deletions | additions       diff --git a/section_textit_DDM_textit_RIM__.tex b/section_textit_DDM_textit_RIM__.tex  index f769cb3..ecdc364 100644  --- a/section_textit_DDM_textit_RIM__.tex  +++ b/section_textit_DDM_textit_RIM__.tex 
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P_{t}=B_{t}+\displaystyle\sum_{i=1}^{K}\frac{A_{t+i}}{(1+R)^i}-\frac{B_{t+K}}{(1+R)^K}+\frac{P_{t+K}}{(1+R)^K}  \end{equation}  where $P_{t}$ is the stocks price at $t$, $B_{t}$ is the book value at $t$, $A_{t+i}$ the future abnormal earnings  in $t+i$, $R$ the discount rate and rate,  $P_{t+K}$ and $B_{t+K}$  the terminal value. market value and book value of equity in $t+K$ respectively.  It is now obvious that a market value of equity superior to its book value necessarely implies that the company generates abnormal earnings i.e. that its\textit{ROE} is above the shareholder expected return (Cost Of Equity).  Abnormal earnings are the ability of the company to generate more earnings than what  investors are asking for. Under General Equilibrium Theory assumptions, abnormal earnings