General Solution of the Price-Dividend Integral Equation

This paper reports some new closed-form formulas of financial valuation for a deterministic firm with general financing policies and a time-dependent discount rate. A model of the firm is described which includes the price-dividend-balance integral equation whose solution yields the time path of share price, number of shares, and the value of the firm. The solution technique depends on deriving an equivalent system of differential equations. A broad class of firms for which the solution formulas are valid is characterized