CFAI Book 4, RD. 44, PG. 683, Q15. In the answer they do not grow the Value of Intangibles by 6% to arrive at the final answer but in Q4 they do grow the value of intangibles. Q15 28.8/(.2-.06)=205.71 Q4 (460,000x1.05)/(.15-.05)=4,830,000 Why?
This has to be an errata from their side. Because in my CFAI book, both the answers use the CCM method for calculating the final value. While in the text it is clearly given that you need to multiply by growth rate. Maybe, they haven’t caught the errata for this one yet.
In your CFAI books, for Q15, they have the growth added (28.8x1.06)? Shouldn’t all CFAI books have the same errors?
No they don’t have the growth multiplied. They just mention that using the CCM method, this is answer.