- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 8. Equity Valuation: Concepts and Basic Tools
- Subject 3. Present Value Models: The Dividend Discount Model
CFA Practice Question
According to the Gordon growth model, the dividend yield is equal to the required return minus the dividend growth rate. True or False?
Correct Answer: True
User Contributed Comments 3
| User | Comment |
|---|---|
| katybo | r-g= D/P |
| cong | Required Return of Equity = Div Growth Rate + Dividend Yield Compared it with current yield = coupon/price of bond. |
| bundy | V = D/k-g k-g = d/v d/v = div yield |