Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
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 used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
calculate and interpret the value of a common stock using the dividend discount model (DDM) for single and multiple holding periods;
CFA® 2025 Level II Curriculum, Volume 3, Module 21.