deletions | additions       diff --git a/section_textit_DDM_textit_RIM__.tex b/section_textit_DDM_textit_RIM__.tex  index e9cdee0..8f3497d 100644  --- a/section_textit_DDM_textit_RIM__.tex  +++ b/section_textit_DDM_textit_RIM__.tex 
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\begin{equation}  P_{t}=\frac{\rho E_{t+1}}{R-g}  \end{equation}  By dividing both terms of the equation by the book value $B_{t}$ we get :  \begin{equation}  \frac{P_{t}}{B_{t}}=\frac{\rho ROE_{t+1}}{R-g}  \end{equation}  Where $\rho$ is the payout ratio. $\rho ROE_{t+1}$ can be replaced by $ROE_{t+1}-g$ where $g$ is the perpetual growth rate in dividends.  The \textit{GGM}  shows that the market value of equities is a trade-off between the discount rate and future  growth while the \textit{RIM} shows that the market value of equities is a trade-off between the