Reading 27: Excess Earnings Method

CFA Level II Equities
#1

Hi,

I refer to Question 15 of Reading 37 EOC (page 471) and to the excess earning method example presented on page 445). On page 445 the growth rate is multiplied to the amount while in question 15 it is not multiplied. Can anyone elucidate? Perhaps I am missing something or mixing methods.

Thank you.

#2

Im not looking at the question now, however the the FCFF given is already grown at t=1

#3

You are absolutely right trogulj - Ive missed the word ‘projected’. Thank you very much for your help and all the best with your studies.