The central variables of this paper are value, net income (wealth creation), book values (wealth accumulated), and dividends (wealth distribution). This paper provides a conceptually useful foundation for the study of net income, book values, and dividends as to how these variables relate to equity value. The discussion makes the case that the analysis is also of empirical interest. This paper systemized overview of the Ohlson 1995(O95) literatures. The paper considers situations in which price equal capitalized forward net income add growth in net income and book values. Accounting, or the financial reporting model, has its own rules, and these make their presence felt all the time. The CSR has a role to interlock the book values and net income. Book values differ from net income because the latter need a capitalization factor to be of the same order of scale as book values. Dividends decrease market value on a dollar-for-dollar basis as dividends (A) decrease book value similarly on a dollar-for-dollar basis but (B) do not affect the expected residual income series. This paper shows further that the value replacement property tangles closely with the idea that dividends decrease subsequent periods’ expected earnings. That is, the more the dividends today pay out; the less the book values accumulate today. The less the book values accumulate today; the less the future net income will come tomorrow. Finally, this paper studies two simple ideas. First, one can use residual income valuation model to predict stock value. Second, mathematical zero-sum series equality provides the analytical starting point and ensures analytical simplicity. These two ideas combine to yield many closed- form valuation models. Without violating the PVED precept, one obtains explicit and basic models relating market value to book value and income.