Would/should estimates of firm value based on residual income model differ for two otherwise identical firms if

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Would/should estimates of firm value based on residual income model differ for two otherwise identical firms if one company uses more conservative accounting methods than the other? Explain how accounting analysis would help analysts make their abnormal earnings forecasts? How does accounting analysis help in this question, please explain in simple terms.

Posted Date: Nov 11, 2021 09:02 PM

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Would/should estimates of firm value based on residual income model differ for two otherwise identical firms if

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The abnormal earnings valuation model is a method for determining a companys equity value based on b... View the full answer

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