Yeah, I actually really like this one despite the fact that I got it wrong cause 1) I’m a retard and 2) I tend to rush through questions when I’m at work.
I think its C. A - the company has signficant barriers to entry, so its most likely to be a growth company. The growth rate will decline into moderate phase before it grows at the same rate with the economy. B - same reasoning with A. D-constant growth model is used here. What is the answer dude?
jeez…I can’t believe people are still threading on this post…!! answer is A…and it was posted a decade ago 
is H-model a two stage model??? if NO, answer is A
B i think what is right answer
Post the answer already Mumu!!! This has got to be a f*cking joke or analyst forums has just been overrun by keyboard wielding retards. 51, 8, and 17 posts respectively.
have you read the thread?
I don’t like A. What if you don’t expect the entry barriers to be lifted at any point?
storko Wrote: ------------------------------------------------------- > have you read the thread? I was joking.
correction to my previous answer. It should be C CFAI book IV p316. “Fuller and Hisa developed a variant of two-stage mode” which is H-model. so two-stage mode can have the situation described in answer C.
ok…itfaster, brother bilo, rajiv…etc…and ANYONE else who chooses to continue trying to answer the question… this thread is on it’s THIRD PAGE!! The answer was posted loooongggg agooo…some people even got upset that others stole their thunder!!!..then we had a cheering squad going to make him feel better…in fact…some people have probably had babies since this thread started…! bottom line: please go back and read…the answer has been posted!
Hi, I just read that the H model can be used with the FCFF or FCFE model. It is just a matter of changing the numerator…
thanks… I believe H-model can be used with any substitute of cash flow, whether it is dividends, fcff, fcfe etc…