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Debt service parity approach |
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Debt service parity approachPayment alternatives that provide the firm with the exact same schedule of after-tax debt payments (including both interest and principal).Debt service parity approach Similar MatchesTop down approachTop down approachA method of security selection that starts with asset allocation and works systematically through sector and industry allocation to individual security selection. Asset approachAsset approachA theory of determination of the exchange rate that focuses on its role as the price of an asset. With high capital mobility, equilibrium requires that expected returns on comparable domestic and foreign assets be the same. Absorption approachAbsorption approachA way of understanding the determinants of the balance of trade, noting that it is equal to income minus absorption. Due to Alexander (1952) Stratified sampling approach to indexingStratified sampling approach to indexingDividing an index into cells, each representing a different characteristic of the index, such as duration or maturity. Signaling approachSignaling approachNotion that insiders in a firm have information that the market does not have, and that the choice of capital structure by insiders can signal information to outsiders and change the value of the firm. This theory is also called the asymmetric information approach. Further SuggestionsCross sectional approachMonetary approach Variance minimization approach to tracking Portfolio approach Risk premium approach Market Value Approach Residual dividend approach Elasticities approach Formula approach Optimization approach to indexing |
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