For multistage residual income valuation and an ROE that declines to a long-run level, it seems that the CFAI and Schweser notes are giving inconsistent formulas. As seen in equation 8, CFAI has the formula as (Pt - Bt) / (1 + r) but Schweser has it as (Pt - Bt) + Rt / (1 + r). Can someone please help clarify the correct one or explain what I am misunderstanding? Thank you!
Pt = market price at time t
Bt = book value per share at time t
Rt = residual income at time t
r = RoR