标题: Schweser Mock 3 Book 2 Q91 AM [打印本页] 作者: Maddin 时间: 2013-4-3 00:48 标题: Schweser Mock 3 Book 2 Q91 AM
can someone shed some light here. Dont know what im missing. Its a multi stage DDM question and this exactly how question appears. ‘Jack George is evaluating Dunger Inc a waste management firm. The company has been experiencing strong 15% growth,which is forecast to continue over next 3 years before growth slows to a sustainable rate of 8%. George has calculated 10% WACC for Dunger. The firm has no debt. The company’s last reported trade was $34 per share. Based on multi stage DDM,George should: A. Not Buy the stock B. buy stock because intrinsic value is $38 per share. C. buy stock because its intrinsic value is $41 per share. My problem with this question is that it makes no mention of the dividend. Yet the answer key says D1 is 0.5. I have not checked for errata with Schweser but perhaps one has to somehow determine D1 from the info given. I could not answer the question at all. Anyone out there see something that i am not?作者: kamara5 时间: 2013-4-3 00:53
you’re not alone
the div is not given which must be an erratum imo..
first time i came across this i just calculated with div=1.作者: Bulla564 时间: 2013-4-3 00:59
geez. Jus read another post bout posting questions, ie. CFAI Mock ect and violations. So does this apply to us not posting actual questions like what i jus did with the Schweser question? Thats harsh. How on earth do u delete posts then?
