- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 21. Discounted Dividend Valuation
- Subject 7. Multistage Dividend Discount Models
CFA Practice Question
True or False? An analyst must use DDM to estimate terminal value.
Correct Answer: False
He can use P/E or other multiples to calculate terminal value.
User Contributed Comments 5
| User | Comment |
|---|---|
| ssradja | "must" is a key word |
| JimM | Yeah, never trust those absolute words, like "must," "always," and "never." |
| ybavly | You must absolutely never trust them! |
| shettyp | @Ybavly...LOL! |
| davidt876 | lol |