can i get anyone on board here? whats the process to tell cfai about an errata, i dont see a way to post it on their site
2 things 1. it is a multiple choice question. at best they will modify the numbers. 2. it is so close to the exam - by the time they do their due diligence and get back to you it will be past exam time. so on the exam do what you do: take the Normalized earnings - (Charge on WC - Charge on fixed tangible assets) = Earnings available for intangible assets. make sure you use the “tangible fair value” while calculating the charges. Earnings available for intangible * (1+g)/(r intangible - g) = Value of intangibles. value firm=Fair Value WC+Tangible Assets + Value Intangibles click choice, move on. if choice not found - remove the “1+g” factor , recalculate…
cpk: you and i both know that its not that easy with cfai. both answers will be there, with and withotu 1+g
then it will be one of the questions that gets trashed. try your luck with errata reporting this late, and keep us posted. send them an email at info@cfainstitute.org…
i just called them to see if its even worth emailing them. they flat out said you will not recieve a response until after the exam. so basically if there is agreement here that #15 needs to be multipled by 1+g, that is good enough for me. on the exam i will be assuming that the normalized earnings in the chart are for the current year and need to be grown.