Does anyone Know the expressions for Terminal Values associated with the 4 assumptions In the multi stage Residual income model? I’m So Confused looking back and forth from CFAi text and Schweser, for instance the first equation in CFAI on p. 382 in equity which assumption does it go with? I thought it was the ferst assumption but that goes on indefinitely while the equation is for a finite horizon … please someone help
I did not memorize the numbers. Just 4 different scenarios for continuing RI (0, 1, in between, industry average). The formula applies to first 3 and the last one involves using a projected PE ratio