Schweser. Pg 212. Multistage residual income model.
In this example, the residual income after year 5 is going to be 0 (or other different assumptions in part 2 and 3 of the question).
Therefore, shouldn’t the terminal value calculation be that of year 5?
I even cross checked other multistage valuation (ddm et al) and found that TV calculation is always of the last year in the penultimate stage.
What exactly am I missing here?