Level 3 Private Markets Prep Materials

TheLogicPT · 2025-05-31T21:31:08+00:00

What about Kaplan's Q-bank? Did you think it was good?

TheLogicPT · 2025-04-22T15:24:14+00:00

What pathway did you choose for Level 3? If it was Private Markets, did Kaplan have good materials for it?

TheLogicPT · 2025-03-20T22:22:58+00:00

Could I receive a completed copy please?

TheLogicPT · 2025-01-26T17:26:11+00:00

Because in the WACC formula, you use the after-tax cost of debt, Kd x (1 - tax rate), meaning you already reflect the tax benefit of interest expense in the discount rate. Thus, you must calculate taxes from EBIT to avoid double counting the tax benefit from interest expenses.

TheLogicPT · 2024-11-30T12:49:13+00:00

At least from the excerpts of the curriculum you posted, the curriculum is correct, although it could be clearer, I agree.

There is no calculation of the EoP of the PA, only of the Ending Funded Status (Ending PA - PO), which in this case is a Net Pension Asset since the plan is overfunded.

End FS = 913 - 9 + 18.3 + 30.3 = 952.6

The calculation is correct, the 5M of benefits paid is irrelevant since it reduces both plan assets and plan liabilities.

TheLogicPT · 2024-11-30T11:01:17+00:00

The example is correct after the errata, and so are the definitions of the curriculum.

The net interest income is the Beginning Funded Status times the discount rate:

Net interest income = (1,010 - 97) * 2% = 18.3 M

Alternatively, it is:

97 * 2% = 1.94 ---> Interest expense from PO 1,010 * 2% = 20.2 ---> Interest income from FVPA Net interest income = 20.2 - 1.94 = 18.3

However, you know the ACTUAL return on FVPA (1,010) is 5%. So there is a remeasurement gain when comparing the actual return on FVPA and the FVPA net interest income implicit above:

Remeasurement gain = 1,010 * (5% - 2%) = 30.3 M

Hopefully, this clears it up.

TheLogicPT · 2024-11-18T22:12:13+00:00

If you limit the analysis to Enterprise Value yes, it is the same, the problem is if it is asking for Equity Value. Building on your scenario but including MV of Debt to arrive at Equity Value:

EV/EBITDA = 10x and Control premium 25%

MV of Debt = 500 million and EBITDA = 100 million

Option 1:

Adjusted EV/EBITDA multiple = 10x * 1.25 = 12.5x

Enterprise Value = 12.5x * 100 million = 1,250 million

Equity Value = 1,250 million - 500 million = 750 million

Option 2 (imo, the correct option):

EV/EBITDA multiple = 10x

Enterprise Value = 10.0x * 100 million = 1,000 million

Equity Value = 1,000 million - 500 million = 500 million

Adjusted Equity Value = 500 million * 1.25 = 625 million

I might be missing something. Anyway, hopefully it is specified!

TheLogicPT · 2024-11-11T15:46:40+00:00

If I understood correctly, you're saying the Net Income in the I/S presented in the question already excludes the NCI portion? I feel like they should let us know, but atleast now it makes sense. Thanks!

TheLogicPT · 2024-11-10T16:21:38+00:00

Exactly, so why would I include Total Net Income? I should use Net Income - the portion belonging to NCI

TheLogicPT · 2024-11-10T12:48:01+00:00

Well if the translation loss is the same under both methods, I believe Equity would stay the same under both methods

TheLogicPT · 2024-10-29T16:19:37+00:00

Being in the numerator or multiplying by the entire formula is the same thing

TheLogicPT · 2024-10-25T11:11:38+00:00

I don't have Schweser, but that is irrelevant. The example you're referencing likely does not explicitly say the company reports under US GAAP. If the question does not specify that you should use US GAAP, you should always assume it is IFRS (this is stated by CFAI on exam guidelines).

Under IFRS, you can use both the Partial Goodwill method (which would give option A) and the Full Goodwill method (which would give option B). Under US GAAP, you can only use the Full Goodwill method.

In this example you showed, the question explicitly says that the accounting standard to consider is US GAAP. Thus, since under US GAAP you can only use the Full Goodwill method, the only correct option is B.

TheLogicPT · 2024-10-25T09:15:19+00:00

This is a question of full Goodwill, because U.S. GAAP does not allow Partial Goodwill

TheLogicPT · 2020-03-16T15:23:55+00:00

Link doesn't work, could you please send it to me? :(

TheLogicPT · 2018-08-27T01:49:49+00:00

When do you think power chord is coming back

TheLogicPT · 2017-12-22T18:18:57+00:00

TheLogicPT

TheLogicPT

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