Student Question

Course: Investment Planning Lesson 9: Equity Securities Student Question: Greetings Dan, I am in the Investment Planning course, on Topic 36.  In the sample questions that ask to determine bond yields, how do I determine the value for the end of period payment? For example, refer to Page 36.11, the practice question gives $37.50 as…

Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: I’ve seen this question come up a couple times, but can’t seem to grasp the answer. “If the Market Risk Premium were to increase, all other things being equal, the value of common stock would…” The answer is “decrease”, but that makes no sense to…

Course: Investment Planning Lesson 14: Evaluating Portfolio Performance Student Question: Hello! Re: Reverse Splits: When companies decide to do a reverse stock split, does the company always take in the outstanding shares as “treasury stock”? If not, what happens to the outstanding stock that has been taken away? Where does it go on the balance…

Course: Fundamentals of Financial Planning Lesson 5: Using the HP12-C Calculator Student Question: Hi, how do i know when to use CHS in the calculator, I’m a little unclear about  that. Instructor Response: Hi Julio- Good to hear from you.  Hope all is going well thus far. Yeah, this can certainly be confusing.  There are some…

Course: Investment Planning Lesson 3: Equity Securities Student Question: I’m having trouble following the math on the example (shown below) at the bottom of the page. Could you please walk through the calculations? I understand how the initial margin with cash amount is calculated, but it gets a bit fuzzy for me after that. Example…

Course: Income Tax Planning Lesson 4: Calculating Total Income Student Question: So, if I’m understanding this correctly, alimony recapture should no longer be an issue in 2019 and beyond due to alimony no longer being deductible, correct? Instructor Response: Hi Lafe, Good question. Alimony paid under a divorce decree executed before 1/1/19 will continue to…

Course: Investment Planning Lesson 1: Key Principles of Investing Student Question: Hi Dan- I don’t understand why this statement is true: “Beta is a measure of systematic, non-diversifiable risk.” I thought Beta was a measure ofrelative volatility? This is from a Board-Related Question in “Measures of Investment Risk” in “Principles of Investing”. Craig Instructor Response:…

Course: Insurance Planning Lesson: 17 – Business Uses of Life and Disability Insurance Student Question: Under the Stock Redemption Method – how is basis treated specifically to stock remaining outstanding (not Treasury stock) and how does this compare to the Cross Purchase Method? Is basis treated the same – do both methods provide the same…

Course: Estate Planning Lesson 7: Transfer Taxation IV – Generation Skipping Transfers Student Question: Wouldn’t Ellen be a non-skip person since Jane is deceased and she bumps up the ladder one step to be just one generation behind?? (See question below in which Ellen is identified as a skip person.) Question 1: The following chart shows the…

Student Question: Course: Investment Planning Lesson 9: Fixed Income Securities I don’t clearly understand how money is made in the mortgage-backed bond process.  What are mortgage pools? Does the investor make money from the interest of the pooled mortgages? What if the mortgages default? Thanks, Kevin Instructor Response: Great question.  Here’s a quick example: John Doe…