Advanced Search
MyIDEAS: Login

Risk adjustment, investment policy, and valuation for an unlevered firm

Contents:

Author Info

  • Angelica Gianfreda

    ()

  • Alessandro Sbuelz

    () (Corresponding author, Dipartimento di Scienze economiche (Università di Verona))

Abstract

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 function of the market price of risk, of cashflow's exposure to systematic risk, and of cashflow volatility.

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://dse.univr.it/RePEc/ver/Wpaper/WP49.pdf
File Function: First version
Download Restriction: no

Bibliographic Info

Paper provided by University of Verona, Department of Economics in its series Working Papers with number 49.

as in new window
Length: 11
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:ver:wpaper:49

Contact details of provider:
Postal: Vicolo Campofiore, 2 - I-37129 Verona
Phone: +390458028097
Fax: +390458028486
Email:
Web page: http://www.dse.univr.it
More information through EDIRC

Related research

Keywords: Investment; Equity pricing; Market price of risk.;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

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:ver:wpaper:49

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael Reiter).

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.