American Bankers Association Exam CTFA Topic 7 Question 37 Discussion

Actual exam question for American Bankers Association's CTFA exam

Question #: 37
Topic #: 7

[All CTFA Questions]

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

ADividend discount model

BBinomial models finance

CCapital asset pricing model

DBlack scholes model finance

Show Suggested Answer

Suggested Answer: B

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

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Joana

1 months 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.

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Abel

18 days ago

A) Dividend discount model

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Rosann

1 months 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.

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Maile

1 months 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.

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Venita

16 days ago

Yes, the dividend discount model is a fundamental tool in finance.

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Ariel

2 months 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!

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Vivan

2 hours ago

Yes, you're correct! The Gordon's Growth Model is also known as the Dividend Discount Model.

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Kati

1 days ago

A) Dividend discount model

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Chi

13 days ago

Not quite, the Gordon's Growth Model is associated with the Dividend Discount Model.

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Blossom

16 days ago

D) Black scholes model finance

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Refugia

17 days ago

That's incorrect. The Gordon's Growth Model is actually related to the Dividend Discount Model.

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Brett

18 days ago

C) Capital asset pricing model

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Alyce

25 days ago

Yes, you're correct! The Gordon's Growth Model is also known as the Dividend Discount Model.

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Tayna

2 months ago

A) Dividend discount model

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Leonora

2 months ago

I agree with Eleonore, A) Dividend discount model makes sense for Gordon's Growth Model.

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Sherly

2 months 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.

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