标题: QBank #104163 - Alt Investments [打印本页] 作者: cyber21 时间: 2013-4-1 13:15 标题: QBank #104163 - Alt Investments
Can someone please explain the answer to this to me? I can’t calculate the number of shares for Melton and Apple for part 5 of the question, the math doesn’t seem to add up. Thanks!作者: BC_MBA_student 时间: 2013-4-1 13:15
this is a pretty awesome vignette. tough.
do you understand step 3, which is the fractional ownership for Melton? That’s key.
I’m gonna assume you understand step 3, the fractional ownership.
Richmond Group invests 7m for Melton, which is 26.08%
To compute the # of shares Richmond gets for Melton, this is what you do.
1) there is a formula that seems awkward at first, but if you do it a couple times, you get used to it.
2) This is the formula: (# of shares held by current owners) x (Richmond’s fractional ownership / 1 - Richmond’s fractional ownership)
3) let’s do it: 1.5m x (.2608/ 1 - .2608) = 1.5m x .3528 = 529,000 shares作者: laurab 时间: 2013-4-1 13:16
y = x(F/(1-F)
y = amount of shares
x = amount of shares mgt wants to have
F = fractional ownership, F = I/Post作者: SeanWest 时间: 2013-4-1 13:16
CFA.Rhythm, that makes more sense, the answer key tho shows:
“Stake for Melton = 1.5 million / [26.08% / (1 ? 26.08%)] = 529,258 shares”
it must be a mistake, since the math doesn’t add up. But, Northeastern’s formula is consistent with the Qbank answer….作者: mar350 时间: 2013-4-1 13:16
1.5 * not 1.5 /作者: KungFuPanda 时间: 2013-4-1 13:16
Does Schweser post errata for Qbank? I can’t seem to find it.作者: rohitdoshi 时间: 2013-4-1 13:16
they dont you can report it though, does it say “closest” bc 529 v. 529.238 is relatively close?作者: yospaghetti 时间: 2013-4-1 13:16
give or take a couple shares, the most important is knowing the formula作者: tikfed 时间: 2013-4-1 13:16
the larger point is that Qbank has the math wrong, they are dividing instead of multiplying.作者: tikfed 时间: 2013-4-1 13:16
i didn’t see that, but I guess you’re right, if that’s what they are doing
