Residual Income formulas

[gazhoo]

there are many different formulas to calculate Residual Income. Is there any easy way to remember when to use which one?

B₀ + S(Et - rBt)/(1+r)t +P_T - B_T/(1+r)^T

Sum(D_t)/(1+r)^t +P_T/(1+r)^T

V_{0 =} B₀ + B₀(ROE - r)/(r - g) V_{0 =} B₀ + S(E_t - rB_t-1)/(1+r)^t + (E_T - rB_T-1)/(1+r-w)^T-1

[pdx914]

@gazhoo

there are many different formulas to calculate Residual Income. Is there any easy way to remember when to use which one?

B₀ + S(Et - rBt)/(1+r)t +P_T - B_T/(1+r)^T

Sum(D_t)/(1+r)^t +P_T/(1+r)^T

V_{0 =} B₀ + B₀(ROE - r)/(r - g) V_{0 =} B₀ + S(E_t - rB_t-1)/(1+r)^t + (E_T - rB_T-1)/(1+r-w)^T-1

+1

[gazhoo]

thanks but could you elaborate a little?

[pdx914]

I wish plus one was an answer, and one I could remember.