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- W2608542180 abstract "This article investigates the determinants of optimal capital structure in real estateinvestment by using a real options framework. An investor chooses a purchase date and aloan-to-value (LTV) ratio that balances the tax shield benefit and the transaction costs. Afterthe purchase, the investor acquires the option to default. Greater uncertainty in housing priceinflation will enhance this option value such that the investor will purchase earlier and reducedebt financing. This is consistent with the recent U.S. experience in which high LTV ratioswere observed before and low LTV ratios were observed around the subprime mortgage crisis.Key words: Default, optimal capital structure, real estate investment, real options, transactioncosts" @default.
- W2608542180 created "2017-05-05" @default.
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- W2608542180 date "2017-03-31" @default.
- W2608542180 modified "2023-09-24" @default.
- W2608542180 title "Default Option and Optimal Capital Structure in Real Estate Investment" @default.
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