Is this a mistake ?(Schweser practice exam 1 - contains spoiler)

CFA Level II Equities
#1

I was pulling my hair during the test trying to figure out why my answer is not matching any of the available options. Click here for the available data. We are asked to calculate the value of the firth through FCFF so I normally set out to calculate WACC.

Turns out schweser solution uses the cost of debt as is in this table and does not calculate the after tax cost of debt. Is there a reason why? Or is it just a mistake on their part?

Thanks in advance for any help :confused:

#2

I think that was just a mistake on their part.

#3

I guess it is… Thx lockheed!

#4

It is errata, look at the website

#5

Yeah they corrected that mistake. They said to just interpret 4.5% as the after tax cost of debt.

Always gotta check errata or you’ll end up, like you said, “pulling your hair out.” And I for one am losing enough hair already from studying.