We extend the EBIT-based dynamic capital structure model proposed by Goldstein, Ju and Leland (2001) to finite-maturity debt and multiple bond issues. The complete tax structure of Goldstein, Ju and Leland (2001) is maintained. In our setting, the usually available market data can be used for...

This book is the first comprehensive treatment of structural credit risk models for the simultaneous and consistent pricing of corporate securities. Through the development of a flexible economic framework based on the firm's EBIT, the reader is taken from the economic principles of firm value...