- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 24. Residual Income Valuation
- Subject 4. Fundamental Determinants of Residual Income
CFA Practice Question
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.
Correct Answer: III and IV
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