标题: Error in Q20 from CFAI sample exam? [打印本页] 作者: kasinkei 时间: 2013-4-21 12:01 标题: Error in Q20 from CFAI sample exam?
Q20 in the sample exam (relating to FDF - private company valuation) by CFAI does not take EBITDA net of taxes to calculate FCFF. Is that an error or am I missing something?作者: mkytz15 时间: 2013-4-21 12:06
hey, can someone explain how you arrived at 572,500 in the first place?
so you start off with EBITDA: (2,500,000 * 1.05) * 30% = 787,500. then aren’t you supposed to take net of taxes, i.e. multiply by (1 - t)? answer key jumps straight to adding back (Dep * t) = 78,750, then deducts FCInv (275,000) and WCInv (18,750) to arrive at 572,500, when it is supposed to be 336,250.
i can live with the calculation error, cuz that’s easy enough to figure out, but leaving out a KEY computational step? did i get this right, or am i missing something?作者: former 时间: 2013-4-21 12:10
I believe that should be errata
EBITDA should be multiplied by (1-T) to get the FCFF
Anyone supports our arguements?
