SCHWESERNOTES™ 2019 LEVEL II CFA® BOOK 2: FINANCIAL REPORTING AND ANALYSIS
AND CORPORATE FINANCE
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Author(s): Schweser, Kaplan
Series: LEVEL 2
Year: 2019
Language: English
Pages: 391
Contents......Page 2
List of pages......Page 5
Learning Outcome Statements (LOS)......Page 14
Module 14.1: Classifications......Page 22
Module 14.2: Financial Assets, Part 1......Page 25
Module 14.3: Financial Assets, Part 2—Impairments, Reclassifications......Page 29
Module 14.4: Investment in Associates, Part 1—Equity Method......Page 33
Module 14.5: Investment in Associates, Part 2......Page 37
Module 14.6: Business Combinations: Balance Sheet......Page 38
Module 14.7: Business Combinations: Income Statement......Page 41
Module 14.8: Business Combinations: Goodwill......Page 43
Module 14.9: Joint Ventures......Page 47
Module 14.10: Special Purpose Entities......Page 50
Key Concepts......Page 54
Answer Key for Module Quizzes......Page 56
Module 15.1: Types of Plans......Page 59
Module 15.2: Defined Benefit Plans—Balance Sheet......Page 61
Module 15.3: Defined Benefit Plans, Part 1—Periodic Cost......Page 65
Module 15.4: Defined Benefit Plans, Part 2—Periodic Cost Example......Page 68
Module 15.5: Plan Assumptions......Page 71
Module 15.6: Analyst Adjustments......Page 74
Module 15.7: Share-Based Compensation......Page 78
Key Concepts......Page 81
Answer Key for Module Quizzes......Page 83
Module 16.1: Transaction Exposure......Page 86
Module 16.2: Translation......Page 88
Module 16.3: Temporal Method......Page 92
Module 16.4: Current Rate Method......Page 93
Module 16.5: Example......Page 97
Module 16.6: Ratios......Page 104
Module 16.7: Hyperinflation......Page 110
Module 16.8: Tax, Sales Growth, Financial Results......Page 114
Key Concepts......Page 119
Answer Key for Module Quizzes......Page 122
Module 17.1: Financial Institutions......Page 126
Module 17.2: Capital Adequacy and Asset Quality......Page 128
Module 17.3: Management Capabilities and Earnings Quality......Page 133
Module 17.4: Liquidity Position and Sensitivity to Market Risk......Page 134
Module 17.5: Other Factors......Page 138
Module 17.6: Insurance Companies......Page 143
Key Concepts......Page 149
Answer Key for Module Quizzes......Page 151
Module 18.1: Quality of Financial Reports......Page 154
Module 18.2: Evaluating Earnings Quality, Part 1......Page 159
Module 18.3: Evaluating Earnings Quality, Part 2......Page 164
Module 18.4: Evaluating Cash Flow Quality......Page 166
Module 18.5: Evaluating Balance Sheet Quality......Page 168
Key Concepts......Page 176
Answer Key for Module Quiz......Page 178
Module 19.1: Framework for Analysis......Page 181
Module 19.2: Earnings Sources and Performance......Page 183
Module 19.3: Asset Base and Capital Structure......Page 187
Module 19.4: Capital Allocation......Page 189
Module 19.5: Earnings Quality and Cash Flow Analysis......Page 193
Module 19.6: Market Value Decomposition......Page 198
Module 19.7: Off-Balance-Sheet Financing and Changing Accounting Standards......Page 200
Key Concepts......Page 203
Answer Key for Module Quizzes 189......Page 205
Topic Assessment: Financial Reporting and Analysis......Page 207
Topic Assessment Answers: Financial Reporting and Analysis......Page 212
Module 20.1: Cash Flow Estimation......Page 215
Module 20.2: Evaluation of Projects and Discount Rate Estimation......Page 227
Module 20.3: Real Options and Pitfalls in Capital Budgeting......Page 237
Key Concepts......Page 250
Answer Key for Module Quizzes......Page 253
Module 21.1: Theories of Capital Structure......Page 258
Module 21.2: Factors Affecting Capital Structure......Page 263
Key Concepts......Page 273
Answer Key for Module Quizzes......Page 275
Module 22.1: Theories of Dividend Policy......Page 277
Module 22.2: Stock Buybacks......Page 287
Key Concepts......Page 300
Answer Key for Module Quizzes......Page 304
Module 23.1: Corporate Performance, Governance, and Business Ethics......Page 307
Key Concepts......Page 315
Answer Key for Module Quiz......Page 317
Module 24.1: Corporate Governance......Page 318
Key Concepts......Page 331
Answer Key for Module Quiz......Page 334
Module 25.1: Merger Motivations......Page 336
Module 25.2: Defense Mechanisms and Antitrust......Page 343
Module 25.3: Target Company Valuation......Page 351
Module 25.4: Bid Evaluation......Page 364
Key Concepts......Page 373
Answer Key for Module Quizzes......Page 378
Topic Assessment: Corporate Finance......Page 383
Topic Assessment Answers: Corporate Finance......Page 386
Formulas......Page 387
