# crunching, 2 stage DDM/FCF

in regards to questions with two stages of dividend or free cash flow growth how much # crunching is likely to be involved to solve for current value? these can be quite time cosuming, esp the FCF questions when each component is based on % growth of sales. the H-model and three stage ?'s can actually be solved more quickly. thanks, John

My strategy is: “expect everything and assume nothing”. So if it is somewhere in the CFAI curriculum I am going to be ready to do it. Seems like each year 60% of the people are expecting X and ending up seeing Y on the exam (ie: fail).

Its seems unlikely that we will be asked to calculate a FULL foretasted income statement and balance sheet. What seems more likely is a vignette that says Fred calculated the following data but was not able to complete it…fill in the missing information. So in other words you need to know how to do it. But that’s just a guess