zimzim78 Wrote: ------------------------------------------------------- > Yep, I’m thinking B) and C) are definitely out. > You would use the H-model for C) (ie. gradual, > linear drop decrease in g) > > I’m trying to rationalize the barriers to entry > thing…thinking that they would experience > supernormal growth in a period where they have no > competition. At some point, that would take a > nose-dive off the cliff I think if a flood of new > competitors finally made it in the door. I don’t > know…I could see them trying to trick us with > some BS like this where we have to incorporate > some rational of the industry life cycles or > something. > > I’ll go with A) BINGO!!! While some others also chose A…( I was patiently reading all the posts…and puposely choosing not to put up my post)…the rationale behind choosing A was nailed in only by Zimzim… *HAIL ZIMZIM* *bowing down* so …schweser gave the same BS that zim zim above gave…but my argument is like the others…there is NOTHING in the question that says the barriers to entry will be broken…if they are saying HIGH barriers to entry shouldn’t we assume NO competition is coming in…yeah maybe not FOREVER…but for the sake of the question… zimzim…what’s your secret?? how do you train your mind to answer the schweser BS way!!! EDIT: just noticed…parket got it too…good going
I do see the rational behind the H-model being a 3 stage model… To make an H-model for FCFE you would repace D with FCFE and replace the growth rates for D with the growth rates for FCFE (you would probably need to make some other adjustments for beginning book value as well, not sure about the exact formula)
AHHHHHHHHHHHHHH. I go down with C. Don’t forget storko with A also. Nice work A choosers.
Mc leod i did not see anything similar in the curriculum am i right?
It is in schweser for sure. They just mention that you can do it, they don’t break out all the formulas.
wonder2008 Wrote: ------------------------------------------------------- > Mc leod i did not see anything similar in the > curriculum am i right? I believe that they say that the H-model can be used for the other DCF methods without providing much detail (or formulas) as to how it is done. Not positive though.
wtf? Zim totally stole my thunder!!
Hahaha, got ONE right. Feels good…now if I could only attain your mastery of the other 3,000 questions that have been posted, I might have a chance this time. Nah, I just seem to “get” this area…AND, we all know that they’re trying to get us to pull shite in our mind from other ares or combine LOS. It just seemed like it would be something more obscure and force you to show an understanding of what cycles or Porter’s forces can lead to various growth stages. My problem is, sometimes it is the easy, obvious answer and I overthink myself right out of time and options. Most of the time, I just don’t get it, ha!
I gave you props man.
lol. jk jk i really hope they dont questions like this. well, that was fun. back to work.
storko Wrote: ------------------------------------------------------- > wtf? > Zim totally stole my thunder!! Hahah, Storky. We got the Western Canadian train going!
storko Wrote: ------------------------------------------------------- > lol. jk jk > i really hope they dont questions like this. > well, that was fun. back to work. haha…“that was fun” !!! you crack me up… sorry didn’t mean to push you outside the spotlight… *HAIL STORKO* *BOWING DOWN* everybody…join in!!
STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO!
Nevermind.
^^ you’re kidding right?!?!?
Didn’t notice there was a second page to this one when I posted.
what he say? he deleted
STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO STORKO!
hahahahhahahahaaha people get back to work! i’m getting back to qbank… ta
very logical question.