We examine the conventional method of solving general annuity problems whereby a general annuity is converted into a simple annuity by imputing either an equivalent interest rate per the annuity's payment period or an equivalent payment per its conversion period. Both methods err when the...

Invoking them without modeling them is a cop-out (Myers 1984, p. 578).Myers is here referring to the theory that large capital adjustment costs might explain the observed wide variation in actual debt ratios. We can similarly criticize the static trade-off theory of capital structure as...

This paper demonstrates a simple way of deriving both the Capital Asset Pricing Model (CAPM) and a capital asset's beta value from the Capital Market Line (CML). The CML model is extended to include a series of isocorrelation curves along which the returns of any portfolio can be plotted...

This paper examines the nature and implementation of corporate responsibility (CR). It proposes that stakeholder engagement is a more complex process than is sometimes portrayed, but nevertheless provides a necessary and effective means of implementing CR

Determining the yield to maturity of a coupon bond with more than four coupon periods is a two-step process. The first step uses an approximation formula to obtain a first approximation of the true yield. The second step uses an algorithm to advance the first approximation closer to the bond's...

Asynchronous annuities are defined as those in which the frequency of cash flows differs from the frequency of interest compounding. The conventional approach to calculating the present and future values of such annuities is to impute a rate of interest (or return) to a cash flow period, which...