The Investment, Financing, and Valuation of the Corporation

Acceleration Principle after-tax analysis assumed assumption average book value C₁ capital budget cent Chapter Coeff coefficients considered corporate income tax corporation's cost correlation cost of capital current dividend debt debt-equity ratio decision definition dend depreciation discounted dividend expectation dividend rate dividend yield earnings instability Economics empirical equity financing expected value fall firm food sample fraction function future period given ih/k income per share increase independent variables interest rate investment and financing investment opportunities investment rate leverage of h leverage rate leverage variable machinery sample maximizes ment Modigliani-Miller theorem neoclassical theory obtained parameter estimates poration problem rate of growth rate of interest rate of profit rate of return receipt required rate return on investment rises risk variables share price standard deviation statistical stock price model Table theoretical tion uncertainty valuation variation in price variation in share vary vestment W₁ Y₁ zero