I’m using the CFAI books and I found material on the LOS that says “calculate nominal and real-term financial projections in order to prepare a discounted cash flow valuation of an emerging market company” very confusing. I understand the basic idea, but without an example where you see what they’re doing step by step I have a hard time knowing how to answer a question on this. What made it even worse is that there are no practice questions on this reading. I may have to pull out my Schweser books from last year for this reading. Is it identical for both years?
I have not read this section yet but I would think it pertains getting inflation rate and the real rate equates to nominal rate…