标题: Reading 45, Question 4 and Question 7, CFA Practice Problem [打印本页] 作者: robjames1984 时间: 2013-4-3 21:01 标题: Reading 45, Question 4 and Question 7, CFA Practice Problem
Question 4 I keep getting an error when I type in the TVM numbers, trying to solve for I/Y (the six month yield). What am I doing wrong? I type it in exactly as the answer states…..
Question 7 It says that the target debttoequity ratio is 0.8033. How do they get the respective weights of .445 for Debt and .555 for Equity?? This probably so simple but please help…..作者: lxwarr30 时间: 2013-4-3 21:03
Q4.
FV = 1000 (outflow)
PV = 900
N =10 (semi annual)
PMT = 40 ( 0.08/4 x 1000)
CPT 1/y …Ans. 5.31 This is the semi annual yield.
After tax yield = ( 5.31 x 2 ) x (1 0.38) = 6.59 %
Q.7
D/E = 0.8033
D/(D+E) = 0.8033/(1+0.8033)
E/(D+E) = 1/(0.8033 + 1)作者: spartan1 时间: 2013-4-3 21:05
correction
Q4.
PMT = 40 if you take FV = 1000
alt you can take PV = 900 and FV = 1000 and PMT = 40作者: lxwarr30 时间: 2013-4-3 21:08
why does EQ get 1 here? How do you decide that? I was originally thinking D = .8033 and E =(1.8033)?
Q.7
D/E = 0.8033
D/(D+E) = 0.8033/(1+0.8033)
E/(D+E) = 1/(0.8033 + 1)作者: suyash1989 时间: 2013-4-3 21:10
This is the D/E ratio that is given as 0.8033
So given D/E = 0.8033 = 0.8033/1
So 1+D/E = 1.8033
(D+E)/E = 1.8033
or E/(E+D) = 1/1.8033 = .5545
So D/(E+D) = 1 .5545 = .4455
CP作者: joemoran 时间: 2013-4-3 21:12
when you do E = 1 0.8033
that means debt is 0.8033 or 80.33% of the total capital while the debtto equity ratio is the ratio of total debt to total equity ::: D/E !
