Pavlov, Andrey; Poutziouris, Panikkos; Soufani, Khaled - In: Journal of Entrepreneurial Finance, JEF 9 (2004) 1, pp. 73-97
The choice of financing source is particularly difficult for a small firm due to the high uncertainty about future liquidity requirements. We show that the techniques of continuous time arbitrage and stochastic control theory may be used not only to value such firms but also to determine the...
