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11 Comments

  1. From the lesson Barf Ka Bosa

    Wed, 07 Jan 2009 08:27:55 -0000

    Menkapil, it’s a good post. However I recommend you to place your post in relevant community.

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  2. From the trivia question American Sprocket, Inc., a manufacturer of quality bicycles, is reviewing several new projects. Assuming that managerial time constraints limit the number of new projects to only one, which of the following would shareholders most likely prefer? Project A: Update the company’s web site, including making it interactive. There will be increased costs, which are largely one-time expenses, plus subsequent maintenance costs. Revenues are expected to exceed expenses. Expected impacts: Change in earnings: +3% Change in earnings variance: +1% Change in share price: +5% Project B: Update the color scheme of the firm’s most popular product. In addition to design expenses and new raw materials (paint & decals), American Sprocket expects to run an advertising campaign hyping the ¡°new¡± bikes. The new version will be sold for $15 more per unit. Expected impacts: Change in earnings: +10% Change in earnings variance: +15% Change in share price: +11% Project C: Replace the heavier alloys used with lighter compounds; increasing the cost of the typical bicycle by $90. Although the new alloy is experimental and has unproven results in durability, American Sprocket would have the edge over its competition by having the lightest bikes in the industry. Expected impacts: Change in earnings: +45% Change in earnings variance: +35% Change in share price +19%

    Mon, 15 Dec 2008 07:52:34 -0000

    Yes, even I don’t like to attempt long questions. But bear with it.

  3. From the trivia question Using an optimal capital structure will:

    Fri, 12 Dec 2008 08:13:08 -0000

    Amit, you are right EPS certainly influence Capital structure. This particular question is based on interpretation. And response may vary depending on interpretations. My source of this information is from schweser Test Bank.

  4. From the lesson Analytical Reasoning

    Fri, 12 Dec 2008 08:04:31 -0000

    Thanks for your response. Even I love to add more content on Analytical reasoning. Give me a week, I am struck up in something urgent. Hope thats fine with you

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  5. From the trivia question Using an optimal capital structure will:

    Thu, 04 Dec 2008 08:02:23 -0000

    Amit: Earnings per share are a result of all of the firm’s activities and may or may not be materially influenced by the firm’s capital structure.

  6. From the discussion Can we have freedom to give CFA exam whenever we want?

    Mon, 24 Nov 2008 08:31:46 -0000

    hmm, thats a good thought but I think there might be some logistic problems for CFA. As students across the globe appear for this exam.

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  7. From the lesson Count of Students appeared in CFA June 2008 exams

    Mon, 24 Nov 2008 08:29:43 -0000

    There is no restriction on the number of attempts, but the exam is conducted once in a year

    8.5% of cumulative probability is quite low. Those who does pass all 3 levels in their first attempts are real genius(with luck on their side)

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  8. From the lesson e-Learning Players

    Fri, 19 Sep 2008 10:02:44 -0000

    It is really impressive information; can I request you to add analysis of other players like LatitudeU, Studeous, OpenLearn, ELGG, L3RN, and Ask ePals.

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  9. From the discussion In terms of Returns vesus Risks, which mode of investment is better?

    Thu, 18 Sep 2008 09:01:17 -0000

    I can bet that even Investment genius(like Warren Buffett or John templeton) may not favor either Risk or Return blindly w/o considering n number of factors. These factors can be geography specific, industry-specific, economic-specific or/and individual-specific.

    Given the list of investment options available, i like to rank them in order of risk and return

    Safe to Risky

    Govt Secs – FD – Bonds (with high rating) – Gold – Property – MF – Secondary Stocks – Primary Stocks

    Return (from Highest to Lowest)

    Stocks – Property/MF – Gold – FD/Bonds – Govt Securities

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  10. From the discussion CFA Exams - Options/distractors are reduced from 4 to 3

    Thu, 18 Sep 2008 08:52:06 -0000

    Yes, you are right rkMittal. The standard practice is to have 4 or more options. But CFA has announced that they plan to have 3 options from next year. It may encourage guessing practice among the learners. Therefore even i don’t completely agree with their decision.

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  11. From the trivia question Using an optimal capital structure will:

    Thu, 18 Sep 2008 08:00:26 -0000

    Yes, you are partially right. Profit maximization is one of the main objective of company management. But profit maximization doesn’t always guarantee that the benefits are passed to owners (shareholders). Profit amount can be used by management in low return projects or paid higher dividends to preferential shareholders.

    The end objective of optimal capital structure is to maximize the owner’s interest by way of increasing stock’ price.