fabian

[fabian]

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There’s this: https://www.audible.co.uk/pd/CFA-AudioLearn-Complete-Audio-Review-for-Chartered-Financial-Analyst-CFA-Level-One-Exam-Audiobook/B07J5975JH

Doesn’t look great though.

[fabian]

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@mattjuniper saving on opportunity cost at the risk of catastrophic failure (i.e. virtual death)…

[fabian]

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I guess Eco because i failed in it >_>

I liked economics in Level 1…

[fabian]

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That’s a really good point @imdnextbuffet – at L2 you’re ‘hooked’.

[fabian]

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I did one vignette the other day, and including tables the text was 2.5 pages long. Does the exam contain vignettes as extensive as that?

[fabian]

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Was looking through all of this – thanks for posting the question @vincentt.

I would say that although purchases occur throughout the year, inventory is stable and they use LIFO accounting, so inventory is still the same inventory they bought on Jan 1st.

My take is that inventory is historical because it was bought all at once at the 1st of Jan, then with LIFO accounting the inventory was kept stable, meaning that all new inventory that was purchase would have been shifted to COGS (therefore using average rate), and the inventory at the end of the period would still be the inventory bought at the 1st of Jan. So historical rate should apply here.

Inventory depends on date of purchase
COGS depends on date of sale

I’m literally writing this from work (shh…) from no reference so I could be wildly wrong here. Just my 2 cents 😀

[fabian]

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ec_test said:

Hi there, 

I can’t speak from experience because I haven’t taken the Level 3 exam yet (I just registered), but I personally like paper better. I ended up getting the CFAI paper books and I find them practical for situations where I can’t bring a laptop with me. I think it is a matter of your preferred studying style. 

Second this. The material is doubly dry if you’re trying to read it from a computer screen.

[fabian]

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Also, usually there will be a reference to what LOS the question is drawing from. What does it say for your q?

[fabian]

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my score as given my the 300 hours tool was 72% for level 1 – just a point of reference 🙂

[fabian]

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I study at home. no problems there.

[fabian]

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i just need more sleep. been studying evenings as well. need a weekend off soon.

[fabian]

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I actually couldn’t really tell – I’ve had plenty of time for Ethics to drop completely out of my head between levels.

[fabian]

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Solid weekends with no weekday studies (yet)…

[fabian]

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FRA was the toughest for me for Level 1. It’s kind of the same for level 2 as well…

[fabian]

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Which is perfect cause that’s where you are @mattjuniper!

[fabian]

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Or taking all three at once. I bet there are some crazies in this world who would actually manage that.

[fabian]

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Or taking all three at once. I bet there are some crazies in this world who would actually manage that.

Say whhuuuuuut. All 3. Ermahgerd

8-}

[fabian]

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Start with Schweser, blend in CFAI mock somewhere in the middle. You can (and probably should) revisit the CFAI mock from time to time to remind yourself how they ask questions…

[fabian]

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Isn’t FCFF actual cash flow? So any depreciation adjustments wouldn’t actually directly impact FCFF, but the tax savings it generates (assuming an increase in £200k in depreciation saves you 200*20%=40k) will be added to the FCFF.

In terms of explaining it via the formula, your NCC would increase by £200k, but NI would decrease by £200k as well, plus an increase of 40k in tax benefits. The better formula to use would be:

EBIT * (1-tax) + Depreciation & Amortization – WCInv – FCInv

So adding your 200k increase to depreciation, you get

(EBIT – 200k) * (1 – 20%) + (D&A + 200k) – WCInv – FCInv
= EBIT – 160k + (D&A + 200k) – WCInv – FCInv
= EBIT + D&A – WCInv – FCInv + 40k

[fabian]

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@zee @vincentt whoops, you’re right. my bad 🙂

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