Erschienen in:CESifo Working Paper Series ; No. 3042
Umfang:
1 Online-Ressource (14 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1601189
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 2010 erstellt
Beschreibung:
Turnovsky (1995) derives in a continuous-time model of a decentralized economy that the correct specification of the firm's objective function is to maximize the initial value of its outstanding securities. The firm value is the discounted flow of real earnings. For the discrete-time version of the model, we show that the correct computation of the firm value needs to be modified. Depending on the specific formula employed, different values of the equity premium result