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In your own words, explain the theory behind the residual income valuation approach. Discuss why...

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Accounting

In your own words, explain the theory behind the residual income valuation approach. Discuss why residual income value is relevant to common equity shareholders and explain the two roles of book value of common shareholders equity in the residual income valuation approach. In replies to peers, discuss whether you agree or disagree with their explanation of the theory and the role of book value of common shareholders equity

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