Siddimaula

u are right,”ro” refer to wacc for all-euity company but all-euity company is one of many possibilities of wacc that should applied to wacc=re*E/(D+E)+rd*(1-t)*D/(D+E) formula.
re= r0+ (r0-rd) (1-t) D/E and wacc=re*E/(D+E)+rd*(1-t)*D/(D+E) must be equivalent,but they aren’t.
in perivious curriculum of CFA ,re= r0 + (r0-rd (1-t)) D/E formula have been used but in 2012 curriculum this formula changed to re= r0+ (r0-rd) (1-t) D/E.
whats wrong?!!!

Siddimaula

go to their website - and it is there to find out.
or send an email to info@cfainstitute.org and mention Erratum … on the mail subject
with pg #, and details …. in the body