Do any of you have trouble with question 6? The question says RI model but then never in the CBOK have the growth rate been applied directly to RI instead of NI. How am I suppose to know if the question did not specific what this growth rate is on? Am I missing some of the fine prints?
Perhaps this is a very late response, but I just finished Mendosa case and was infuriated by this issue as I also calculated RI for each of the five years by applying the growth rate to NI only to find out from the explanation that the growth rate given is for RI! And all I needed is to calculate RI for the first year and apply (1+g)^5 to derive RI(5). How I supposed to know this?
It’s April 2016, two year later, and the CFAI hasn’t updated the case. I see many similar issues with other cases as well. This is really very frustrating, especially after all these discussion about Prudence, Professionalism, and etc in the Ethic part. D**n hypocrites!