Equity - Residual Income and Private Company Valuation Questions

CFA Level II Equities
#1

Hi

I was hoping that somebody could help me with these questions:

  1. I’m getting confused with which continuing residual income method to use in two stage RI model questions.Questions from both Schweser and CFAI are very ambiguous regarding this. They don’t specifically state which one to use. How can I easily notice this?

  2. In regards to the Private Company valuation reading, are we supposed to be able to calculate everything or only know how it is done. The LOS’s don’t state to Calculate but they use words like Distinguish. I’m talking about calculation of normalised income and etc.

Thank you in advance

#2

Can you post some example problems and state exactly where you get stuck?