Gomes Neto, João Batista F. (contributor); … - 2002 - [Elektronische Ressource]
firm decides to use debt financing, B, and let the function R denote
the future repayment costs of this debt.
8
If …
t
/∂K
t
= −C
1
(·); ∂X
t
/∂K
t+1
= −C
2
(·).
While the proof for the case of debt financing requires a fairly elaborate …