Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52487#.VJoaVcCAM4 Author(s) José L. Gallizo 1* , Ana Vendrell Vilanova 1 , Manuel Salazar 2 Affiliation(s) 1 Department of Business Administration, University of Lleida, Lleida, Spain . 2 PhD IEDE Business School, Santiago de Chile, Chile . ABSTRACT This study develops a dynamic model of optimization of the value of the company following the postulates of the theory of Trade-Off. The model includes Bystrom formulation for calculating the cost of bankruptcy in the search the optimal debt. Our model is innovative in several respects: 1) raises calculate the cost of bankruptcy easily. This model is easy to implement in firms 2) cal...
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