- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 21. Discounted Dividend Valuation
- Subject 1. Streams of Expected Cash Flows
CFA Practice Question
If control equity interest is being valued, ______ is the most suitable model to define a company's cash flows.
B. free cash flow model
C. residual income model
D. None of them can be used when an investor takes a control perspective.
A. dividend discount model
B. free cash flow model
C. residual income model
D. None of them can be used when an investor takes a control perspective.
Correct Answer: B
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