Anyone here sitting for FV this fall?
I just found out that I passed DP… thankfully I had already started studying for FV last month.
I am now through all the material (read: TIA videos) and have started practice problems and flash cards.
I have no accounting background whatsoever (can’t remember anything from my VEE finance class from years ago), and therefore feel a bit overwhelmed with the accounting related topics. I started watching Khan Academy videos on income statements and balance sheets… Yikes
If anyone has any helpful thoughts or resources, I would be very appreciative.
There’s implicit vs explicit debt recognition in EV cost of capital formulas, is that what you were referring to?
Implicit is when the rdr already includes debt, see the wacc with debt in it. Explicit is when debt is not included in the rdr and you have to account for cost of debt separately.
Nice! I was borderline in July myself. I definitely think I did better this sitting than July one. I feel the opposite, I feel more confident about FVA. FVC had too little math for my liking.
Yeah, I took a gamble on FV-C and focused like 85% of my time this past weekend on memorizing the lists and assumed the math would be 1)simple 2)minimal and it definitely worked out.
My experience is OPEB so I felt confident i could generally do most of the OPEB math easily enough and doing the practice exams&questions plus numerical videos on TIA let me feel confident that the math Q’s on FV-C would be straight forward enough that I could get good partial credit on everything as long as I knew the lists.
the word question- I wrote something, I’m not confident in its veracity.
For the math: I did know the alternative method to EV, and I’m pretty sure I mostly kept it together for this problem. I may have made minor errors like projecting an extra year. I possibly discounted the final release of capital an extra year due to how I set it up
Nothing confident haha :). As confident as I felt for OPEB questions, the SOA threw me a curveball, I 100% did not expect a question like that. I just info dumped so many different concepts related to the NPPBC and ended up with a $700K ish number. I broke it down to explain how the IC would be affected by the SC & the increase in DR and the SC would be changed by the different service to FE. I could stuck on two items:
1)how to reflect the change in annuity factor (if that mattered)
2)how the service to FE could be different but the APBO was unchanged.
I don’t remember the word question.
For the math, I set it up the way TIA did but messed up the PV Profit stream calc. I blanked on how to carve out the 4% pre tax interest rate out of the 16% profit and I missed something on the PVCoC. I did the EV math correctly based on my incorrect inputs thought.
