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employed to approximate the true value of a company. Although these techniques are based on similar theory, they may generate … different values and to contribute to the understanding of why these two valuation techniques, although similar in theory, may …
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Ohlson & Juettner-Naworth (2005) show, using a “scheme” developed in Ohlson 1998, 2000, that one can derive the residual income model from the discounted dividend model. However, their method involves the condition that an infinite sum (book value per share) divided by the infinite sum of...
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