ppt课件-babson college accounting7000（巴布森学院accounting7000）.pptVIP

AgendaFinancial Statement Analysis Objectives of financial statement analysis Ratios and valuation ROE decomposition Residual income valuation model Limitations of ratio analysis Objectives of Financial Reporting The answer lies in modern valuation theory which postulates that firm value can be expressed by the following equation: P = BV + PV(expected RI) where, P = stock price BV = book value of stockholder’s equity PV denotes present value RI = residual income This is the Residual Income Valuation Model. Residual income (RI) is defined as, RI = I - r * BV where I = reported n