Question #46
Reading: Reading 20 Discounted Dividend Valuation
PDF File: Reading 20 Discounted Dividend Valuation.pdf
Page: 19
Status: Correct
Correct Answer: A
Question
Which of the following would NOT be appropriate to value a firm with two expected growth stages? A(an):
Answer Choices:
A. H-model
B. free cash flow model
C. Gordon growth model
Explanation
The Gordon growth model would not be appropriate for a firm with two stages of growth
but is useful to value a firm with steady slow growth.