› CFA › CFA Level 2 › CFAI TEXTS, VOLUME 2, PAGE 414, QUESTIONS 16 AND 17

CFAI TEXTS, VOLUME 2, PAGE 414, QUESTIONS 16 AND 17

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    • Avatar of googs1484googs1484
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        • CFA Level 3
        13 Sep 2018 at 11:35 pm
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        I’m begging someone to validate for me that these questions and answers are WRONG that CFAI is giving. Selling receivables to a consolidated SPE would not affect leverage or liabilities to total capital. No way.

      • Avatar of googs1484googs1484
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          • CFA Level 3
          15 Sep 2018 at 1:32 am
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          I got an explanation for these so all set. Apparently we’re supposed to assume if receivables aren’t sold the firm would seek debt financing instead hence increased assets and liabilities. 

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