Year
1993
Authors
PONCET Patrice, PORTAIT Roland
Abstract
Standard Modigliani-Miller cost-of-capital formulae are reconsidered in the case where the future level of the firm’s debt is stochastic, and the firm’s cash-flows follow any arbitrary diffusion process.
PONCET, P. et PORTAIT, R. (1993). Cost-of-capital Relationships under Debt Level Uncertainty : The Case of Stochastic Continuous Cash-flows and a Fixed Leverage Ratio. ESSEC Business School.