Optimal Equity and Financing Model of Krouse and Lee: Corrections and Extensions

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1978
Volume: 13
Issue: 3
Pages: 487-505

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Krouse and Lee [5] have formulated an optimal financing problem of a firm in the dynamic setting of optimal control theory. Specifically, the problem is to find a financing mix of retained earnings and external equity over time in a way that maximizes the present value of the entire future dividends stream accruing to the firm's initial stockholders subject to a given maximum allowable growth rate for the firm.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:13:y:1978:i:03:p:487-505_00
Journal Field
Finance
Author Count
1
Added to Database
2026-01-29