Cross-Market Valuation with Full Information on the Company’s Capital Structure

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DOI: 10.4236/jmf.2013.33A007    4,557 Downloads   6,741 Views  

ABSTRACT

Most models for forecasting a company’s value either use only information from single markets or compress information from other markets. We propose a model using a company’s full capital structure including the term structure and type of outstanding debt to assess its future value. We discuss the numerical properties of our model and demonstrate its usefulness when estimating the probability of default as a valuation example.

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P. Heider and P. Posch, "Cross-Market Valuation with Full Information on the Company’s Capital Structure," Journal of Mathematical Finance, Vol. 3 No. 3A, 2013, pp. 69-75. doi: 10.4236/jmf.2013.33A007.

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