Risk adjustment, investment policy, and valuation for an unlevered firm

We characterize the optimal investment decision and the stock value of an unlevered firm that holds the non-standard option of improving the growth rate of cashflows from its assets in place upon incurring an irreversible cost. The firm's investment policy and equity price are studied as a function of the market price of risk, of cashflow's exposure to systematic risk, and of cashflow volatility.

MoreLess

Year of publication:	2008-10
Authors:	Gianfreda, Angelica ; Sbuelz, Alessandro
Institutions:	Dipartimento di Scienze Economiche, Facoltà di Economia
Subject:	Investment \| Equity pricing \| Market price of risk

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number 49/2008 1 pages long
Classification:	C6 - Mathematical Methods and Programming ; E2 - Consumption, Saving, Production, Employment, and Investment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011265759