Peter Brusov

Influence of debt financing on the effectiveness of the finite duration investment project

The problem of the influence of debt financing on the effectiveness of the arbitrary duration investment project is studied and quantitative results are obtained for the first time. The effectiveness of the investment project is considered from two perspectives: the owners of equity and debt and equity holders only. It was shown, that NPV practically always decreases with leverage in case of a constant value of equity, and the maximum leverage level, at which the project is still effective (NPV > 0), was found. In case of a constant value of the total invested capital it is possible an increase of NPV with leverage as well as its decrease, depending on the relation between the parameters of the project.

Absence of an Optimal Capital Structure in the Famous Tradeoff Theory

Within modern theory of capital structure and capital cost by Brusov-Filatova-Orekhova the analysis of wide known tradeoff theory has been made. It is shown that suggestion of risky debt financing (and growing credit rate near the bankruptcy) in opposite to waiting result does not lead to growing of weighted average cost of capital, WACC, which still decreases with leverage. This means the absence of minimum in the dependence of WACC on leverage as well as the absence of maximum in the dependence of company capitalization on leverage. Thus, it seems that the optimal capital structure is absent in famous tradeoff theory. The explanation to this fact has been done

Collective Excitations in Unconventional Superconductors and Superfluids

The Functional Integration Method Collective Excitations in Superfluid Fermi-Systems with s-Pairing Superfluid Phases in 3He The Model of 3He Collective Excitations in the B-Phase of 3He Collective Excitations in the A-Phase of 3He Stability of Goldstone Modes Influence of Dipole Interaction and Magnetic Field on Collective Excitations Influence of Electric Field on the Collective Excitations in 3He and 4He The Order Parameter Distortion and Collective Modes in 3He Collective Excitations in 2D-Phase Collective Excitations in the A1-Phase Experiments on Collective Modes in Superfluid 3He Superfluidity of Two-Dimensional and One-Dimensional Systems Bose Spectrum of Superfluid Solutions 3He-4He Novel Sound Phenomena in Impure Superfluids Collective Modes in Unconventional Superconductors Other Applications of the Theory of Collective Excitations.

Hidden Global Causes of the Global Financial Crisis

Hopes of ending the financial crisis did not materialize. Recent events (the problems of the euro zone, the threat of default in the U.S., the collapse of the financial market after a reduction of the credit rating of the U.S., debt problems in the world (Europe, U.S.), U.S. fiscal cliff, etc.) show that the crisis deepened, affecting new areas and taking on a systemic character. It becomes clear that we need in-depth analysis of its general, systemic causes. This article examines recent results in this field, obtained by scientists of Finance University under the Russian Federation Government

A Qualitatively New Effect in Corporative Finance: Abnormal Dependence of Cost of Equity of Company on Leverage

Qualitatively new effect in corporative finance is discovered: decreasing of cost of equity ke with leverage L. This effect, which is absent in perpetuity Modigliani–Miller limit, takes place under account of finite lifetime of the company at profit tax rate, which exceeds some value T*. At some ratios between cost of debt and cost of equity the discovered effect takes place at profit tax rate, existing in western countries and Russia. This provides the practical meaning of discussed effect. Its accounting is important at modification of tax low and can change the dividend policy of the company. In paper the complete and detailed investigation of discussed effect, discovered within Brusov – Filatova – Orekhova theory (BFO theory), has been done. It has been shown, that the absence of the effect at some particular set of parameters is connected to the fact, that in these cases T* exceeds 100% (profit tax rate is situated in ”non– financial” region)

Novel sound phenomena in superfluid helium in aerogel and other impure superfluids

During the last decade new techniques for producing impure superfluids with unique properties have been developed. This new class of systems includes superfluid helium confined to aerogel, HeII with different impurities (D2, N2, Ne, Kr), superfluids in Vycor glasses, and watergel. These systems exhibit very unusual properties including unexpected acoustic features. We discuss the sound properties of these systems and show that sound phenomena in impure superfluids are modified from those in pure superfluids. We calculate the coupling between temperature and pressure oscillations for impure superfluids and for superfluid He in aerogel. We show that the coupling between these two sound modes is governed either by c∂ρ/∂c or σρaρs (for aerogel) rather than thermal expansion coefficient ∂ρ/∂T, which is enormously small in pure superfluids. This replacement plays a fundamental role in all sound phenomena in impure superfluids. It enhances the coupling between the two sound modes that leads to the existence of such phenomena as the slow mode and heat pulse propagation with the velocity of first sound observed in superfluids in aerogel. This means that it is possible to observe in impure superfluids such unusual sound phenomena as slow pressure (density) waves and fast temperature (entropy) waves. The enhancement of the coupling between the two sound modes decreases the threshold values for nonlinear processes as compared to pure superfluids. Sound conversion, which has been observed in pure superfluids only by shock waves should be observed at moderate sound amplitude in impure superfluids. Cerenkov emission of second sound by first sound (which never been observed in pure superfluids) could be observed in impure superfluids.

Inflation in Brusov–Filatova–Orekhova Theory and in Its Perpetuity Limit—Modigliani–Miller Theory

In this chapter, the influence of inflation on capital cost and capitalization of the company within modern theory of capital cost and capital structure—Brusov–Filatova–Orekhova theory (BFO theory) (Brusov and Filatova 2011; Brusov et al. 2011a, b, c, 2012a, b, 2013a, b, 2014a, b; Filatova et al. 2008; Brusova 2011) and within its perpetuity limit—Modigliani–Miller theory (Мodigliani and Мiller 1958, 1963, 1966) is investigated. By direct incorporation of inflation into both theories, it is shown for the first time that inflation not only increases the equity cost and the weighted average cost of capital, but as well it changes their dependence on leverage. In particular, it increases the growing rate of equity cost with leverage. Capitalization of the company is decreased under inflation (Fig. 9.1).

A method of distinction of a mixed dx2−y2+idxy state of HTSC from the pure d-wave state

Abstract Recent experiments and theoretical considerations show that in HTSC the mixture of different d-wave states is realized. We calculate for the first time the collective mode spectrum in a mixed state d x 2 − y 2 +id xy of HTSC. We use the model of d-pairing for superconductive and superfluid fermi-systems (HTSC, HFSC, etc., developed by P.N. Brusov and N.P. Brusova within path integration technique earlier. There are 10 collective modes in considered state: five of them are high frequency and five others seem to be Goldstone-like ones. In spite of the fact that spectra in both states d x 2 − y 2 and d xy are identical the spectrum in mixture d x 2 − y 2 +id xy state turns out to be quite different from them. Thus the probe of the spectrum in ultrasound and/or microwave absorption experiments could be used to distinguish the mixture — of two d-wave states from pure d-wave state.

Ultrasound attenuation and collective modes in mixed d x2-y2 + id xy state of unconventional superconductors

We discuss two methods used for the study of unconventional superconductors: ultrasound attenuation and collective modes. These two methods, as well as microwave absorption, turn out to be coupled and have become very important now. Within models built by path integration technique we analyze some recent ideas concerning possible realization of the mixture of different d-wave states in high temperature superconductors (HTSC).We specifically consider the mixture of dx2-y2 and dxy states. We study the collective mode spectrum and the ultrasound attenuation in the mixed state, and show that each of the two methods allows us to distinguish a pure d-wave state from a mixed one. They also allow us to identify the type of pairing and order parameter in unconventional superconductors, including the presence and topology of gap nodes, the magnitude of the gap, and degree of admixture in the mixed state.

The collective modes in HTSC and heavy fermion superconductors (HFSC) under d-pairing

Abstract The model of d-pairing for superconductive and superfluid fermi-systems(HTSC, HFSC etc.) created by P.N. Brusov and N.P. Brusova within path integration technique earlier has been applied to investigation of the collective mode spectrum in HTSC and HFSC. We considered 5 states in HTSC (d x 2 −y 2 ,d 3z 2 −r 2, d xy ,d xz ,d yz ) and 3 in HFSC (dγ, Y 2−1 , sin 2 θ). We found 5 high frequency modes in each state as well as 5 Goldstone-like ones. Results could be used to interpret microwave and ultrasonic absorption experiments as well as to identify the superconductive states through these experiments.