FinancePy

FinancePy API Reference

Merton Firm Mkt

financepy.models.merton_firm_mkt

Classes

MertonFirmMkt

MertonFirmMkt(equity_value: float | numpy.ndarray, bond_face: float | numpy.ndarray, years_to_maturity: float | numpy.ndarray, risk_free_rate: float | numpy.ndarray, asset_growth_rate: float | numpy.ndarray, equity_volatility: float | numpy.ndarray) -> None
Inherits from: MertonFirm
Market implementation of the Merton firm-value model. The observable inputs are equity value and equity volatility. The firm's asset value and asset volatility are inferred by solving the Merton equity value and equity volatility equations simultaneously. Parameters may be scalars or NumPy arrays. NumPy broadcasting rules are applied across inputs.

Methods

market_equity_value

market_equity_value(self) -> numpy.ndarray
Return the observed market equity value.

market_equity_volatility

market_equity_volatility(self) -> numpy.ndarray
Return the observed market equity volatility.
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