295 research outputs found
Application of the ModiglianiâMiller Theory, Modified for the Case of Advance Payments of Tax on Profit, in Rating Methodologies
During a couple years we have suggested a new approach to rating methodology of nonâfinancial issuers, as well for project rating. The key factors of a new approach are: 1) The adequate use of discounting of financial flows virtually not used in existing rating methodologies, 2) The incorporation of rating parameters (financial "ratios") into the modern theory of capital structure (BrusovâFilatovaâOrekhova (BFO) theory) and into its perpetuity limit.
Recently we have generalized the Modigliani and Miller theory for a more realistic method of payments of tax on profit: for the case of advance payments of tax on profit, which is widely used in practice. Modigliani â Miller theory accounts these tax payments as annuityâimmediate, while in practice these payments are making in advance and thus should be accounting as annuityâdue. We have shown that this generalization leads to some important consequences, which change seriously all the main statements by Modigliani and Miller.
In current paper we use the modified Modigliani â Miller theory (MMM theory) and apply it for rating methodologies needs. A serious modification of MMM theory in order to use it in rating procedure has been required. The financial "ratios" were incorporated into MMM theory. The dependence of the weighted average cost of capital (WACC), which plays the role of discount rate, on coverage and leverage ratios is analyzed.
Obtained results make possible to use the power of this theory in the rating and create a new base for rating methodologies
Modification of the ModiglianiâMiller Theory for the Case of Advance Payments of Tax on Profit
The first serious study (and first quantitative study) of influence of capital structure of the company on its indicators of activities was the work by Nobel Prize Winners Modigliani and Miller. Their theory has a lot of limitations. One of the most important and seriouse assumptions of the Modigliani â Miller theory is that all financial flows as well as all companies are perpetuity. This limitation was lift out by BrusovâFilatovaâOrekhova in 2008 (Filatova et al. 2008), who have created BFO theory â modern theory of capital cost and capital structure for companies of arbitrary age.
Despite the fact that the ModiglianiâMiller theory is currently a particular case of the general theory of capital cost and capital structure â BrusovâFilatovaâOrekhova (BFO) theory â it is still widely used at the West.
In current paper we discuss one more limitation of Modigliani â Miller theory: a method of tax on profit payments. Modigliani â Miller theory accounts these payments as annuityâimmediate while in practice these payments are making in advance and thus should be accounted as annuityâdue.
We generalize the ModiglianiâMiller theory for the case of advance payments of tax on profit, which is widely used in practice, and show that this leads to some important consequencies, which change seriously all the main statements by Modigliani and Miller. These consequencies are as following: WACC starts to depend on debt cost kd, WACC turns out to be lower than in case of classical ModiglianiâMiller theory and thus company capitalization becomes higher than in ordinary ModiglianiâMiller theory.We show that dependence of equity cost on leverage level L is still linear, but the tilt angle with respect to Lâaxis turns out to be smaller: this could lead to modification of the divident policy of the company.
Correct account of a method of tax on profit payments demonstrates that shortcomings of Modigliani â Miller theory are dipper, than everybody suggested: the underestimation of WACC really turns out to be bigger, as well as overestimation of the capitalization of the company. This means that systematic risks arising from the use of modified Modigliani â Miller theory (MMM theory) (which is more correct than "classical' one) in practice are higher than it was suggested by the "classical" version of this theory
Statistics of Coulomb blockade peak spacings for a partially open dot
We show that randomness of the electron wave functions in a quantum dot
contributes to the fluctuations of the positions of the conductance peaks. This
contribution grows with the conductance of the junctions connecting the dot to
the leads. It becomes comparable with the fluctuations coming from the
randomness of the single particle spectrum in the dot while the Coulomb
blockade peaks are still well-defined. In addition, the fluctuations of the
peak spacings are correlated with the fluctuations of the conductance peak
heights.Comment: 13 pages, 1 figur
Finite temperature effects in Coulomb blockade quantum dots and signatures of spectral scrambling
The conductance in Coulomb blockade quantum dots exhibits sharp peaks whose
spacings fluctuate with the number of electrons. We derive the
temperature-dependence of these fluctuations in the statistical regime and
compare with recent experimental results. The scrambling due to Coulomb
interactions of the single-particle spectrum with the addition of an electron
to the dot is shown to affect the temperature-dependence of the peak spacing
fluctuations. Spectral scrambling also leads to saturation in the temperature
dependence of the peak-to-peak correlator, in agreement with recent
experimental results. The signatures of scrambling are derived using discrete
Gaussian processes, which generalize the Gaussian ensembles of random matrices
to systems that depend on a discrete parameter -- in this case, the number of
electrons in the dot.Comment: 14 pages, 4 eps figures included, RevTe
Direct evidence of soft mode behavior near the Burns' temperature in PbMgNbO (PMN) relaxor ferroectric
Inelastic neutron scattering measurements of the relaxor ferroelectric
PbMgNbO (PMN) in the temperature range
490~KT880~K directly observe the soft mode (SM) associated with the
Curie-Weiss behavior of the dielectric constant (T). The results
are treated within the framework of the coupled SM and transverse optic (TO1)
mode and the temperature dependence of the SM frequency at q=0.075 a* is
determined. The parameters of the SM are consistent with the earlier estimates
and the frequency exhibits a minimum near the Burns temperature (
650K)Comment: 6 figure
A framework for digital sunken relief generation based on 3D geometric models
Sunken relief is a special art form of sculpture whereby the depicted shapes are sunk into a given surface. This is traditionally created by laboriously carving materials such as stone. Sunken reliefs often utilize the engraved lines or strokes to strengthen the impressions of a 3D presence and to highlight the features which otherwise are unrevealed. In other types of reliefs, smooth surfaces and their shadows convey such information in a coherent manner. Existing methods for relief generation are focused on forming a smooth surface with a shallow depth which provides the presence of 3D figures. Such methods unfortunately do not help the art form of sunken reliefs as they omit the presence of feature lines. We propose a framework to produce sunken reliefs from a known 3D geometry, which transforms the 3D objects into three layers of input to incorporate the contour lines seamlessly with the smooth surfaces. The three input layers take the advantages of the geometric information and the visual cues to assist the relief generation. This framework alters existing techniques in line drawings and relief generation, and then combines them organically for this particular purpose
Adjustment of the electric current in pulsar magnetospheres and origin of subpulse modulation
The subpulse modulation of pulsar radio emission goes to prove that the
plasma flow in the open field line tube breaks into isolated narrow streams. I
propose a model which attributes formation of streams to the process of the
electric current adjustment in the magnetosphere. A mismatch between the
magnetospheric current distribution and the current injected by the polar cap
accelerator gives rise to reverse plasma flows in the magnetosphere. The
reverse flow shields the electric field in the polar gap and thus shuts up the
plasma production process. I assume that a circulating system of streams is
formed such that the upward streams are produced in narrow gaps separated by
downward streams. The electric drift is small in this model because the
potential drop in narrow gaps is small. The gaps have to drift because by the
time a downward stream reaches the star surface and shields the electric field,
the corresponding gap has to shift. The transverse size of the streams is
determined by the condition that the potential drop in the gaps is sufficient
for the pair production. This yields the radius of the stream roughly 10% of
the polar cap radius, which makes it possible to fit in the observed
morphological features such as the "carousel" with 10-20 subbeams and the
system of the core - two nested cone beams.Comment: 8 pages, 1 figur
Relation Between Chiral Susceptibility and Solutions of Gap Equation in Nambu--Jona-Lasinio Model
We study the solutions of the gap equation, the thermodynamic potential and
the chiral susceptibility in and beyond the chiral limit at finite chemical
potential in the Nambu--Jona-Lasinio (NJL) model. We give an explicit relation
between the chiral susceptibility and the thermodynamic potential in the NJL
model. We find that the chiral susceptibility is a quantity being able to
represent the furcation of the solutions of the gap equation and the
concavo-convexity of the thermodynamic potential in NJL model. It indicates
that the chiral susceptibility can identify the stable state and the
possibility of the chiral phase transition in NJL model.Comment: 21 pages, 6 figures, misprints are correcte
A Solvable Regime of Disorder and Interactions in Ballistic Nanostructures, Part I: Consequences for Coulomb Blockade
We provide a framework for analyzing the problem of interacting electrons in
a ballistic quantum dot with chaotic boundary conditions within an energy
(the Thouless energy) of the Fermi energy. Within this window we show that the
interactions can be characterized by Landau Fermi liquid parameters. When ,
the dimensionless conductance of the dot, is large, we find that the disordered
interacting problem can be solved in a saddle-point approximation which becomes
exact as (as in a large-N theory). The infinite theory shows a
transition to a strong-coupling phase characterized by the same order parameter
as in the Pomeranchuk transition in clean systems (a spontaneous
interaction-induced Fermi surface distortion), but smeared and pinned by
disorder. At finite , the two phases and critical point evolve into three
regimes in the plane -- weak- and strong-coupling regimes separated
by crossover lines from a quantum-critical regime controlled by the quantum
critical point. In the strong-coupling and quantum-critical regions, the
quasiparticle acquires a width of the same order as the level spacing
within a few 's of the Fermi energy due to coupling to collective
excitations. In the strong coupling regime if is odd, the dot will (if
isolated) cross over from the orthogonal to unitary ensemble for an
exponentially small external flux, or will (if strongly coupled to leads) break
time-reversal symmetry spontaneously.Comment: 33 pages, 14 figures. Very minor changes. We have clarified that we
are treating charge-channel instabilities in spinful systems, leaving
spin-channel instabilities for future work. No substantive results are
change
Studying monoids is not enough to study multiplicative properties of rings: an elementary approach
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