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- Topic: The hardest CFA formulas to remember?
| Author | Topic: The hardest CFA formulas to remember? |
|---|---|
| smerttut @2019-06-15 20:53:22 |
Which formulas do you find irritating to remember? For me its the ones with exchange rates - forward, spot and inflation ones and order of numerator and denominator. Also the FCFF/FCFE catches me out as its quite uncommon. Thoughts? |
| frankg @2019-06-16 04:14:21 |
I find exchange rates formulas are not too difficult to memorize since you may be using it in real life anyway when traveling. Think of your own currency in exchange for another currency that is definitely cheaper or more expensive (don't use CAD/ USD as they are too similar) then always remember that scenario and what "makes sense" to put on the numerator and denominator. Also FCFF/FCFE you need to memorize ONE example and really understand the concepts, put a story on it, FCFF is for both debt and equity owner, and FCFE is for equity holder only. Try to think of what makes sense to include/ exclude for these stakeholders. Good luck! |
