Going through Schweser Book 3 (Equity Investments) and I ran into this little mind bender.
Question is on page 176 and answer is on page 182
Every single one of these is wrong, right?
Yr0 should be $0.80 and Yr6 should be $2.75?
See image: http://i42.tinypic.com/256y3gn.jpg
EDIT: Nevermind, I forgot to adjust the FCF by the target Debt/Asset Ratio
$1.50 - (0.70*0.50) - (0.70*0.20) = 1.50 - 0.35 -0.14 = $1.01