Principle of Finance Questions???

[BlaineMiwa]

Hi Everyone,

I have two questions???

1. The new and updated Principles of Finance test will be required after Monday, August 31, 2009, but is available now...Has anyone taken the new exam and if so, how close is the information to IC cards. The DSST Fact Sheet matches closely, but I am wondering if all information is relevant.

2. From my understanding most of the test is concepts with the exception of a few equations. My question pertains to the formulas provided throughout all of the IC cards.

Are the formulas listed below which are seen on all modules throughout the IC cards on the test or only the formulas from the last module for equations on the test?

Break even sales point - Q = FC/(P-VC)
DOL at base level sales DOL=Q x (P-VC)/Q x (P-VC)-FC
Degree of Financial Leverage (DFL)= EBIT/EBIT-I-(PDx1/1-T)
Degree of Total Leverage (DTL)= Q x (P-VC)/Q x (P-VC)-FC-I-(PDx1/1-T)

Any assistance on these questions is much appreciated.

BlaineMiwa

[JanusthePhoenix]

The impression I get is that people here are very reluctant to dive headfirst into new tests without any intel beforehand, and understandably so. I'm taking this test in a few days as well, so it looks like you and I will be the guinea pigs. :confused:

I'm hoping that you're right about the test being light on calculations. If the practice questions are any indicator then things are looking that way, but who knows. The specific feedback for the last test seems to indicate otherwise. Again, we're talking about the new one, so we'll just have to find out for ourselves.

To be honest, I'm putting a lot of stock in my own 'gambler's luck' and reasoning ability going into this one...it's hard to study when you don't know exactly what to study. Kind of reminds me of my navy advancement exam.

As far as IC goes, read the specific feedback. I'll let you draw your own conclusions, but I'm not using it.

[jadechow]

As far as IC goes, read the specific feedback. I'll let you draw your own conclusions, but I'm not using it.

Hi JanusthePhoenix,

I was wondering why you are not using the specific feedback for this exam? Is it because you are taking the new version? I have this test on my radar as one upcoming (oh, yeah and dreading!!!) and would love to know your thoughts after you take it. You and I seem to be taking (in your case) and hovering around (in my case) a lot of the same tests/classes. You are doing a great job and I appreciate the help you've given me.

Also, on a side note, I was wondering about your name. Is it a reference to the Australian television shows?

Thanks so much!!

Kelly

[JanusthePhoenix]

I was wondering why you are not using the specific feedback for this exam?

Also, on a side note, I was wondering about your name. Is it a reference to the Australian television shows?

Oh I went through the feedback and took it for what it was. What I meant was that I wasn't using the IC flashcards, because they weren't written for the new exam, and apparently were only somewhat useful for the old one to begin with. I'm using Barron's Finance to study for this one, so we'll see how that works out. (Well, I hope.) I'll post my thoughts in the specific feedback next week when I'm done. Thanks for the support! It's nice to know someone else is going through the same thing I am.

I'm not sure what show you're talking about...Janus is a reference to the Roman diety, and Phoenix refers to a tattoo of mine that I'm particularly proud of.

[jadechow]

Oh, I get it now. Thanks.

And, this is the tv show I was referring to. Kind of like an Aussie version of a Law&Order type thing. Interesting coincidence on the name!

http://en.wikipedia.org/wiki/Phoenix_(TV_series)
ABOUT PHOENIX AND JANUS

[categ]

Has the Dantes description changed for the new exam or is the old description still up on the website?