Optimal Dividends and Corporate Growth under Uncertainty

Abstract

Introduction, 49. — I. Some important definitions and building-blocks, 53. — II. The cost of capital and optimal dividends and growth under certainty, 58. — III. Simple stochastic unlevered growth, 65. — IV. Optimal (expectationally) steady growth, capital budgets, dividends and retentions, when σ 2 pt increases with futurity, 76. — V. Summary of conclusions, 91.