CFA Practice Question

There are 96 practice questions for this study session.

CFA Practice Question

Gordon growth model is invalid for companies in ______ stage.

I. growth
II. transitional
III. mature
A. I and II
B. II only
C. I, II and III
Explanation: In these cases, analysts employ different types of models, such as two-stage DDM, three-stage DDM, and spreadsheet modeling.

User Contributed Comments 3

User Comment
tumanta Note: By gordon growth model, we mean only constant growth model. 2 stage model is not separate from gordon model.
yxten1 Gordon "growth" model is invalid for companies in "growth" stage..

you need a certain sanity level to fully understand it
LoCo83 This one got me
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