Shemetov, Valery V. - In: ACRN journal of finance and risk perspectives 9 (2020) 1, pp. 148-176
An extension of Merton’s (1974) model (EMM) taking account of the firm’s payments and generating a new statistical distribution for the firm value is suggested. In an open log-value space, this distribution evolves from the initially normal to negatively skewed one. When payments are zero or...