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Basic Question 3 of 5
If a company is in its growth phase and has large capital demand to fund its growth, ______ should NOT be used.
II. Free cash flow model.
III. Residual income model.
I. Dividend discount model.
II. Free cash flow model.
III. Residual income model.
User Contributed Comments 1
| User | Comment |
|---|---|
| danlan2 | If a company is in its growth, its free cash flow is often negative. |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
compare dividends, free cash flow, and residual income as inputs to discounted cash flow models and identify investment situations for which each measure is suitable;
CFA® 2025 Level II Curriculum, Volume 3, Module 21.