▲ 27 r/CFA
Passed level2 any questions ok just for fun
Not good with ethics tho
u/ZucchiniPersonal7473 — 2 days ago
▲ 2 r/CFA
CFA L2 CBT — Is the vignette a pop-up or split screen?
Hi, I'm preparing for CFA L2 and just tried the official CBT tutorial on Prometric. It seems like the vignette (Case Scenario) opens as a pop-up window over the question screen, meaning you can't see both at the same time.
Is this how it works in the actual exam too? Or is there a split-screen view where you can see the vignette and question simultaneously?
Any tips on navigating this would be appreciated. Thanks!
u/ZucchiniPersonal7473 — 2 months ago
▲ 1 r/CFA
If a company issues debt, interest expense increases, which reduces CFO. Since FCFF = CFO + Int(1 - t) - FCInv, the Int(1-t) add-back doesn't fully offset the reduction in CFO (due to the tax shield).
So technically, wouldn't issuing debt slightly reduce FCFF through the tax effect?
The curriculum says FCFF is unaffected by capital structure changes, but this seems inconsistent. Am I missing something?
Thanks!
u/ZucchiniPersonal7473 — 2 months ago
