New mixed financing strategies revolutionize corporate valuation accuracy and market values.
The article explores how companies can use a mix of different financing strategies to better reflect their real financial practices. By combining passive and active debt management, firms can create more accurate valuation models. The researchers analyzed how to apply these mixed financing strategies in a two-phase model, simplifying the valuation equation for discontinuous financing. Through theoretical comparisons and simulations, they found that these mixed strategies can improve market values and sensitivity to input parameters. In conclusion, mixed financing strategies offer a valuable alternative to traditional financing methods for corporate valuation.