On the debt capacity of growth and decay options

N. Letifi and Jean-Luc Prigent

No 2014-391, Working Papers from Department of Research, Ipag Business School

Abstract: This paper focuses on the impact of debt on the optimal policy for investment and hiring, in the light of the theory of real options. We consider a stochastic demand for the product sold by the company. We examine in particular the investment

Keywords: corporate investment; ring and hiring; stochastic demand; barrier options; real options. (search for similar items in EconPapers)
JEL-codes: D92 G31 G32 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2014-01-01
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Citations: View citations in EconPapers (5)

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