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American Bankers Association CTFA Exam - Topic 7 Question 37 Discussion

Posted by Scarlet on Oct 11, 2022 at 02:48 PM

Which of the following is also called the Gordon's Growth Model?

Suggested Answer: B

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44 comments · newest first
CA
Carmela 11 months ago
Hmm, I thought the Gordon's model was different from DDM.
DE
Deandrea 11 months ago
Yeah, I've seen it called that before. Makes sense!
JU
Justine 12 months ago
Wait, are we sure about that? I thought it was something else.
JA
James 12 months ago
Totally agree, that's what I've learned too.
WH
Whitney 12 months ago
It's definitely the Dividend Discount Model!
GO
Goldie 1 year ago
I vaguely remember that the Capital Asset Pricing Model is more about risk and return, so I don't think that's it.
LI
Lindsey 1 year ago
I feel like I might be mixing up the models, but I don't recall the Black-Scholes model being related to dividends at all.
AL
Alyssa 1 year ago
I remember practicing a question about the Gordon's Growth Model, and I think it was definitely linked to dividends.
GA
Gail 1 year ago
I think the Gordon's Growth Model is related to the Dividend Discount Model, but I'm not entirely sure if that's the correct name.
RY
Ryann 1 year ago
I'm a bit confused on this one. I'll need to review the material again to make sure I understand the different states of the assets.
AL
Alline 1 year ago
Hmm, this looks like a tricky one. I'll need to think carefully about the benefits of using Active Directory Single Sign-on for Blue Prism.
TE
Tequila 1 year ago
Okay, let me break this down. The RP is the Rendezvous Point, so the messages sent towards it are the ones we're looking for. I think the (*, G) Join/Prune and (S, G) Join/Prune are the two correct answers.
SO
Solange 1 year ago
Ah, I remember learning about this in class. The correct answer is B, `set`. That command shows you all the variables and functions that have been defined in your current Bash session.
CA
Catalina 1 year ago
This seems like a straightforward question about the purpose of an opening meeting for an audit. I'll review the options carefully and think through the key objectives of that meeting.
JO
Joana 1 year ago
The Gordon's Growth Model, huh? Sounds like something straight out of a fantasy novel. Maybe Gordon was a wizard who could predict stock prices with his magical growth model.
TE
Tequila 1 year ago
↳ replying to Joana
Interesting! The Gordon's Growth Model is also known as the Dividend discount model.
BI
Billye 1 year ago
↳ replying to Joana
C) Capital asset pricing model
CE
Celeste 1 year ago
↳ replying to Joana
Haha, that would be cool! But it's actually a financial model used to value a stock based on its expected dividends and growth rate.
AB
Abel 1 year ago
↳ replying to Joana
A) Dividend discount model
RO
Rosann 1 year ago
Really? The Gordon's Growth Model is the dividend discount model? Hmm, I always thought it was something to do with the Black-Scholes model. Guess I need to brush up on my finance terminology.
MA
Maile 1 year ago
Ah, the dividend discount model, of course! It's a classic in the world of finance. I bet Gordon must have been a pretty smart guy to have this model named after him.
AN
Annamae 1 year ago
↳ replying to Maile
Gordon's Growth Model is definitely a classic in the world of finance.
BR
Brice 1 year ago
↳ replying to Maile
It's based on the idea that the value of a stock is determined by the sum of its future dividend payments.
VE
Venita 1 year ago
↳ replying to Maile
Yes, the dividend discount model is a fundamental tool in finance.
AR
Ariel 1 year ago
I'm pretty sure the Gordon's Growth Model is related to the dividend discount model, but I can't quite remember the details. Time to review my notes!
JE
Jeannine 1 year ago
↳ replying to Ariel
No, the Gordon's Growth Model is not the Black Scholes Model. It's more about valuing stocks based on dividends.
CO
Colene 1 year ago
↳ replying to Ariel
D) Black scholes model finance
SA
Santos 1 year ago
↳ replying to Ariel
Actually, the Gordon's Growth Model is not the Capital Asset Pricing Model. It's related to dividends.
TH
Therese 1 year ago
↳ replying to Ariel
C) Capital asset pricing model
VI
Vivan 1 year ago
↳ replying to Ariel
Yes, you're correct! The Gordon's Growth Model is also known as the Dividend Discount Model.
KA
Kati 1 year ago
↳ replying to Ariel
A) Dividend discount model
CH
Chi 1 year ago
↳ replying to Ariel
Not quite, the Gordon's Growth Model is associated with the Dividend Discount Model.
BL
Blossom 1 year ago
↳ replying to Ariel
D) Black scholes model finance
RE
Refugia 1 year ago
↳ replying to Ariel
That's incorrect. The Gordon's Growth Model is actually related to the Dividend Discount Model.
BR
Brett 1 year ago
↳ replying to Ariel
C) Capital asset pricing model
AL
Alyce 1 year ago
↳ replying to Ariel
Yes, you're correct! The Gordon's Growth Model is also known as the Dividend Discount Model.
TA
Tayna 1 year ago
↳ replying to Ariel
A) Dividend discount model
LE
Leonora 1 year ago
I agree with Eleonore, A) Dividend discount model makes sense for Gordon's Growth Model.
SH
Sherly 1 year ago
The dividend discount model is also known as the Gordon's Growth Model. This makes perfect sense, as the model is used to value a stock based on the expected future dividends.
SC
Scarlet 1 year ago
↳ replying to Sherly
C) Capital asset pricing model
KE
Keva 1 year ago
↳ replying to Sherly
That's correct! The dividend discount model is also known as the Gordon's Growth Model.
SH
Shonda 1 year ago
↳ replying to Sherly
A) Dividend discount model
EL
Eleonore 1 year ago
I think it's A) Dividend discount model because it focuses on the present value of future dividends.
LU
Luz 1 year ago
A) Dividend discount model
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