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Papers by Margherita Cigola
Metodi matematici per la teoria dell'evoluzione, 2018
The use of general descriptive names, registered names, trademarks, service marks, etc. in this p... more The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
SSRN Electronic Journal, 2003
ABSTRACT This paper analyzes the relationships between leverage and value in presence of growth. ... more ABSTRACT This paper analyzes the relationships between leverage and value in presence of growth. In the first part we develop a valuation model for the growing firm, adopting the Adjusted Present Value approach (from the equity side), under the assumption of certainty. In the second part, we consider an assets side analysis, equivalent to the APV approach. We find that such analysis cannot be based on the WACC, in the standard formulation, because, in order to obtain directly the equity value, we must adjust k via a factor which turns out to depend not only on l and t, but also on r,g and on k itself. Then we analyse the relationship between reinvestments and growth, via the return on equity link: in order to create value the return on investment (r), reduced by the cost of debt (lk) and the taxation (1-t), should exceed the opportunity cost of capital (k). Since reinvestment has a positive effect on future dividends , but has a negative effect on current dividends which are reduced by the reinvestment of profits, and since firm value depends on all the dividends, the effect of leverage on value is far from being predictable. We demonstrate that three different cases can occur and that an optimum leverage exists: this finding has great policy implications, stating how the creation of value depends on the firm financing decisions.
European Journal of Operational Research, 2005
... European Journal of Operational Research Volume 161, Issue 2, 1 March 2005, Pages 377-385 Fin... more ... European Journal of Operational Research Volume 161, Issue 2, 1 March 2005, Pages 377-385 Financial Modelling. doi:10.1016/j.ejor.2003.08.049 | How to Cite or Link Using DOI Copyright © 2003 Elsevier BV ... i>j. Giving a glance to the last column of Table 3 we note that all of ...
The SSB functional is interpreted as the difference between two probabilities. This interpretatio... more The SSB functional is interpreted as the difference between two probabilities. This interpretation allows one to represent preference relationships with no use of a utility function and agrees with a recent interpretation of expected utility advanced by Castagnoli and Li Calzi.
Metodi matematici per la teoria dell'evoluzione, 2018
Rivista Di Matematica Per Le Scienze Economiche E Sociali, 1992
ABSTRACT Riassunto Come noto, una funzione continua e strettamente monotona individua una media a... more ABSTRACT Riassunto Come noto, una funzione continua e strettamente monotona individua una media associativa di una variabile aleatoria (v.a.)X.
Lecture Notes in Economics and Mathematical Systems, 1994
Metodi matematici per la teoria dell'evoluzione, 2018
The use of general descriptive names, registered names, trademarks, service marks, etc. in this p... more The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
SSRN Electronic Journal, 2003
ABSTRACT This paper analyzes the relationships between leverage and value in presence of growth. ... more ABSTRACT This paper analyzes the relationships between leverage and value in presence of growth. In the first part we develop a valuation model for the growing firm, adopting the Adjusted Present Value approach (from the equity side), under the assumption of certainty. In the second part, we consider an assets side analysis, equivalent to the APV approach. We find that such analysis cannot be based on the WACC, in the standard formulation, because, in order to obtain directly the equity value, we must adjust k via a factor which turns out to depend not only on l and t, but also on r,g and on k itself. Then we analyse the relationship between reinvestments and growth, via the return on equity link: in order to create value the return on investment (r), reduced by the cost of debt (lk) and the taxation (1-t), should exceed the opportunity cost of capital (k). Since reinvestment has a positive effect on future dividends , but has a negative effect on current dividends which are reduced by the reinvestment of profits, and since firm value depends on all the dividends, the effect of leverage on value is far from being predictable. We demonstrate that three different cases can occur and that an optimum leverage exists: this finding has great policy implications, stating how the creation of value depends on the firm financing decisions.
European Journal of Operational Research, 2005
... European Journal of Operational Research Volume 161, Issue 2, 1 March 2005, Pages 377-385 Fin... more ... European Journal of Operational Research Volume 161, Issue 2, 1 March 2005, Pages 377-385 Financial Modelling. doi:10.1016/j.ejor.2003.08.049 | How to Cite or Link Using DOI Copyright © 2003 Elsevier BV ... i>j. Giving a glance to the last column of Table 3 we note that all of ...
The SSB functional is interpreted as the difference between two probabilities. This interpretatio... more The SSB functional is interpreted as the difference between two probabilities. This interpretation allows one to represent preference relationships with no use of a utility function and agrees with a recent interpretation of expected utility advanced by Castagnoli and Li Calzi.
Metodi matematici per la teoria dell'evoluzione, 2018
Rivista Di Matematica Per Le Scienze Economiche E Sociali, 1992
ABSTRACT Riassunto Come noto, una funzione continua e strettamente monotona individua una media a... more ABSTRACT Riassunto Come noto, una funzione continua e strettamente monotona individua una media associativa di una variabile aleatoria (v.a.)X.
Lecture Notes in Economics and Mathematical Systems, 1994