Explain the purposes of equity valuation

Reference no: EM131487808

Question: 1. Explain why, for purposes of equity valuation, earnings growth forecasts must be for cum-dividend earnings growth, yet neither cum-dividend growth rates nor valuation are affected by expected dividend.

2. Abnormal earnings growth is always equal to growth of (change in) residual earnings. Correct?

Reference no: EM131487808

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