Scott F. Richard

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The sample of observed defaults significantly understates the average firm's true expected cost of default due to a sample selection bias. To quantify this selection bias, I use a dynamic capital structure model to estimate firm-specific expected default costs. The average firm expects to lose 45% of firm value in default, a cost higher than existing(More)
When purchasing a security an investor needs not only have in mind the cash ‡ows that the security will pay into the inde…nite future, he/she must also anticipate his/her desire and ability to resell the security in the marketplace at a later point in time. In this paper, we show that the endogenous stochastic process of the liquidity of securities is as(More)
This paper develops and analyzes a dynamic model of leverage, taking account of tax deductibility of interest payments and the endogenous expected cost of default. The interest rate on debt includes a premium to compensate lenders for expected losses in default. Lenders are unwilling to lend an amount that would trigger immediate default, which places a(More)
Selection of appropriate chemotherapy, including identification of platinum resistance, is critical to effective management of advanced epithelial ovarian cancer (EOC). ChemoFx®, a multiple treatment marker (chemoresponse assay), has been developed to address this challenge and to improve outcomes in patients with advanced EOC. While much work has been done(More)
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