Anyone here think it’s wise to abandon learning the whole multiple-round financing procudure? I got the single round down just fine, but don’t think it’s wise to dedicate the extra time and brain-space to continue on and get proficient at multiple rounds. I think there’s more bang for the buck by focusing on something else. Anyone out there agree/disagree? Would love to hear comments. Thanks!
I don’t have experience taking L2, so I cannot speak to the likelihood of multiple rounds of financing being on the exam, but I’d be very weary of skipping any topic that’s included in the Learning Outcomes. I’m approaching this exam with the mindset that every topic included in the LOs could be an entire vignette (or at least a significant portion). You wouldn’t want to be caught off-guard, because bombing an entire 6 question set could mean the difference between passing and failing. That’s just my mindset though.
Honestly, I feel like the test is far enough away that there’s no good reason to skip pretty much anything. Now, if there was like a month left my advice may be different and go something like “focus on the important topics, etc.”. But with this much time, I’d say hit everything.
Well said, Monkey. Time to suck it up, I guess.
I went over it, but will probably forget it. But what I do remember is that it was conceptually making sense, so could probably piece it together going backwards using the same logic.
A second round of financing is basically the same mechanically as the first round, but the trick is to keep all the numbers straight. That being said, a mulitple round financing question seems a bit too involved for an item set (unless they wanted to devote mulitple questions to it). My guess it that they would focus on a single round of financing as understandting that concept (and calculations) is applicable directly to the second round.
Key Concepts to be sure to know: # shares issued to the aquirer based on percentage ownership desired (or shares to remain with original owners) and mechanics of calculating pre/post transaction values.
If you can do the first round, you can do subsequent rounds. Seriously, it isn’t that much more difficult.
I wouldn’t abandon anything that’s covered in an LOS; it’s all fair game.
I would put in the extra 10 minutes to master the second round as well.