|Author||Topic: Can a question come from multiple study sessions?|
|Hello guys, a friend of mine, giving the l1 exam in December, asked me about the questions of l1. He asked if a question could be a combination of different study sessions,
For example. If i have to calculate the growth rate on Corp Finance which is (1-D/EPS)xROE and the ROE is not given but i have the following information Net Income = x and AVG Equity = y so ROE = x/y But this ratio is given on FRA and not on Corp Finance. So is each section a thing of its own or there can be questions that you have to combine knowledge from many study sessions?
|The general answer is: no, questions are grouped by topic area and each question involves only one topic area.
The specific answer is: I don't know. It's possible in a corporate finance question you would have to compute ROE to get to the sustainable growth rate. They might not worry about that one. If I were your friend, neither would I.