Problems in the replication of Jaimovich and Floetotto 2008 appendix

I am trying to replicate Jaimovich and Floetotto 2008 -Firm dynamics, markup variations, and the business cycle, appendix… But i am getting this error:
Impossible to find the steady state (the sum of square residuals of the static equations is 0.0000). Either the model doesn’t have a steady state, there are an infinity of steady states, or the guess values are too far from the solution
rep1.mod (3.1 KB)

I have tried to check all the equations and steady state but couldn’t find the mistake. Can anyone please help?

Kind regards,

Your model tells you that


but that is inconsistent with your parameters as


would have a 0 in the last term.