Pascal PIERRE edited section_textit_DDM_textit_RIM__.tex  about 6 years ago

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\end{equation}  where $g$ is the expected constant dividend growth rate to perpetuity.If we isolate future returns $R$, we get:  \begin{equation}  R=frac{D_{t+1}}{P_{t}}+g 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.  \\