Q20

kpark5kpark5
in Practice Exam - 2025-Fall

part (c), since we are calculating the "after-tax" CoC for each year, need to apply 25% tax on PV(CoC)?

Comments

  • Staff-T1Staff-T1
    Nope, you only adjust for taxes when moving from the target ROE to the cost of capital rate. You can then forget about the tax rate after doing so
  • kybazzikybazzi

    For (b): Is is (1) "possible" that we will be expected to recall formulas for various loss distributions (including lognormal), and (2) is it "likely"?

  • Staff-T1Staff-T1

    Definitely not! This is not a prelim exam - distributions and their moments should be provided

  • cashcrazycashcrazy

    Can we expect these VaR-related questions on the actual exam? I don't think I encountered any when I was doing the sample IFRS questions from the CAS website, so I'm a bit surprised to see them on the BA Practice exam

  • Staff-T1Staff-T1
    I don't know what is actually on the exam since I don't write the questions, but yes it's fair game as it is on the syllabus in the RA paper
Sign In or Register to comment.