Tax Convexity , Investment , and Capital Structure

  title={Tax Convexity , Investment , and Capital Structure},
  author={W KitPong},
  • W KitPong
  • Published 2010
This paper examines the interaction between investment and financing decisions of a firm using a real options approach. The firm is endowed with a perpetual option to invest in a project at any time by incurring an irreversible investment cost at that instant. The amount of the irreversible investment cost is directly related to the intensity of investment… CONTINUE READING

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