CFA Practice Question

There are 96 practice questions for this study session.

CFA Practice Question

The application of ______ depends on the quality of accounting disclosure and the degree of distortion.

A. Dividend discount model.
B. Free cash flow model.
C. Residual income model.
Correct Answer: C

User Contributed Comments 2

User Comment
ostrich Tricky!
MonkeySee Not Really, ostrich:
A) Discounts are fixed payments, especially past ones
B) Cash flow statments are difficult to manipulate
C) Net Income is based on many accounting assumptions!
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