Hi folks,
On page 257 of the CFAI material, the CFAI gives an example of working through the H model. It refers to a previous example, Example 13, of the Carl Zeiss Meditec company.
What I can’t figure out: In Example 13, they say the dividend is .40. But in the calculation of the H model on page 257, they give a divident of .14.
And where does the required rate of return of .097 come from? In the example, it’s .09:(.
Am I missing something? Or is this an error? I checked the errata page but there is nothing on there about this.
Am going nuts…Thanks!
What year’s curriculum do you have?
In the 2015 curriculum, the example (16) on p. 257 doesn’t refer to Zeiss, is has a dividend of €1.77 (not €0.14) which is specified in the example, and the required return is 9.5% (not 9.7%), which is also specified in the example.
Hi Magician,
Thanks for answering. I have the 2015 curriculum and am referring to the example on page 257 that is ABOVE example 16. It is about Zeiss…Would you mind taking a look at it and see if you can figure it out. It is drawing material from Example 13 but it doesn’t make sense…thanks
I agree; it doesn’t make sense.
E-mail CFA Institute and ask them.