18. Residual Income Model (LO3, CFA9) The residual income model separates the value of the firm into

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18. Residual Income Model (LO3, CFA9) The residual income model separates the value of the firm into two basic components. What are these two components?

a. The current book value and the present value of future earnings

b. The value of earnings per share and the value of cash flow per share

c. The current value of the firm’s shares and the future value of its shares

d. The time value of money and the value of bearing risk

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Fundamentals Of Investments Valuation And Management

ISBN: 9781260013979

9th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Jul 24, 2024 07:03 AM

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18. Residual Income Model (LO3, CFA9) The residual income model separates the value of the firm into

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Fundamentals Of Investments Valuation And Management

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