This article extends the framework of Merton (1974) with Vassalou and Xing (2004) to value a troubled but solvent bank's equity by explicitly incorporating distressed assets purchased by the government in an imperfectly competitive loan market. We show that the bank may be willing to take this...

The article models the borrowing producers in a production supply chain with insurer green finance. The borrowing firms’ transacting carbon allowances (CA) under the cap-and-trade mechanism affect the insurer’s loan rate-setting and guaranteed rate-setting decisions. One result shows that a...

Point estimation of the common mean of several normal distributions with unknown and possibly unequal variances has attracted the attention of many researchers over the last five decades. Relatively less attention has been paid to the hypothesis testing problem, presumably due to the complicated...