Help S2000magician: Error in H-Model example? Not listed on errata page. Really can't figure this out....

[monkeymath]

Hi folks,
On page 257 of the CFAI material, the CFAI gives an example of working through the H model. It refers to a previous example, Example 13, of the Carl Zeiss Meditec company.
What I can’t figure out: In Example 13, they say the dividend is .40. But in the calculation of the H model on page 257, they give a divident of .14.
And where does the required rate of return of .097 come from? In the example, it’s .09.
Am I missing something? Or is this an error? I checked the errata page but there is nothing on there about this.
Am going nuts….Thanks!

 

[S2000magician]

What year’s curriculum do you have?
In the 2015 curriculum, the example (16) on p. 257 doesn’t refer to Zeiss, is has a dividend of €1.77 (not €0.14) which is specified in the example, and the required return is 9.5% (not 9.7%), which is also specified in the example.

 

[monkeymath]

Hi Magician,
Thanks for answering. I have the 2015 curriculum and am referring to the example on page 257 that is ABOVE example 16. It is about Zeiss…Would you mind taking a look at it and see if you can figure it out. It is drawing material from Example 13 but it doesn’t make sense…thanks

 

[S2000magician]

I agree; it doesn’t make sense.
E-mail CFA Institute and ask them.