking the submit button at end of test. All the concepts are displayed under the exercises so that you can test over and over again to sharpen your practice. If you are seeking for invaluable advice on exam preparation and learning method, it is on top of whatever we want you to focus and pay high attention. Wish you higher performance in the exam!
To view full questions and answers, please kindly visit our site:  http://cfaexampreparation.com/1308/51-cfa-exam-level-1-sample-questions-and-answers/

Assets and liabilities increase by the bond proceeds +Interest expense is equal to the coupon payment+Proceeds are reported as cash inflow from financing activities and coupon payments are reported as cash outflows from operating activities+Repayment of principal is reported as cash outflow from financing activities
+Reported on the balance sheet as above face value+As the premium is amortized the book value of the bond will decrease until it equals par value at maturity
+Nature of liabilities+Maturity dates+Stated and effective interest rates+Call provisions and conversion privileges+Restrictions imposed by creditors+Assets pledged as security+The amount of debt maturing in each of the next 5 years
= Beginning Inventory + Purchases - Ending Inventory
A gain or loss is recognized by subtracting the redeem price from the book value of the bond liability at the redeem date;GAAP requires any remaining unamortized bond issuance costs must be written off and included in the gain or loss calculation;IFRS requires no write down since the legal and issuance costs have already been deducted
+Less costly financing+Reduced risk of obsolescence +Less restrictive provisions+Off-balance-sheet financing+Tax reporting advantages
Only done on assets with finite lives and is done the same as depreciation
Only contains common stock and nonconvertible stock
Created when taxes payable are greater than income tax expense;POST-EMPLOYMENT BENEFITS, WARRANTY EXPENSES AND TAX LOSS CARRYFORWARDS ARE MOST COMMON CAUSES;Must be reduced if it is unlikely to be used under GAAP
When the lease is treated like ownership for tax reporting to allow for the deduction of depreciation and interest expenses but the lease does not appear on the balance sheet
The value reported on the financial statements net of depreciation
Posted by at 1 comment:
Labels: , , , , ,

Monday, May 18, 2015

88 CFA Sample Exam Level 2 Questions on Corporate Finance

Not just focus on Ethics, practising 88 CFA Sample Exam Level 2 Questions on Corporate Finance including a plenty of CFA practice questions online with prompt answers is actually one of the first priorities for the CFA exam. Those multiple choice questions will help to taste how you feel in the exam-like environment and enable you to reduce anxiety when the exam is coming. Plus, the mastery of basic concepts and principles turns into ease, which perfecting so much for your investment career. Totally free, simple but not trivial! Why don’t you test now and speak aloud your results!
 To view full questions and answers, please kindly visit our site: http://cfaexampreparation.com/1290/88-cfa-sample-exam-level-2-questions-on-corporate-finance/

Acquirer in hostile takeover offers to buy shares directly from the target shareholders and each shareholder either accepts or rejects offer
Creating a new, independent company by giving its equity to current shareholders and parent company gets no cash in transaction
When managers are allowed to increase their allocated capital budget if they can justify to senior management that the additional funds will create shareholder value
After a hostile takeover offer, the target can defend itself by making a counteroffer to acquire the acquirer
-Divides operating cash flows based on claims of debt and equityholders that provide capital to the company, and the sum of the present values of the claims is the value of the company
System of principles, policies, procedures and clearly defined responsibilities and accountabilities used by stakeholders to overcome conflicts of interest
-Reflect the sale of the old asset in the calculation of the initial outlay-Calculate the incremental operating cash flows as the cash flows from the new asst minus the cash flow from the old asset
Acquirer moves down the supply chain towards the raw materials
-Dividends based on earnings less funds the firm retains to finance the equity portion of its capital budget-Model based on investment opportunity schedule, target capital structure, access to and cost of external capital
A winner of a bidding war likely paid too much for the company
Posted by at No comments:
Labels: , , , , ,

32 CFA Sample Exam Level 2 2015 Questions on Corporate Finance

Ferret out how quickly you can touch your dream of getting CFA charter holder designation by cracking 32 CFA Sample Exam Level 2 2015 Questions on Corporate Finance. It’s a good idea to tackle with all the useful free CFA practice questions even when you can grasp this subject relatively because the more you practise, the greater your ability are. That’s very important to decide upon whether passing or failing in the tough CFA exams. This online learning method helps every students or anyone who are stressed out to work can apply at any time. Additionally, each question is equipped with concise answers after practice completion offering full information to evaluate the results by yourself. Try out and don’t be afraid of facing the upcoming exam.
To view full questions and answers, please kindly visit our site: http://cfaexampreparation.com/1293/32-cfa-sample-exam-level-2-2015-questions-on-corporate-finance/

The security is riskier than average
The risk that a investor will face if only one asset was held
-Measures a stock's market risk, and shows a stock's volatility relative to the market.-Indicates how risky a stock is if the stock is held in a well diversified portfolio.
stated interest rate paid by the issuer
A bond that has interest payments based on an inflation index so as to protect the holder from inflation.
Bonds issued by the federal government. These bonds have no default risk; however these bonds' prices do decline when interest rates rise.
Bonds issued by a foreign government or a foreign corporation.
the part of the firms life cycle in which it grows faster than the economy as a whole
a document giving one person the authority to act for another, typically the power to vote
Value of a stock is the present value of the future dividends expected to be generated by the stock.Po= D1/(1+rs)^1 + D2/(1+r2)^2 + ...
The face amount of the bond, which is paid at maturity.
A long-term debt instrument in which a borrower agrees to make payments of principal and interest, on specific dates, to the holder.
Posted by at 1 comment:
Labels: , , , , ,

Friday, May 15, 2015

32 Free CFA Level 1 Mock Exam Questions

32 Free CFA Level 1 Mock Exam Questions include the basic concepts and examples will make you master huge knowledge quickly and effectively. Free CFA Level 1 mock exam online provides exam- focused testing questions to fresh candidates in order to assist in holding true to topics. It’s very easy to grasp all the basic knowledge before the exam thanks to the user-friendly and easy-to-access format. Hurry to test right now to get high scores!
To view full questions and answers, please kindly visit our site: http://cfaexampreparation.com/32-free-cfa-level-1-mock-exam-questions/

When one event's probability affects the other events*P(A|B) = The probability of A given B
The mean of n numbers expressed as the reciprocal of the arithmetic mean of the reciprocals of the numbers
Holding Period Return = (ending value/beginning value) - 1 OR= (ending value - beginning value + cash flow received)/(beginning value) - 1
The percentage of the observations that lie within k standard deviations of the mean is at least 1 - (1/k^2) when k > 1
= (risk free rate) + (default risk premium) + (liquidity premium) + (maturity risk premium)
Same as IRR
Events are independent if P(A|B) = P(A)
P(A and B) = P(A) * P(B) if independent events
Formula to find the number of possible ways of selecting r items from a set of n items;C = (n!) {(n - r)! * r!}
Dividing the covariance between returns of two assets by the individual standard deviations of returns of the two assets
= (1 + HPR) ^ (365/days until maturity) - 1
Used to update a given set of prior probabilities for a given event in response to new information;(Updated Probability) = {(Probability of new information of a given event) (Unconditional probability of new information)} * (Probability of event)
Comes from a personal judgement
Comes from a formal reasoning and inspection process; an objective probability
Posted by at No comments:
Labels: , , , , ,

80 Free CFA Level 1 Practice Exam Questions

80 Free CFA Level 1 Practice Exam Questions includes core concepts illustrated specifically and accessibly, that helps you so much to level up your ability. A variety of exam practice questions aid you in attaining the basic knowledge from the curriculum and polish up skills for the upcoming CFA level 1 exam. Finish all the following questions to know your weakness and strength and don’t forget to leave your ideas in the comment below!
To view full questions and answers, please kindly visit our site:  http://cfaexampreparation.com/80-free-cfa-level-1-practice-exam-questions/

When each existing share is divided into multiple shares;No change in owners wealth;Share price drops accordingly; Historically, stocks rise after a split because it is seen as a positive sign
Prevents shareholders from attending all the meetings and therefore exercising their full voting rights
Where the cost of one of the WACC components changes;= Amount of Capital at which the Component's Cost Changes/Weight of the Component in Capital Structure
The set of internal controls, processes and procedures by which firms are managed and defines the rights, roles and responsibilities of management
= (Percent Change in EBIT)/(Percent Change in Sales)= [Quantity of Units Sold (Price per Unit - Variable Cost)] /[Quantity of Units Sold (Price per Unit - Variable Cost) - Fixed Cost] = (Sales - Total Variable Costs) / (Sales - Total Variable Cost - Fixed Costs]
Accelerate cash outflows
*Involves large transactions*Same principles apply to most corporate decision making *Objective way to maximize shareholder value
Looking at a publicly traded security of a company involved directly in the business the project is engaged in;Company's beta is also a product of its capital structure and must be adjusted accordingly to fit the need of the project;Delever the comparable beta and relever for the project in question
~Beta uses historical data and sensitive to the length of time and frequency of data~Affected by which index is chosen to represent the market return~Betas are believed to revert to 1 after time and the estimate may need to be adjusted accordingly ~Betas of smaller firms may need to be adjusted upward to reflect risk inherent in small firms not captured by Beta calculation
= Fixed Operating Costs/(Price - Variable Cost per Unit)
Posted by at No comments:
Labels: , , , , ,

How to Pass CFA Level 1 2015 – Top Tips for Success

Thousands of candidates all around the world will be present for CFA level 1 exam in June, 2015. There are many candidates studying like crazy for the last few days. Also, a few people have completed their course as well as thorough revision. Here are last-minute tips in How to Pass CFA Level 1 2015 – Top Tips for Success which would help you raise the confidence in the last few days.
1. Make sure that you are holding all the testing regulations and policies in the palm of your hand and take note all the important things before taking the test.
2. Try to do as much practice problems as possible during the last few days. Practice will help you familiarize with the exam style and condition as well as be aware of type of problems that can be appeared in the exam day.
3. Set up an effective strategy about how you will approach the exam and how you will learn for the exam. A secret tip is that you should finish well both the morning and afternoon session if you want to pass the exam. Don’t spend all of your energy to the morning session and after that you can not perform all the sections in the afternoon session. Keep balance to get the highest effect!
4. Remember to invest your time to take mock tests in the last 2 weeks to perfect your exam preparation. You should take the test under the time limit properly in order to know the way to distribute your time into the sections reasonably, from that, having a smart strategy.
5. Do the revision in the last 2-3 days by reading LOS. By that way, you can understand and remember the concepts and formula related to the LOS.
6. Try your best to deal with all the problems and don’t overlook any question. If you can not answer any of them, make an educated guess by excluding the options.
7. One important thing which many candidates do not pay attention in the exam day is getting used to the calculator. As far as you know, you have to perform the calculations such as NPV, IRR, present value, future value and so on. Therefore, don’t forget prepare additional batteries for your calculator and check it carefully before the exam day. Also, it would be great if you can arrange the extra calculator for exam day.

To view full questions and answers, please kindly visit our site: http://cfaexampreparation.com/1267/how-to-pass-cfa-level-1-2015-top-tips-for-success/


Posted by at No comments:
Labels: , , , ,
Subscribe to: Posts (Atom)