[jeff]

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

Free CPA Exam Survival Guide: https://www.another71.com/cpa-exam-survival-guide/

[lauren725]

The after tax cost of debt is calculated by 40%, not 60% since tax savings is an indirect cash flow.

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[lauren725]

Maybe the question assumes the debt is after tax? I just worked it and see what you are saying though.

AUD - 73,91
FAR - 79 - Thank you God!
BEC - 73,79!!!!
REG - 92 whatttt??!

I used Becker review + flashcards, Ninja Audio, Ninja MCQ supplement on BEC and REG.

Done! Praise God!

[Anonymous]

I had the same issue with this question….just try and remember to solve it as if the cost of debt is net of tax if you don't see the answer…chances are, the question was thrown out for lack of better details.

[jstay]

75% on B3-capital management and working capital

lets get some questions flowing, ill start

A company issued 9% preferred stock. P/S sold for $40 with a par value of $20. Costs of issuing is $5 a share. What is the cost of P/S?

Answer: 5.1%

$20 Par x .09 = 1.80 —dividend per share

40 -5 = 35 –P/S minus flotation cost

1.80/35 = 5.1%

to figure dividend we use par x the percentage

initially i used the full 40 and was wrong

[samfutureCPAboy]

@ lauren725 & Casagarber – Thank you for the help 🙂 I did see some posts saying there's an issue with the question.

CA Candidate

F- 68, 78 (Thank you, Lord)
A- 75 (Thank you, Lord God)
R- 72, 75 (Thank you, Lord God Almighty)
B- 74, 77 (Thank you, Lord God Almighty Forever!) DONE!!

Education - Completed
Ethics Exam - 100%
Experience - In Progress

“Faith is believing that God is going to take you places before you even get there.” - Matthew Barnett

[Anonymous]

I'm going through the risk management and capital budgeting section right now. I scored a 93% yesterday on capital management which surprised me, but I got lucky on a few guesses. On this section though? Not so lucky, struggling to get a 70 but some of the stuff overlaps with FAR.

[jeff]

(updated – new question posted)

[jstay]

sweet jeff, got it right!

[Anonymous]

You purchased a preferred stock that pays a $3 annual dividend. When you bought the stock the required rate of return was 10%. You sold the stock when the required rate of return was 8%.

A You made a profit on the transaction.

B You lost money on the transaction.

C You broke even.

D You are not sure what happened to you.

[Anonymous]

B?

[jstay]

you are correct, I HATE IT!!!!

in the process of rewriting the whole chapter

[Anonymous]

the optimal level of inventory would be affected by all of the following, EXCEPT the:

a. cost of placing an order for merchandise

b. cost per unit of inventory

c. lead time to receive merchandise ordered.

d. current level of inventory

correct answer: d

why? shouldn't current levels of inventory affect the level of inventory. I'm so confused

[Anonymous]

This budgeting section sucks big time.

[jstay]

budgets blow

i did that section this past weekend and feel like i cant remember anything from it

is that with sales volume variance, price variances etc?

[Anonymous]

Yeah, struggling big time on it and then all the formulas to remember for the performance measures section DAMN! I'm writing every single formula on a blank printer paper so I don't forget any during test time.

[Author]

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