When a stock is going through a period of nonconstant growth for T periods, followed by constant growth forever, the residual income model can be modified as follows:

P0	=	T	EPSt + Bt -1 - Bt	+	PT
		?
		t = 1	(1 + k)t		(1 + k)T

where

PT

=

BT

+

EPST (1 + g)