Growth opportunities and investment decisions: A new perspective on the cost of capital

Journal of Business Finance and Accounting

Volumn 24, Issue 3-4, 1997, Pages 413-424

  Chung, Kee H ^a   Kim, Kyu H ^b  

^a UNIVERSITY OF MEMPHIS   (United States)

^b Chung Ang University   (South Korea)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 24344498380     PISSN: 0306686X     EISSN: 14685957     Source Type: Journal    
DOI: 10.1111/1468-5957.00112     Document Type: Article

References (18)

1. Baldwin, C., S. Mason and R. Ruback (1983), 'Evaluation of Government Subsidies Large Scale Energy Projects: A Contingent Claims Approach', Working Paper (Harvard Business School).
2. Brealey, R. and S. Myers (1988), Principles of Corporate Finance (McGraw-Hill, New York).
3. Brennan, M. and E. Schwartz (1985), 'Evaluating Natural Resource Investments', Journal of Business (April), pp. 135-157
4. Chung, K. (1990), 'Output Decision under Demand Uncertainty with Stochastic Production Function: A Contingent Claims Approach', Management Science (November), pp. 1311-1328
5. - and C. Charoenwong (1991), 'Investment Options, Assets in Place, and The Risk of Stocks', Financial Management (Autumn), pp. 21-33.
6. Copeland, T. and F. Weston (1988), Financial Theory and Corporate Policy (Addison-Wesley, Reading, Massachusetts).
7. Johnson, H. (1987), 'Options on the Maximum or the Minimum of Several Assets', Journal of Financial and Quantitative Analysis (September), pp. 277-283
8. Kester, C. (1984), 'Today's Options for Tomorrow's Growth', Harvard Business Review (March-April), pp. 153-160
9. - (1986), 'An Options Approach to Corporate Finance', in E. Altman (ed.), Handbook of Corporate Finance, 2nd ed. (Wiley, New York).
10. Majd, S. and R. Pindyck (1987), 'Time to Build, Option Value, and Investment Decisions', Journal of Financial Economics (March), pp. 7-27.
11. Mason, S. and R. Merton (1985), 'The Role of Contingent Claims Analysis in Corporate Finance', in E. Altman and M. Subrahmanyam (eds.), Recent Advances in Corporate Finance (Irwin, Homewood, Illinois).
12. McDonald, R. and D. Siegel (1985), 'Investment and the Valuation of Firms when There is an Option to Shut Down', International Economic Review (June), pp. 331-419
13. - (1986), 'The Value of Waiting to Invest', Quarterly Journal of Economics (November), pp. 707-727
14. Miller, M. and F. Modigliani (1961), 'Dividend Policy, Growth and the Valuation of Shares', Journal of Business (October), pp. 411-433
15. Myers, S. (1977), 'Determinants of Corporate Borrowing', Journal of Financial Economics (November), pp. 147-176
16. Pindyck, R. (1988), 'Irreversible Investment, Capacity Choice, and the Value of the Firm', American Economic Review (December), pp. 969-985
17. Smith, C. (1976), 'Option Pricing: A Review', Journal of Financial Economics (January-March), pp. 3-51.
18. Stulz, R. (1982), 'Options on The Minimum or The Maximum of Two Risky Assets', Journal of Financial Economics (July), PP- 161-185