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 am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
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.