Template-Type: ReDIF-Article 1.0
Author-Name: Pavel Е. Zhukov
Author-Email: joukov@rambler.ru
Author-Workplace-Name: The Financial University under the Government of the Russian Federation
Title: Financial Risks of Corporation, Discount Rates, and Default Probability
Abstract: The role of discount rates for volatility of market prices is discussed with relevance to CAPM and MM theory. Dependence of discount rates from probability of default proposed by W. Sharp is reviewed and significantly corrected. New model for approximation of the default probability function is proposed.
Classification-JEL:
Keywords: financial risks, discount rates, default probability, default probability function, debt to assets coefficients, interest coverage coefficients
Journal: Finansovyj žhurnal — Financial Journal
Pages: 55-62
Issue: 2
Year: 2013
Month: June
File-URL: http://www.nifi.ru/images/FILES/Journal/Archive/2013/2/statii/2013_02_06.pdf
File-Format: Application/pdf
Handle: RePEc:fru:finjrn:130206:p:55-62