Can someone please look at this and see if they Schweser messed it up? Thanks.
Yes, Schweser messed this up. Should have used 7.2% in calculation instead of 8% in explanation.
They put out an errata for this Q: "Assume for this question that De Jong has changed her estimate of the exp r on the market so that the required return on equity changes to 8% (March 30, 2008)