CFA Practice Question

There are 96 practice questions for this study session.

CFA Practice Question

A two-stage DDM is called the H-model when
A. There is a constant growth rate in each stage, such as 16% in stage 1 and 6% in stage 2.
B. There is a linearly declining dividend growth rate in stage 1 followed by a fixed growth rate is stage 2.
C. These two concepts (two stage DDM and the H-model) are totally different and have no direct relationship.
Explanation: It is the growth rate pattern assumed by the H model.

User Contributed Comments 0

You need to log in first to add your comment.