I don’t think there’s anyway the answer was growth. If I remember correctly the company paid a dividend. Growth companies do not pay dividends.
i cant remember anymore - but i thought that the company was discussing initiating a dividend? therefore it is currently growth, soon to be mature
on a side note - if we use the definition of mature as a company paying a dividend then… mature companies only grow at the same rate as GDP and that implies ALL DIVIDENDS GROW AT THE SAME LONG-TERM RATE so there is no real reason to ever use the DDM… it should just be the current dividend multiplied by a constant… but maybe i’m getting to philosophical
CFAMetal Wrote: ------------------------------------------------------- > I don’t think there’s anyway the answer was > growth. If I remember correctly the company paid a > dividend. Growth companies do not pay dividends. I don’t think there’s anyway the answer was mature. If I remember correctly the company had above average profits. Mature companies do not have above average profits.
“Mature companies do not have above average profits.” Don’t they? How about coca-cola, walmart, chevron, apple?? For the record, I selected “Transitional”: spent the two intermission hours before PM exam cursing myself about it.
This thread should be renamed “the thread that never dies”!
OK, I am sorry to be jerk about this, but I was a person who read the CFAI text and did not use Schweser books (but did listen to their audio and reviewed Secret Sauce). The exam said they had above average sales growth or above average growth in earnings. I cannot remember which one. It was declining but, but still above average. I BELIEVE the exam asked for Industry Life Cycle. Given those inputs, and reading the last paragraph of page 227 CFAI test V. 4, there can be no way the firm was Mature. If you want to argue and say that it was asking for DDM Life cycle, fine, good argument. But, I find it extremely difficult to be Mature. Please read the CFAI text and show me where I am wrong. Honestly, I am one of those that believes the CFAI goes after point in there text that are slightly off from Schweser or Stalla. Nowhere in this portion of the text does it mention the status of the above averageness (made up word). It is a digital, either on or off. ABove average sales growth = Growth. Above average but declining still = growth.
ROE is high for a mature company. True story.
…
Answer was mature, transitional was a distractor
hobokencfa Wrote: ------------------------------------------------------- > Answer was mature, transitional was a distractor True story.
a very obvious one, might I add
TheAliMan Wrote: ------------------------------------------------------- > I just checked with CFAI Institute. Both answers > correct. are you serious or just kidding around?
I’m just kidding around 
Mature- industry cycle, twas what they asked. Transitional is a growth stage of GDDM. Splitting hairs and breaking spirits is their MO. I’m a certified intellectual masochist sticking with this program…
AAAHHHHH yes it starts again!!! OK, reading the bottom of page 227 in text 4, how can you say mature when sales growth was above average. It was growth!! Even Michael Jackson knows that. What…too soon!!!
jsjrcomcast Wrote: ------------------------------------------------------- > AAAHHHHH yes it starts again!!! OK, reading the > bottom of page 227 in text 4, how can you say > mature when sales growth was above average. It > was growth!! Even Michael Jackson knows that. > What…too soon!!! the stupidest reply that I have seen lately!!!
Milos Wrote: ------------------------------------------------------- > jsjrcomcast Wrote: > -------------------------------------------------- > ----- > > AAAHHHHH yes it starts again!!! OK, reading > the > > bottom of page 227 in text 4, how can you say > > mature when sales growth was above average. It > > was growth!! Even Michael Jackson knows that. > > What…too soon!!! > > the stupidest reply that I have seen lately!!! Really??? I have written way more stupid stuff than this!!! Jeez, pay attention
jsjrcomcast Wrote: ------------------------------------------------------- > Milos Wrote: > -------------------------------------------------- > ----- > > jsjrcomcast Wrote: > > > -------------------------------------------------- > > > ----- > > > AAAHHHHH yes it starts again!!! OK, reading > > the > > > bottom of page 227 in text 4, how can you say > > > mature when sales growth was above average. > It > > > was growth!! Even Michael Jackson knows that. > > > > What…too soon!!! > > > > the stupidest reply that I have seen lately!!! > > Really??? I have written way more stupid stuff > than this!!! Jeez, pay attention Impressive. with only 20 posts… Cheers
Bla bla. That’s it, nothing to say, just wanted to bring this thread back to the first page and have a good laugh…