Discussion of 'Optimal Capital Structure Model for BOT Power Projects in Turkey' by Sandalkhan Bakatjan, Metin Arikan, and Robert L. K. Tiong

摘要

In their paper, the authors introduced a simplified model using the combination of a financial model and linear programming (LP) to find the target ratio in capital structure that maximizes the return of the equity holder's investment. Previous authors like Kim (1978), Dias and Ioannou (1995), and Pollio (1999) have also dealt with the optimal capital structure using probabilistic approach. The subject is of the greatest interest to the discusser as the discusser is currently working on the issue of private sector participation in infrastructure for a PhD thesis at the Technical University of Berlin. This paper provides valuable information for the discusser's work.