Incentive Regulation of Prices when Costs are Sunk [PDF]
, 2006 We present a model featuring irreversible investment uncertain future demand and capital prices and a regulator who sets the firm's output price at discrete intervals.
Evans, Lewis, Guthrie, Graeme
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GENERALIZATION OF THE MODIGLIANI-MILLER THEORY: MYTH AND REALITY
Финансы: теория и практика, 2017 Starting from the contribution made by the Nobel laureates Merton Miller and Franco Modigliani, the issue of interdependences among the capital structure,the cost of capital and firm value and their implementation in the financial models for practical ...
R. G. Ibragimov, G. A. Panferov
doaj +1 more source
Caveat WACC: Pitfalls in the use of the weighted average cost of capital
Corporate Ownership and Control, 2009 In Discounted Cash Flow valuations, the WACC approach is very popular. Therefore, knowing which limitations the concept inherits is essential. The objective of this paper is thus twofold: First, it is clarified that a constant WACC rate must fail if the implied leverage ratio is time-varying. This seems to be the rationale for defining a nonlinear WACC
openaire +1 more source
Capital structure and the firm under uncertainty [PDF]
This paper examines the interplay between the real and financial decisions of the competitive firm `a la Sandmo. Besides output price uncertainty, the firm faces additional sources of risk which are aggregated into an additive background risk.
Broll, Udo, Wong, Kit Pong
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Penetapan Struktur Modal Yang Optimal Dalam Upaya Meningkatkan Nilai Perusahaan (Studi Pada PT. Astra International, Tbk Dan Anak Perusahaan Tahun 2008-2012) [PDF]
, 2014 The Research is intended to explain how the optimal capital structure can increase the value of the company and to explain about company\u27s policy determine company structure.
Wangsawinangun, R. Z. (Rizki)
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Idiosyncratic risk and the cost of capital - The case of electricity networks [PDF]
, 2014 We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities regularly ignore firm-specific characteristics, such as size or asset ages, implying different risk exposure in incentive regulation.
Schaeffler, Stephan +2 more
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The Cost of Capital Calculation in the Project Finance Settings
Journal of Banking and Financial EconomicsThe paper aims at elucidating and solving the methodological problems around the estimation of the cost of capital in the project finance settings. By convention, capital budgeting analysts evaluate project finance ventures using the free cash flow for ...
Paweł Mielcarz +2 more
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CONSTANT LEVERAGE AND CONSTANT COST OF CAPITAL: A COMMON KNOWLEDGE HALF-TRUTH [PDF]
A typical approach for valuing finite cash flows is to assume that leverage is constant (usually as target leverage) and the cost of equity, Ke and the Weighted Average Cost of Capital, WACC are also assumed to be constant.
IGNACIO VÉLEZ-PAREJA +2 more
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Household Leverage and the Deductibility of Home Mortgage Interest: Evidence from UK House Purchasers [PDF]
During the last quarter century, mortgage interest deductibility has been gradually phased out. In 1974 a ceiling was set on the size of the mortgage eligible for interest deductibility (œ30,000 since 1983) and, beginning in 1993, the maximum rate at ...
Dr. Gwilyn Pryce +2 more
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EU single financial market: Porspects of changes [PDF]
, 2012 The purpose of the paper is to provide some support to the thesis that insurance may reduce the cost of capital in a company by influencing both the cost of capital components and the need for rising capital.
Mikita, Malgorzata
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