Question B1 a) State the abnormal earnings growth (AEG) valuation formula and show that residual earnings (RE) valuation is consistent with it. b) State the abnormal operating income growth (AOIG) valuation formula and show that residual operating income (ReOl) valuation is consistent with it.

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Question B1
a) State the abnormal earnings growth (AEG) valuation formula and show that residual earnings
(RE) valuation is consistent with it.
b) State the abnormal operating income growth (AOIG) valuation formula and show that residual
operating income (ReOI) valuation is consistent with it.
Transcribed Image Text:Question B1 a) State the abnormal earnings growth (AEG) valuation formula and show that residual earnings (RE) valuation is consistent with it. b) State the abnormal operating income growth (AOIG) valuation formula and show that residual operating income (ReOI) valuation is consistent with it.
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