Archives

All posts for the month April, 2014

Current Rate vs. Temporal: Why Two Methods?

Posted by Bill Campbell III, CFA on April 14, 2014
Posted in: Level II Financial Reporting and Analysis.

Truth be told, I have no idea what the exact reasons are that we use two strikingly different methods – the current rate method and the temporal method – for changing the values from those in one currency (the local currency) to those in another currency (the presentation currency).  However, I have developed (i.e., stumbled […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level II Membership, CFA® Level II Financial Reporting and Analysis (FRA) Membership

This will give you access to this and all other articles at that membership level.

Amortization Tables

Posted by Bill Campbell III, CFA on April 7, 2014
Posted in: Level I General, Level II General.

Although you are not allowed to use Excel (or any other spreadsheet program) on the exam – you have to survive with your lowly financial calculator – it’s still useful to be able to create amortization tables in a spreadsheet, to help you visualize the cash flows and account balances in a variety of financial […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level I Membership, CFA® Level II Membership

This will give you access to this and all other articles at that membership level.

Marginal Cost of Capital: Break Points

Posted by Bill Campbell III, CFA on April 2, 2014
Posted in: Level I Corporate Finance.

Typically, the more capital a company wants to raise, the more expensive it will be for each additional increment; i.e., as its capital budget grows, its marginal cost of capital (MCC) increases.  Because a company will undertake a project only when that project’s internal rate of return (IRR) is greater than the cost of capital […]

This article is for members only.  You can become a member now by purchasing a

CFA® Level I Corporate Finance Membership, CFA® Level I Membership

This will give you access to this and all other articles at that membership level.