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Explain the theory behind the residual income valuation approach. Discuss why residual income value is relevant to common equity shareholders and explain the two roles

Explain the theory behind the residual income valuation approach. Discuss why residual income value is relevant to common equity shareholders and explain the two roles of book value of common shareholders equity in the residual income valuation approach.

PLEASE DO NOT USE ANY DATA THAT HAS ALREADY BEEN SUBMITTED FOR THIS QUESTION PREVIOUSLY. ONLY NEW & ORIGINAL WORK. THANK YOU!

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