deletions | additions       diff --git a/section_textit_DDM_textit_RIM__.tex b/section_textit_DDM_textit_RIM__.tex  index ba05c46..4aa7e7a 100644  --- a/section_textit_DDM_textit_RIM__.tex  +++ b/section_textit_DDM_textit_RIM__.tex 
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Income Model (RIM hereafter) makes this possible.  \subsection{Linking the \textit{RIM} with the \textit{DDM}}  The RIM developed by Ohlson and Felthman (1995) assumes an accounting identity, the  clean surplus rule1 rule  , which states that the change in book value is equal to the difference between earnings and dividends $B_{t}-B_{t-1}=E_{t}-D_{t}$.Earnings $B_{t}-B_{t-1}=E_{t}-D_{t}$. Earnings  that are not distributed to investors are reinvested in the company. It then appears obvious that if a company’s  economic profitability is better than what shareholders expect, the company has an incentive  to reinvest profits in order to generate even bigger future earnings and dividends. Residual  income, or abnormal earnings, is constructed as the di.erence difference  between accounting earnings and the previous-period book value mutliplied by the cost of equity (i.e. the cost of equity  being what investors expect as future returns) $A_{t}=E_{t}-RB_{t-1}$. Using these accounting  identities allows us to rewrite dividends as $D_{t}=B_{t-1}(1+R)-B_{t}+A_{t}$. Replacing $D_{t}$ with