CFA L1- Equity Quiz 2 questions

vishnu.ftw
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Posts: 22
Joined: Wed Apr 03, 2013 5:01 pm

CFA L1- Equity Quiz 2 questions

Postby vishnu.ftw » Sat Apr 20, 2013 11:18 am

Question 10: Could someone explain why option a is correct and not option b?

Question 15: Could you explain step-by-step how to work this problem? Why is the answer the marginal net tax effect of additional debt?

Question 19: How does an increase in Payable days decrease cash conversion cycle? Shouldn't the correct answer be option c?

vishnu.ftw
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Posts: 22
Joined: Wed Apr 03, 2013 5:01 pm

CFA L1- Equity Quiz 2 questions

Postby vishnu.ftw » Sat Apr 20, 2013 11:21 am

Also, Question 8: According to the equity lecture, a stop loss sell order is when you put a limit to reverse the order if the price gets too HIGH. Now, this didn't make sense to me at the time, and the answer to this question is a stop loss sell order is when you reverse (ie buy the stock) if the price goes below the market price. could someone confirm this?

lokesh1
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Postby lokesh1 » Mon Apr 22, 2013 10:21 am

Hey Vishnu

I could answer your query only if you could paste the exact question here.


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