I am baffled by this question from IFT Mock (H-Model)

CFA Level II Equities
#1

Estimate the stock value using the H-Model

Required return 13.2%

WACC 11.19%

Dividend payout ratio 40%

Most recent EPS $4.35

Current dividend growth rate (expected to persist 10 years) 12%

Growth will decline linearnrly to final and perpetual value of 5%

Current stock price $60

This is supposed to be a very simple question, but instead of finding D0 and proceed with using H-model formula, the answer uses EPS0 as D0. Am I missing something here?

#2

I didnt have a baffling experience with that question. You use E0 to find D0. The solution has it correct.

$4.35 x .4 = $1.74

#3

I must have been blinded. I even calculated the correct answer, but due to rounding I thought I couldn’t find the answer. I appreciate your help!

#4

My favorite IFT h model question was to find R when the long term growth rate matched the short term growth rate.