has anyone got an easy way to keep these related but differant concepts clear.
all have so far is the following
Residual income is called RI in Corp Fin but RI or econ profit in equity
They are calculated the same way except corp fin uses NI and equity uses EPS
they both calculate the equity chrge using the same rate r and both multiply this rate by open BV
Equity has a modified version that uses ROE-r to determine econ profit
Corp fin also has a modified version they call econ profit. Here you subtract your equity charge not from EPS or NI as done for RI but from NOPAT and you don’t use r but WACC as the multiplier against open BV