In Many Cases,using the Residual Income Valuation Model Will Result

question 12

Essay

In many cases,using the residual income valuation model will result in a different value than either the dividend discount model and the free cash flow valuation methods.What are some reasons that the three valuation models would result in inconsistent valuations?

---

Definitions:

Public Office

Positions held within the government by elected or appointed officials who are responsible for serving and managing public resources and interests.

President Clinton

The 42nd President of the United States, William Jefferson Clinton, who served from 1993 to 2001, associated with numerous policies on economy, health, and international relations.

Signing Statement

A written pronouncement issued by the President of the United States upon signing a bill into law, which may outline his interpretation of the legislation or how it should be enforced.

Executive Order

A directive from the U.S. President that has the power of federal law, typically used to direct government operations and decision-making.