[jeff]

Post by Another71.

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

Suppose the equilibrium wage for low skilled workers in Kansas is $5 an hour. If the government increases the minimum wage to $6 an hour, what would be the effect on the market for low skilled labor?

a. The supply of labor would increase.

b. An excess supply of labor would result.

c. An excess demand for labor would result.

d. The demand for labor would decrease.

[Anonymous]

Answer B

[Anonymous]

Also I want to point out why it is Answer B.

Answer A and D both look correct on the surface. However, increasing Minimum Wage is creating a Price Floor above equilibrium. This causes a shift UP the supply curve line and not a shift OF the supply curve line. Essentially supply and demand remain the same. Remember that the line represents the supply or demand of a given product at each price point. So you're just changing the price point and not the actual supply or demand.

That's why B is the “betterest” answer.

[Anonymous]

B is correct.

[Anonymous]

So im freaking out slightly here….

I just took the aicpa practice test online for bec which contains 5 questions to practice from. i used becker to study and literally 3 out of the 5 questions are not even covered in the becker material! wth! my exam is on the 5th am i wasting my time here???

[mtwst113]

I passed with becker without looking at AICPA practice questions, no worries

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

I have said this and said this, but strategic management and financial management are about to drive me up the wall! Who is scoring high in those areas? I may need some tips! I have worked and worked these questions and it is just not clicking! I scheduled my re-take on Jan 5th! The first time I took the BEC exam I was weak in those same areas and made a 70! It doesn't matter how many I practice or read the stupid book, I am still weak in those areas!

[Anonymous]

financial management is kicking my butt

[Tarheelgirl]

@DreamChaser2014 – Those were the two sections besides the writing portion that I scored Comparable in, everything else I was weaker. Have you wrote down the formulas on flashcards and memorized them? That is what helped the formulas stick for me.

FAR - 46, 79 (7/8/14)
AUD - 56, 59, 2/23/15 3rd times a charm!
BEC - 69, 74 Really??
REG - April, I hope. Fingers crossed!

[JS867_5309]

Need some help with WACC when considering tax savings. There's a NINJA question asking to calculate the WACC, and the relevant debt structure is 30% with a 10% interest, subject to 30% marginal tax.

In the answer, NINJA says: “The marginal tax rate is considered in determining the cost of capital for each component that has a tax effect (such as the debt interest). Since the interest is deductible, the cost of debt is 10% less 30% tax savings, or 7%”

How on earth did they calculate that 7%???

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Anonymous]

@Tarheelgirl, I am writing all of the formulas down and re-writing them now. I feel that most of those type questions in MCQ format are really tricky, by giving confusing and hard to understand wording. If partial credit was given for the MCQ I would pass every time for these sections! I start on the right path by setting up the question and then I always make an error by either using too many numbers that they give or something like that….. and some of the practice MCQ it seems like they just pull numbers out of thin air… I am just ready to get this exam over and done with!

[Tarheelgirl]

@dreamchaser – I agree with you. You just have to know where the numbers go and ignore the filler information. Some of word problems are tricky but don't overanalyze it. I way overanalyze questions and make them harder than what they really are, which is when I get one wrong. I made flashcards and memorized as many formulas as I could for the exam.

I am beyond ready for this process to be OVER!!!

Also post some of the word problems you are having difficulty with and we can try to help.

FAR - 46, 79 (7/8/14)
AUD - 56, 59, 2/23/15 3rd times a charm!
BEC - 69, 74 Really??
REG - April, I hope. Fingers crossed!

[Anonymous]

DQZ Telecom is considering a project for the coming year which will cost $50 million. DQZ plans to use the following combination of debt and equity to finance the investment:

•Issue $15 million of 20-year bonds at a price of 101, with a coupon rate of 8%, and flotation costs of 2% of par.

•Use $35 million of funds generated from earnings.

The equity market is expected to earn 12%. U.S. Treasury bonds are currently yielding 5%. The beta coefficient for DQZ is estimated to be .60. DQZ is subject to an effective corporate income tax rate of 40%.

The before-tax cost of DQZ's planned debt financing, net of flotation costs, in the first year is:

A. 11.80%.

B. 8.08%.

C. 7.92%.

D. 8.00%.

[Anonymous]

This is the type of questions that I absolutely hate right now!

[JS867_5309]

@Dreamchaser – I think it's “B”

Cost of Debt = Next Payment/Net Cost of Issuance

= (100 x .08)/[101 – (100 x .02)]

= 8/(101 – 2)

= 8/99

= 0.0808 x 100 = 8.08%

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Author]

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