I have been lagging on the residual model;
In a double stage valuation model I began addiing the retined earnings for each hight growth period to the begining book value.
This to get the next period expenditures on capital.
It was false I just had to apply the growth rate to the first period RI calculated.
I didn’t wan to put to much time on it, but seems to me implying the RI will grow at the grownth rate of earnings need some assumptions, no?
Thanks a lot for the help,