We propose a method to estimate the cost of debt in a continuous-time framework with an infinite time horizon. The approach builds on the class of well-known earnings before interest and taxes (EBIT)-based models. It extends other approaches based on option-pricing theory with a finite...

Previous studies refer to individual investors as "dumb noise traders." We question this undifferentiated verdict by conducting an analysis of the cognitive competence of individual investors as assessed by experts. We let experts (researchers as well as experienced practitioners) assess the...