Schweser practice exam 2 AM. Possible wrong answer?

For question 14, I can understand everything except one: The answer uses a required rate of return of 8% to calculate terminal value. Is this valid? I have no idea where that 8% comes from. Anybody can give me some hint?

There’s an errata for that Q.

where to find the errata? And what is the solution if you have it? Thanks a lot.

Schweser website Errata section (on left of the screen below where the Vol 1 exam stuff is).

go to and select CFAII on the left…then when the new screen pops up scroll down the left side (towards the bottom) and there’ll be an errata link. There are updates for all the notes, secret sauce, and exam volumes 1/2

Thanks a lot, guys. This helps.