Gianfreda, Angelica; Sbuelz, Alessandro - Dipartimento di Scienze Economiche, Facoltà di Economia - 2008
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...