CFAI EOC Book 5 Chap 51 Q35 P220 total, because, question, conclusion

Andreas42

This is pretty frustrating..

The question asked what FFO/Total Debt and FOCF over total debt indicates, or "what conclusion should be drawn"

The eoc's on number 33 specifically asks what FFO/TD is, which is 12.02% dramatically down from the 2008 rate of 20.62.

I show FOCF/TD being 156 (given)/5517 = .0283, significantly down from 2008's 20.62%


the answer on P 227 says the financial flexibility improved because the FFO/TD and FOCF/TD have been increasing. Which they have not.

What am I missing?