Ashton, David; Cooke, Terry; Tippett, Mark - In: Journal of Business Finance & Accounting 30 (2003-04) 3-4, pp. 413-440
We state an Aggregation Theorem which shows that the recursion value of equity is functionally proportional to its adaptation value. Since the recursion value of equity is equal to its book value plus the expected present value of its abnormal earnings, it follows that the adaptation value of...