Comment on the following statement. The residual income model is no different from the dividend discount model.

Question:

Comment on the following statement. “The residual income model is no different from the discount model. Therefore, it has no value to investors and analysts.”
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...