The flight instructor said the instructional flight was to prepare the student for his stage two check, which was to be followed by his first solo flight. The student had received 41.2 hours of instruction, with 5.4 hours in this make/model aircraft. The flight instructor had planned for a simulated engine failure after takeoff; it was the flight instructor's first practice simulated engine failure after takeoff in this make/model aircraft. He pulled the throttle to idle, but the student held the yoke in the climb attitude as opposed to nosing the airplane down for best glide speed. The flight instructor said that he realized the airspeed was low and the aircraft was in a high rate of descent, but his remedial attempts did not prevent a hard landing. The airplane's firewall was wrinkled, and the empennage and horizontal stabilizer were bent.