Appendix

Table A.1 ModelWare valuation: definition of key measures1

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Table A.2 ModelWare intrinsic value's approach to selected adjustments

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Table A.3 Residual income model: questions and answers

Many people, when first seeing a residual income model, question why this model is any better than other valuation models. Questions that we hear include:
Book value and earnings are distorted by accounting measurement problems, being based on a mix of historical costs and market or fair values, ...

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