Browsing Working Papers by Author "Myers, Stewart C."

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    • Discounting rules for risky assets 

      Myers, Stewart C.; Ruback, Richard S. (MIT Center for Energy and Environmental Policy Research, 1993)
      This paper develops a new rule for calculating the discount rate to value risky projects. The rule works under any linear asset pricing model and any equilibrium theory of debt and taxes. If securities are priced by the ...