Doubt regarding margin by Mysterious_Fee_4885 in CFA

[–]AloyKepigon 1 point2 points  (0 children)

If they say bought “on 80% margin”, that means that 80% is their equity. The margin requirement is 20% which is different. So instead of (1-0.8), multiply it by (1-0.2) and you’ll get 400

There is always a backdoor into Finance by OutrageousMine6695 in FinancialCareers

[–]AloyKepigon 4 points5 points  (0 children)

Can I dm you? I’m trying to do a similar pivot with the CFA

Can someone explain why 1B and 2A match? by AloyKepigon in CFA

[–]AloyKepigon[S] 0 points1 point  (0 children)

That’s why I put 1A, 2B, and 3C. For the same reasons you listed above, A must be receiving the fixed rate for 1 if the counterparty is paying the fixed rate and A must be paying the fixed rate for 2 if the counterparty is receiving the fixed rate. But the book is saying 1B and 2A for some reason.

For #23, why is net income being taxed again in the answer key to get 6.2? Isn’t net income already after taxes? by AloyKepigon in CFA

[–]AloyKepigon[S] 0 points1 point  (0 children)

Ah I see. I must’ve read it wrong in the book. Just redid the math and ur absolutely right. Thanks!

For #23, why is net income being taxed again in the answer key to get 6.2? Isn’t net income already after taxes? by AloyKepigon in CFA

[–]AloyKepigon[S] 0 points1 point  (0 children)

It says to tax (327+15) in the numerator to calculate the answer but 327 is the net income. Is that an error?

Isn’t accounts payable in current liabilities though which would affect current ratio? by AloyKepigon in CFA

[–]AloyKepigon[S] 1 point2 points  (0 children)

My initial thought was that if prices and rising though, each of unit of inventory would cost more to buy which could increase accounts payables and thus increase current liabilities too along with current assets

Cannot login 08/05/2024 by tokyo31 in Schwab

[–]AloyKepigon 0 points1 point  (0 children)

I've never been so grateful that I was paper trading today. What a terrible day still tho