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 3
The fundamental determinants of residual income are:
II. P/E.
III. The present value of future profits.
IV. Book value of equity.
V. Terminal value.
I. P/B.
II. P/E.
III. The present value of future profits.
IV. Book value of equity.
V. Terminal value.
User Contributed Comments 0
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain fundamental determinants of residual income;
explain the relation between residual income valuation and the justified price-to-book ratio based on forecasted fundamentals;
calculate and interpret the intrinsic value of a common stock using single-stage (constant-growth) and multistage residual income models;
CFA® 2025 Level II Curriculum, Volume 4, Module 24.