Excerpt from Linear Programming for Financial Planning Under Uncertainty
The paper was greatly improved by comments of my colleagues at the Sloan School, particularly G. A, Pogue, with whom I am working on models for practical application.
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"Sinopsis" puede pertenecer a otra edición de este libro.
Excerpt from Linear Programming for Financial Planning Under Uncertainty
The paper was greatly improved by comments of my colleagues at the Sloan School, particularly G. A, Pogue, with whom I am working on models for practical application.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
Excerpt from Linear Programming for Financial Planning Under Uncertainty
2. The models yield simultaneous solutions for the firm's optimal financing and investment decisions. The financing decision is not considered "with the investment decision given," nor vice-versa.
3. Some practical difficulties associated with the cost of capital concept are avoided. The traditional weighted average cost of capital does not appear in these LP models.
The first two characteristics should lead to some interest in the mosels as theory; the third, along with the ease of solution of LP problems, should generate interest in the models as practical decision-making tools. However, this paper does not include a detailed model for practical application.
The paper is organized as follows. The general linear format is explained in the next section. The key assumption justifying it is that the structure of security prices at equilibrium is best described by the class of security valuation models which imply risk-independence of financing and investment options. The following section examines a simple model in detail, and contrasts the LP approach with "traditional" approaches using the cost of capital. Practical implications of the model are discussed in the third section.
We will consider the firm's financial planning problem in the following terms.
About the Publisher
Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com
This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
"Sobre este título" puede pertenecer a otra edición de este libro.
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Paperback. Condición: New. Print on Demand. This book provides a novel approach to corporate financial planning under uncertainty by introducing linear programming (LP) models that offer practical solutions for optimal financing and investment decisions. The models presented in this book can simultaneously consider multiple investment and financing options faced by a firm, taking into account the risk characteristics of each. The inclusion of risk factors in the LP approach distinguishes this book from traditional methods that typically rely on calculating a weighted average cost of capital. By avoiding the use of a weighted average cost of capital, which has limitations in dealing with risk and debt capacity, the LP models provide a more accurate evaluation of investment opportunities and financing strategies. This book extends the theory of market equilibrium under uncertainty to address the specific challenges of financial planning. The author demonstrates how the LP models can help decision-makers navigate uncertainty and optimize shareholder value by choosing the right combination of real and financial assets, and debt and equity financing. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. Nº de ref. del artículo: 9781330143803_0
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