‘Is Residual Income Model (RIM) REALLY Superior to Dividend Discount Model (DDM)?’ – A Misconception

An Application of Discounted Residual Income for Capital Assets Pricing by Method Curve Fitting with Sinusoidal Functions

The basic model for valuation of firm is the Dividend Discount Model (DDM). When investors buy stocks, they expect to receive two types of cash flow: dividend in the period during which the stock is owned, and the expected sales price at the end of the period. In the extreme example, the investor keeps the stock until the company is liquidated; in such a case, the liquidating dividend becomes t...

Is Residual Income Really Uninformative About Stock Returns ?

Prior research found that Residual Income (RI) is, at best, minimally informative about stock returns relative to Earnings, despite strong support for RI in theory and among practitioners. We examine three possible explanations for this puzzle. First, the empirical literature ignores some salient feature of practice or theory. Second, the market does not fully impound all of the information fro...

DDM FOR AN EXTRUSION MODEL 7272 Model

an application of discounted residual income for capital assets pricing by method curve fitting with sinusoidal functions

the basic model for valuation of firm is the dividend discount model (ddm). when investors buy stocks, they expect to receive two types of cash flow: dividend in the period during which the stock is owned, and the expected sales price at the end of the period. in the extreme example, the investor keeps the stock until the company is liquidated; in such a case, the liquidating dividend becomes t...

DDM FOR CONTROL PROBLEMS 2672 The Model