American Journal of Economics, Finance and Management
Articles Information
American Journal of Economics, Finance and Management, Vol.1, No.5, Oct. 2015, Pub. Date: Jun. 16, 2015
The Analysis of the Influence of Debt Financing on the Efficiency of Investment Projects in the Perpetuity (Modigliani–Miller) Approximation
Pages: 346-361 Views: 2586 Downloads: 977
Authors
[01] P. N. Brusov, Applied Mathematics Department, Financial University under the Government of Russian Federation, Moscow, Russia.
[02] T. V. Filatova, Dean of GMM Faculty, Financial University under the Government of Russian Federation, Moscow, Russia.
[03] N. P. Orekhova, Investment and Taxation Laboratory, Research Consortium of Universities of the South of Russia, Rostov-on-Don, Russia; High School of Business, Southern Federal University, Rostov-on-Don, Russia.
[04] I. K. Shevchenko, Research and Innovation Projects, Southern Federal University, Rostov-on-Don, Russia.
[05] A. Y. Arkhipov, High School of Business, Southern Federal University, Rostov-on-Don, Russia.
[06] V. L. Kulik, Management Department, Financial University under the Government of Russian Federation, Moscow, Russia.
Abstract
The analysis of effectiveness of investment projects within the perpetuity (Modigliani–Miller) approximation (Modigliani et al 1958, 1963, 1966) has been done. Based on the obtained in previous papers results for NPV (Brusov et al 2011a, b, c, d, e; 2012 a, b; 2013 a, b, c; 2014 a, b; Filatova et al 2008) we analyze the effectiveness of investment projects for three cases.
Keywords
Debt Financing, Long-Term Investment Projects, Effectiveness Of Investment Project, Brusov-Filatova-Orekhova (BFO Theory)
References
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