Because of the uncertainty about how to model the growth process of our economy, there is still much confusion about … assuming that the random walk of economic growth is affected by some parametric uncertainty. We show that the same arguments … proposed in the literature to justify a decreasing term structure for the safe discount rate also apply to justify an …

literature in mathematical finance concerning optimal portfolio allocation and stopping rules? The uncertainty concerns the … capital gain, the return on capital and the interest rate. An optimal debt ratio is derived where the drift is probabilistic … asset. The vulnerability of the borrowing firm to shocks from the capital gain, the return to capital or the interest rate …

present value of future gross return, discounted at an appropriate interest rate less investment cost. An investment project …

investment cost multiplied by real interest rate) for the entire borrowing years but also the total amount of initial investment … optimum debt maturity tends to correlate positively with the corporate tax rate but negatively with the interest rate. In the … case of prevailing inflation, there is a mismatch between the nominal interest rate that is a discounting factor for all …

This paper deals with the effects of tax rate uncertainty on risk-neutral and risk-averse investment behavior. We … as under risk aversion, increased tax rate uncertainty has an ambiguous impact on investment behavior, depending on the … tax rate uncertainty. …

: i) subsidiaries’ leverage increases with the statutory tax rate, levied in the country where it operates; ii) this … positive effect is lower, the higher the parent company tax rate is. Furthermore, an increase in the parent company’s tax rate …