Email: [email protected] Abstract: Many researchers have assumed one stage trade credit financing. In this study, we considered two levels of trade credit policy using Discounted Cash Flow (DCF) approach. Demand rate is considered to be stock-dependent for the first level (credit demand) and constant for second level (cash demand). Mathematical models are derived under two differen...

This paper examines optimal portfolios with discounted stochastic cash inflows (SCI). The cash inflows are invested into a market that is characterized by inflation-linked bond, a stock and a cash account. It was assumed that inflationlinked bond, stock and the cash inflows are stochastic and follow a standard geometric Brownian motion. The variational form of Merton portfolio strategy was obta...

Are share markets too volatile? While it is difficult to ignore share market volatility it is important to determine whether volatility is excessive. This paper replicates the Shiller (1981) test as well as applying standard time series analysis to annual Australian stock market data for the period 1883 to 1999. While Shiller’s test suggests the possibility of excess volatility, time series ana...

Wind energy is created in mega-sized wind farms situated kilometers off shore. In fact, two possibilities are considered for the transmission system between the offshore wind farm and the onshore grid: high-voltage direct current and high-voltage alternating current. From this point of view, the current paper aims to compare both systems for a 2 GW wind farm situated 80 km from the Point of Com...

In this paper, an analogy between IT firm valuation and IS valuation is used to learn from how investment banking professionals cope with the renowned valuation problem. It becomes clear that theoretically sound approaches like the discounted cash flow might be inappropriate to determine the true value of a software company. Especially for IT valuation, real options approaches are a promising w...

Real option analysis has been studied and applied in evaluating information technology (IT) investments for more than a decade. Its advantages over the traditional discounted cash flow techniques have been widely recognized in the information systems (IS) community. However real option analysis has yet to be seen in valuing digital government projects where the real option analysis and option t...

Obtaining more accurate equity value estimates is the starting point for stock selection, value-based indexing in a noisy market, and beating benchmark indices through tactical style rotation. Unfortunately, discounted cash flow, method of comparables, and fundamental analysis typically yield discrepant valuation estimates. Moreover, the valuation estimates typically disagree with market price....