# CFAI Website: Submit a comment about the June 2009 exam

Well we should certanly point out that question on PVGO

y? i got that right, it was tricky, but not at all a bad question!

Doesn’t the CFAI book use E1/r but the worked example/EOC question in the book use E0/r?

Oops! I didn’t do the EOC & i used E1! Phew!

do we have the question number of the pvgo problem ?? does someone remember it? i took the 5050/5151 exam but do not remember the question number and would like to send the cfai my feedback.

I submitted a comment to the the CFA about PVGO. I pointed out that there is a conflicting info on CFA textbook. The chapeter uses E1 but the test at the end of chapter uses E0. I personally think it’s E0 because it represents the no-growth factor, where all earnings are paid out as dvds. In that case retention ration is zero and growth rate is zero. Therfore E0=E1=E2=E45.

I asked a question about this on the forum a while ago. It was reading 41 question 20. They very clearly use current E/S. I don’t remember whether I used current earnings or next years on this question on the exam. Here is the question and their answer Current EPS=2.40 Current Stock price=29 Cost of Equity=10% Return on Book Equity=12% Sustainable Growth Rate=4% So P=E/R+PVGO 29=2.4/0.1 + PVGO PVGO=29-24=5\$ mik82 Wrote: ------------------------------------------------------- > I submitted a comment to the the CFA about PVGO. I > pointed out that there is a conflicting info on > CFA textbook. The chapeter uses E1 but the test at > the end of chapter uses E0. I personally think > it’s E0 because it represents the no-growth > factor, where all earnings are paid out as dvds. > In that case retention ration is zero and growth > rate is zero. Therfore E0=E1=E2=E45.