emering mkts - Equity terms, asking, nothing, question, remember

chunty

I've read this chapter prob 3 or 4 times now and other then the black box approach and forecasting this and that in nominal and real terms nothing else is sinking.

Anyone have any take aways from this chapter?

I only remember them asking one very broad question last yr, but I could be wrong.

bdavi77962

Know how to calc WACC and CAPM with emerging mkt factors, know which ratios will be over/under stated on either terms, know taxes are nominal basis etc...Know their scenario DCF model and that if you use 1 case either adjust the CF or discount rate NOT both etc.


biggest thing I see here is calc WACC and CAPM

benbenxiong

I'm gonna go over this again 2nite. Thanks buddy. I thought u passed last yr?

onelife1

Took L1 in 08, had to finish college to take L2 so this is first try (and hopefully the only 1)

ryanlb

I feel ya man. I took it with u in December then tried lvl 2 last June. It was impossible lol

SFoyil

how did you do on the mocks this time around? by any chance do you have the mock exam they provided last year in pdf?

ningning1984

Nah I wish. What's your email man? I wanna ask ya something, off the boards.

madaochenggong

i agree, this is one of my worst chapters - i'm planning on not getting bogged down - read the sauce, know some of the basics, and hope if it does show up i can pull 50% on the vignette and move on...

Kapie

Just read it over real quick with Stalla notes. Doesn't really seem too bad. Know how to calc risk free rate (US rate + (inflation differientials), know how to calc debt (same equation as risk free rate + credit risk premium). Use a world mkt portolfio beta when calc wacc. Use the tax rate that coincides with int expense.

Either scenario analysis or adjust wacc. Suggested method is to use scenario analysis cause you have more control over the variables. Don't use both methods at the same time. Debt is measured at current rate, depreciation and fixed assets are measured at historical costs. Use ebitda - int exp (coverage ratios) instead of debt ratios (d/a).

Hmm did I leave anything out?