2004 CFA level 2 mock exam

... opportunity: US$1,000,000 × 2. 3844 = BRL2,384,400 2, 384,400 × 0. 525 0 = C$1 ,25 1,810 C$1 ,25 1,810/1 .22 59 = US$1, 021 ,135 US$1, 021 ,135 – US$1,000,000 = US $21 ,135 profit 20 14 CFA Level II
 "Currency Exchange... liabilities 20 12 
 ($ millions) Net 20 11 increase 
 ($ millions 
 ($ millio ) ns) 1 ,29 0 – 32 = 1 ,25 8 1,199 – 21 =1,178 2, 783 2, 678 –1, 525 Working capital –1,500 25 FCFF = 626 + 24 3 + 186(1 – 0. 32) –... borrowing Given: 20 12 FCFF base case estimate = $500; Interest expense = $186; Tax rate = 32% Long-term debt ($) 20 12 2 ,24 9 20 11 2, 449 Net increase 20 0 FCFE = 500 – 186 × (1 – 0. 32) + ( 20 0) = $174