Pascal edited section_textit_DDM_textit_RIM__.tex  almost 8 years ago

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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.  \\  \\  As a conclusion to this section, hereafter are the important ideas we wish to highlight before moving on to the cash-flow approach :  $EV_{t}=\displaystyle\sum_{i=t+1}^{t+K}\frac{FCFF_i}{(1+R)^i}+EV_{t+K}$