deletions | additions       diff --git a/section_textit_DDM_textit_RIM__.tex b/section_textit_DDM_textit_RIM__.tex  index f072881..1893a41 100644  --- a/section_textit_DDM_textit_RIM__.tex  +++ b/section_textit_DDM_textit_RIM__.tex 
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\end{equation}  Using similar mathematical simplification tools than the ones used in the Gordon Growth Model, we can simplify   \begin{equation}  P_{t}=B_{t}+\frac{1}{(1+R-\omega})A_{t+1} P_{t}=B_{t}+\frac{1}{(1+R-\omega)}A_{t+1}  \end{equation}  \begin{equation}  P_{t}=B_{t}+\frac{1}{(1+R-\omega)}(E_{t+1}-RB_{t}) 
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growth while the \textit{RIM} shows that the market value of equities is a trade-off between the  discount rate and the persistence rate. There is, thus, a close relationship between growth  and persistence of abnormal earnings. This is very intuitive since future abnormal earnings  drive investment which in turn drives growth in dividends. dividends.Finally, the term $(ROE_{t+1}-R)$ reflects the ability for the firm to create value. Is a firm is able to create value, its \textit{PB} will be above 1.  \\  \\  As a conclusion to this section, hereafter are the important ideas we wish to highlight before moving on to the cash-flow approach :