Normalised EPS - Schweser Practice Exam AM 1

Yr - 2008 - 2007 - 2006 - 2005 BVPS 25.58 - 33.62 - 37.54 - 32.26 ROE 3.2% - 4% - 4.5% - 3.9% Based on method of average return on equity the normalised EPS is what? So I got the average ROE which is fine and then I times it by the 2008 BVPS figure. However in the answers they times the average ROE by the 2007 BVPS figure, can someone please explain why??

This is a typo in the answer. When you look at the figures in the answer you can see they use the BVPS for 2008.

I just checked schweser and they got an example there as well very similar which uses the 2007 figure as well so…

Yea they say they use the 2007 BVPS but they actually use the 2008 BVPS value in the calculation i.e. 25.58.

Just had another look and you’re right… Man this exam is hard enough without muppets writing the examples and answers to confuse!!!

dude I am totally with you, Scweser is awful if I had actually paid for anything of theirs I would be calling demanding all of my money back (ex. see my thread here:,971584).