Debt Capacity and the Capital Budgeting Decision: A Caveat

1979 ◽  
Vol 8 (4) ◽  
pp. 55 ◽  
Author(s):  
James M. Gahlon ◽  
Roger D. Stover
Keyword(s):  
Capital Budgeting ◽  
Debt Capacity

Corporate Debt Capacity and Capital Budgeting Analysis

1982 ◽  
Vol 11 (2) ◽  
pp. 42 ◽  
Author(s):  
S. Ghon Rhee ◽  
Franklin L. McCarthy
Keyword(s):  
Capital Budgeting ◽  
Corporate Debt ◽  
Debt Capacity

Debt Capacity and the Capital Budgeting Decision

1976 ◽  
Vol 5 (2) ◽  
pp. 7 ◽  
Author(s):  
John D. Martin ◽  
David F. Scott
Keyword(s):  
Capital Budgeting ◽  
Debt Capacity

Thai Public Capital Budget and Management Process

2019 ◽  
pp. 206-235
Author(s):  
Arwiphawee Srithongrung ◽  
Kenneth A. Kriz
Keyword(s):  
Local Governments ◽  
Public Investment ◽  
Public Capital ◽  
Capital Budgeting ◽  
Infrastructure Investment ◽  
Budget Process ◽  
Public Infrastructure ◽  
The Public ◽  
Debt Capacity

This chapter describes the public capital budgeting process in Thailand. Public infrastructure is very centralized; local governments do not play a large role in public infrastructure investment. The country's long-term physical planning is fragmented and lacks an effective long-term fiscal planning. The budget process is dominated by senior civil servants in the Bureau of the Budget, the Ministry of Finance, Bank of Thailand, and the National Economic and Social Development Board. Expensive projects financed by long-term debt bypass the budget process, and as a result, a comprehensive list of annually approved projects is unavailable to the public. This leads to public investment being driven almost entirely by debt capacity. Because of these factors, Thai governments have invested too little in public infrastructure, and the infrastructure investment is uneven across sectors.

CORPORATE DEBT CAPACITY AND THE CAPITAL BUDGETING DECISION: AN EXTENSION

1985 ◽  
Vol 20 (3) ◽  
pp. 87-87
Author(s):  
C. R. Narayanaswamy ◽  
James R. Webb ◽  
Chand Midha
Keyword(s):  
Capital Budgeting ◽  
Corporate Debt ◽  
Debt Capacity

Debt Capacity and the Capital Budgeting Decision: A Revisitation

1980 ◽  
Vol 9 (1) ◽  
pp. 23 ◽  
Author(s):  
John D. Martin ◽  
David F. Scott
Keyword(s):  
Capital Budgeting ◽  
Debt Capacity

A Single Period Stochastic Model for Maximising Firms Value

GIS Business ◽  
2016 ◽  
Vol 11 (6) ◽  
pp. 39-45
Author(s):  
J. P. Singh
Keyword(s):  
Capital Market ◽  
Firm Value ◽  
Capital Asset Pricing ◽  
Capital Asset ◽  
Asset Pricing Model ◽  
Value Maximization ◽  
Risk Return ◽  
Bankruptcy Costs ◽  
Single Period ◽  
Debt Capacity

This article sets up a single period value maximization model for the firm based on stochastic end-of-period cash inflows, stochastic bankruptcy costs and taxes based on income rather than wealth. The risk-return trade-off is captured in the Capital Asset Pricing Model. Thus, the model also assumes a perfect capital market and market equilibrium. The model establishes the existence of a unique optimal financial leverage at which the firm value is maximized, this leverage being less than the maximum debt capacity of the firm.

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