cnc7_residual income valuation (noted)
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Amos LimP0 of common stock = BV0 + PV(E(RI))Price = Book Value at T0 + PV of Expected RI
RI = [Investment Return (ROE) - Cost of Raising Capital (Ks)] * (BV0)
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Amos LimUseful summary slide on the 3 broad approaches to DCF valuation
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