Optimization of Leverage within Net Present Value

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F13%3A86087832" target="_blank" >RIV/61989100:27510/13:86087832 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Result language
čeština
Original language name
Optimization of Leverage within Net Present Value
Original language description
The paper is devoted to the optimization of leverage within maximization of Net Present Value (NPV), while NPV is estimated on the Equity basis. Goal of the paper is to analytically express the formulas for estimation of the optimal amount of the loan atspecified assumptions for given function of interest rate. We consider (i) a constant interest rate and (ii) an interest rate linearly dependent on the amount of the loan. Repayment of the loan principal is considered as constant. As a result, we are presented analytical formulas for calculation of the optimal amount of debt for each of the considered assumptions.
Czech name
Optimization of Leverage within Net Present Value
Czech description
The paper is devoted to the optimization of leverage within maximization of Net Present Value (NPV), while NPV is estimated on the Equity basis. Goal of the paper is to analytically express the formulas for estimation of the optimal amount of the loan atspecified assumptions for given function of interest rate. We consider (i) a constant interest rate and (ii) an interest rate linearly dependent on the amount of the loan. Repayment of the loan principal is considered as constant. As a result, we are presented analytical formulas for calculation of the optimal amount of debt for each of the considered assumptions.

Project
<a href="/en/project/EE2.3.20.0296" target="_blank" >EE2.3.20.0296: Research team for modelling of economic and financial processes at VSB-TU Ostrava</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)<br>S - Specificky vyzkum na vysokych skolach

Publication year
2013
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection
Financial Management of Firms and Financial Institutions : 9th international scientific conference : 9th - 10th September 2013, Ostrava, Czech Republic : proceedings. [Part 1-3]
ISBN
978-80-248-3172-5
ISSN
2336-162X
e-ISSN
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Number of pages
7
Pages from-to
227-233
Publisher name
VŠB-Technical University of Ostrava
Place of publication
Ostrava
Event location
Ostrava
Event date
Sep 9, 2013
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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