Normalized EPS

Can anybody tell me where the Normalized EPS calculation is in Schweser or in the CFAI books? I have “Normalized EPS” on my list of notes to review but I cannot seem to find it anywhere. Any help would be appreciated…good luck on Saturday. Also, #93 on Mock PM is messed up. I agree with the other post.

Normalized EpS can be calculated as either 1) the average of past EpS, or as 2) average of past ROE * book value of equity per share.

Thank you - the 2nd calculation is the one I am looking for…maybe an example to make sure I understand this correctly… So if a firm had the following ROE: 2005 = 10% 2006 = 15% 2007 = 20% 2008 = 25% Current BV/Share of $5/sh …The normalized EPS would be = .175 x 5 = .87?

Yeah, but likely they’ll give you 2008 as a negative number or something screwy, and you would exclude that year and average the other 3 (they will say "it’s not representative) as your keyword.

good was looking for this…made this mistake in the CFAI sample