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In both the DCF and residual income valuation models, we subtracted the value of contingent claims to arrive at the correct value of the common
In both the DCF and residual income valuation models, we subtracted the value of contingent claims to arrive at the correct value of the common equity. Define what a contingent claim is, and why the amount must be subtracted to arrive at the correct value of the common equity. Be brief! (10 points)
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