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If I recall, the values for EP were based on inflation adjusted numbers (real numbers) from the first table. The nominal values applied only to the WACC table, which is why the statement was in the table’s caption.Gebura wrote:
There is note in the text that says “All values are nominal except for real WACC”. The second question is calculate the economic profit and the provided solution uses real WACC. If all other figures are nominal why don’t we use nominal WACC?
I actually just realized quant is 5-10% (I though it was 5-15%), so I’m pretty disappointed. I’m hoping for a 10% allocation on SaturdayGebura wrote:
For me it’s a permenent problem these days. I’ve just done one topic assessment from your favorite topic and I struggled 2 min why my calculation of F-stat doesn’t correspond to the provided answers. Then I realized the question asks for Exhibit 2 and I’m looking in Exhibit 1. I even haven’t noticed that there is Exhibit 2…Most probably the exam will contain such tricks so I promise myself to spend 1-2 min to look for hidden information (this of course does not apply for my last example, ANOVA table can hardly be defined as “hidden”).
Unfortunately, I believe we have conflicting interests…lammy wrote:
Tickersu, we want Quant to be 5% of the exam.
Tickersu, we don’t have conflicting interests. You can pass without quant being heavily weighted on the exam. I need the stars to be aligned properly. You’ll just enjoy the exam more if there’s a lot of quant in it. You don’t want to have fun at my expense do you?tickersu wrote:
Unfortunately, I believe we have conflicting interests…lammy wrote:
Tickersu, we want Quant to be 5% of the exam.
lammy wrote:
Tickersu, we don’t have conflicting interests. You can pass without quant being heavily weighted on the exam. Thanks, and I hope so. We will find out in 2 months.tickersu wrote:
Unfortunately, I believe we have conflicting interests…lammy wrote:
Tickersu, we want Quant to be 5% of the exam.
I need the stars to be aligned properly. You’ll just enjoy the exam more if there’s a lot of quant in it. Can’t deny that.
You don’t want to have fun at my expense do you? Well when you put it like that, of course not. I just see more quant questions as 6 less questions that could lead to back to back swap vignettes or something really obscure.
Right, but it wasn’t put in a very obvious place that the cash flow information was in real terms. I noticed it, since I like details, but I thought it could have been presented in a footnote to the cash flow table (similar to the footnote in the discount rate table)…It was odd that they didn’t keep a similar format for presenting the additional details.Sebrina Spatz wrote:
The nominal values applied only to the WACC table, which is why the statement was in the table’s caption.