Advanced Search
MyIDEAS: Login

Options de croissance, coût du capital et valeur des investissements

Contents:

Author Info

  • Jean-Claude GABILLON
Registered author(s):

    Abstract

    In a model where firms have important growth options we show that weighted average cost of capital is not an appropriate discount rate for valuing investment projects. Growth options have a different risk level than assets in place. If the new assets have the same risk as assets in place then the value of the new assets is not equal to the total cash-flow discounted with the cost of capital. Moreover, in the case of an unlevered firm, despite background risk with constant conditionals moments, the conditionals expectation and volatility of equity returns are stochastic time series.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.jstor.org/stable/27917392
    Download Restriction: no

    Bibliographic Info

    Article provided by ENSAE in its journal Annals of Economics and Statistics.

    Volume (Year): (2009)
    Issue (Month): 93-94 ()
    Pages: 279-299

    as in new window
    Handle: RePEc:adr:anecst:y:2009:i:93-94:p:12

    Contact details of provider:
    Postal: 3, avenue Pierre Larousse, 92245 Malakoff Cedex
    Phone: 01.41.17.51.55
    Email:
    Web page: http://annales.ensae.fr/
    More information through EDIRC

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2009:i:93-94:p:12

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Gary-Bobo).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.