Pascal PIERRE edited section_textit_DDM_textit_RIM__.tex  almost 8 years ago

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\begin{equation}  P_{t}=B_{t}+\displaystyle\sum_{i=1}^{K}\frac{A_{t+i}}{(1+R)^i}  \end{equation}  Using similar mathematical simplification tools than the ones used in the Gordon Growth Model, we can simplify Eq. 5 :  \begin{equation}  P_{t}=B_{t}+\frac{1}{(1+R-\omega)}A_{t+1}  \end{equation}