This paper develops a theory of the firm's weighted average cost of capital (WACC) and the marginal tax rate with risky debt and potentially redundant depreciation and interest tax shields. The tax shields' risks, the firm's borrowing interest rate and its marginal tax rate are intertwined, and...

In this research we characterize optimal procurement and distribution policies of a commodity in a multiechelon supply chain. We consider a firm that procures and distributes a commodity from spot and forward markets under random fluctuating prices; the commodity is distributed downstream to a...