this is for holding javascript data
Pascal PIERRE edited section_textit_DDM_textit_RIM__.tex
about 6 years ago
Commit id: 8f0dbacc2304460abb062de645bbd86c4cd3977b
deletions | additions
diff --git a/section_textit_DDM_textit_RIM__.tex b/section_textit_DDM_textit_RIM__.tex
index eee7cf8..bc223bb 100644
--- a/section_textit_DDM_textit_RIM__.tex
+++ b/section_textit_DDM_textit_RIM__.tex
...
\begin{equation}
P_{t}=\displaystyle\sum_{i=1}^{\infty}\frac{D_{t+i}}{(1+R)^i}\approx\frac{D_{t+1}}{R-g}
\end{equation}
where $g$ is the expected constant dividend growth rate to
perpetuity.This perpetuity.If we isolate future returns $R$, we get:
\begin{equation}
R=frac{D_{t+1}}{P_{t}}+g
\end{equation}
This equation highlights the fact that future returns are driven by the current valuation and future growth.
\\
\\
Although the \textit{DDM} is theoretically correct, it carries some well known caveats. One in