archived_user
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- Jun 18, 2026
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Hi,
In reading 16, the EOC Question 7 asks the following “In 2009, Zimt’s earnings before taxes includes a contribution (in € millions) from its investment in Oxbow Limited closest to:”
We are using the HFT Method.
I thought I was supposed to calculate it like this:
+ Share of Net Income (6M) - Share of Dividend(4M) - Share of reduction in FV(3M) = +1 Contribution to Earnings from Investment in Oxbow.
However the answer is:
+ Dividend received from Oxbow: 2M
- Reduction in Oxbow Fair Value: -3M
Contribution to earnings: -1M.
My question is, why is the Net Income of Oxbow ignored and what am I missing here in my way of thinking?
Thanks for the help.
In reading 16, the EOC Question 7 asks the following “In 2009, Zimt’s earnings before taxes includes a contribution (in € millions) from its investment in Oxbow Limited closest to:”
We are using the HFT Method.
I thought I was supposed to calculate it like this:
+ Share of Net Income (6M) - Share of Dividend(4M) - Share of reduction in FV(3M) = +1 Contribution to Earnings from Investment in Oxbow.
However the answer is:
+ Dividend received from Oxbow: 2M
- Reduction in Oxbow Fair Value: -3M
Contribution to earnings: -1M.
My question is, why is the Net Income of Oxbow ignored and what am I missing here in my way of thinking?
Thanks for the help.