Which of the following statements regarding residual income valuation models is incorrect?

a$)$ We can forecast per$-$share residual income as forecasted earnings per share minus the required rate

of return on equity multiplied by beginning book value per share.

b$)$ In the residual income model, the intrinsic value of a share of common stock is the sum of book

value per share and the present value of expected future per$-$share residual income.

c$)$ Residual income model is an example of relative valuation model.

d$)$ Residual income is calculated as net income minus a deduction for the cost of equity capital or

equity charge.