Sample Level I Questions These sample questions were developed to give candidates an indication of the question formats used on the actual examination. 1. Anthony Buchard, CFA, disclosed a complaint by a former client on his annual professional condu
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(TB 6.11) IPC paid a $1 per share dividend yesterday. You expect the dividend grow at a rate of 4% per year. If the discount rate is 12%, what is the current price? What is the expected stock price 3 years from now? Discount Rate Growth Rate Curre
Data Total Sales Purchases Loss Price Purchase Price Salary paid to himself Income Statement Sales COGS Gross Profit Operating Expenses Inventory Loss Depreciation EBIT Interest EBT Taxes (20%) Net Income Inventory Schedule Beginning + Purchases - CO
CFA Level 1 2007 - Formula Sheet
T CFt
QUANTITATIVE METHODS THE TIME VALUE OF MONEY
Interest rate = Risk free rate + Inflation risk premium + Default risk premium FVt = Future Value (period t) = $X x (1+r)t PV0 = Present Value (time 0) = FVt / (1+r)
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If APR on a 3-month deposit is 20%, what is EAR? APR # Periods EAR 20.0% 4 21.6%
5.00%
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If EAR on a 3-month deposit is 25%, what is APR? EAR # Periods Period Rate APR 25.0% 4 5.74% 22.9%
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You purchased 100 ABC Inc shares on May. 1, 2007, at