TY - JOUR
AU - Spies, Richard R.
AB -  The Journal of Finance these variables is a measure of cash flow, net profits plus depreciation allowances. This variable, denoted by Y, is exogenous as long as the policies determining production, pricing, advertising, taxes, and the like cannot be changed quickly enough to affect the present period’s earnings. Since the data used in this work are quarterly, this does not seem to be an unreasonable assumption. I t should also be noted that the “uses equals sources” identity insures that: i=l i=l where X1.t = Xz., = DIVt = cash dividends paid in period t; ISTt = net investment in short-term assets during period t ; ILTt = gross investment in long-term assets during period t; X:3.t = X.i.t= -DF,= &.t minus the net proceeds from new debt issued during period t ; period t ; = -EQFt = minus the net proceeds from new equity issues during and where X*i.t= the optimal leveI of Xi,t. The second exogenous variable in the model is the corporate bond rate, RCB,. This was used as a measure of the borrowing rate faced by the corporation. I n addition, the debt-equity ratio at the start of the period, DEL,, was included 
TI - THE DYNAMICS OF CORPORATE CAPITAL BUDGETING
JF - The Journal of Finance
DO - 10.1111/j.1540-6261.1974.tb01486.x
DA - 1974-06-01
UR - https://www.deepdyve.com/lp/wiley/the-dynamics-of-corporate-capital-budgeting-3rOTR0OwM0
SP - 829
VL - 29
IS - 3
DP - DeepDyve
ER -