Question: 1) How do we derive the Residual Income model ? 02) Discuss two differences between Discounted Cash Flow and Residual Income Model in deriving enterprise
1) How do we derive the Residual Income model ? 02) Discuss two differences between Discounted Cash Flow and Residual Income Model in deriving enterprise value. 03) Discuss in words why DCF and RIM, given similar assumptions, should result in the same target value for the enterprise.
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