in calculating the TV, why are they using 8% in the denominator? where is the 8% from? my calculation is TV = 2.725/(0.072 - 0.04) = 85.468 Schweser’s solution: TV = $2.74 / (0.08 – 0.04) = $68.50 is there a mistake in the question or am i missing something here?
Mistake in the question. Use 8%.
thank god!
schweser errata is your friend 