Switching tax structure and payouts in endogenous bankruptcy models

In the spirit of Leland (H.E. Leland, Corporate Debt Value, Bond Covenant, and Optimal Capital Structure, J. Finance 49 (1994), pp. 1213–1252), we consider a structural credit risk model with tax provisions under the assumption of a positive payout rate. By defining a more general tax structure than in (Leland, 1994), we introduce a general switching corporate tax rate function and analytically derive the value of the tax benefits claim, the whole capital structure and the smooth pasting condition. In this set-up, the endogenous failure level is derived and both the singular and joint effect of the two introduced risk factors (payouts and tax asymmetry) on optimal managerial financing decisions are studied. Results show a quantitatively significant impact on optimal debt issuance and leverage ratios, bringing them to values more in line with historical norms and providing a way to explain differences in observed leverage across firms.     

A bundle type approach to the unconstrained minimization of convex nonsmooth functions

A numerical method for the unconstrained minimization of a convex nonsmooth function of several variables is presented. It is closely related to the bundle type approach and to the conjugate subgradient method. A way is suggested to reduce the amount of information to be stored during the computational procedure. Global convergence of the method to the minimum is proved.     

Nonsmooth optimization methods for parallel decomposition of multicommodity flow problems

We develop an iterative algorithm based on right-hand side decomposition for the solution of multicommodity network flow problems. At each step of the proposed iterative procedure the coupling constraints are eliminated by subdividing the shared capacity resource among the different commodities and a master problem is constructed which attempts to improve sharing of the resources at each iteration.As the objective function of the master problem is nonsmooth, we apply to it a new optimization technique which does not require the exact solutions of the single commodity flow subproblems. This technique is based on the notion of - subgradients instead of subgradients and is suitable for parallel implementation. Extensions to the nonlinear, convex separable case are also discussed.The work of this author has been supported by the Air Force Office of Scientific Research Grant AFOSR-89-0410.     

Design of a new mimochrome with unique topology

Peptide-based metalloprotein models represent useful systems to help understand how metalloproteins can support different functions, by the use of similar metal ion cofactors. In order to shed light on the role of the protein matrix in modulating the heme properties, we developed new models: mimochromes. They are pseudo-C(2) symmetric systems, composed of two helical peptides covalently linked to the deuteroporphyrin. The use of C(2) symmetry is particularly advantageous, because it simplifies the design, synthesis and characterization. However, it leaves the problem of possible diastereomeric forms. In the cobalt complex of the first derivative, mimochrome I, Lambda and Delta isomers were indeed experimentally observed. All the insights derived from the Co(III)-mimochrome I structure were used to obtain a re-designed molecule, mimochrome IV. The spectroscopic characterization of the iron and cobalt derivatives suggested the presence of the Lambda isomer as unique species. The NMR solution structure of the diamagnetic Co(III)-mimochrome IV confirmed the ability of the molecule to adopt a unique topology, and revealed the peptide chains to be in helical conformation, as designed. The insertion of intramolecular, inter-chain interactions was successful in favoring the formation of one of the two possible diastereomers. The stereochemically stable structure of mimochrome IV provides an attractive model for modulating the redox potential of the heme, by simple changing the peptide chain composition around the heme.     

Low Valence States of Metal Chelates. V. Tris(1,10-phenanthroline)cobalt(II) and bis(2,9-dimethyl-1,10-phenanthroline)cobalt(II) perchlorates

D. C. polarography and cyclic voltammetry were used for investigating the reduction processes of the tris(1,10-phenanthroline)cobalt(II) and bis(2,9-dimethyl-1, 10-phenanthroline)-cobalt(II) perchlorates in 0.1 M solutions of tetraethylammonium perchlorate in acetonitrile. The first complex gave a four-step reduction wave; the first two steps were found to be diffusion controlled and reversible reductions from Co(phen)⁺ to Co(phen)₃⁺ to Co(phen) to Co(phen;) occured. The second complex gave a six-step reduction wave; the first three steps were found to be diffusion controlled and were to be considered as successive reversible reductions from Co(2, 9dm-phen)⁺ to Co(2, 9dmphen), from Co(2, 9dmphen) to Co(2, 9dmphen)₂ and from Co(2, 9dmphen)₂ to Co(2, 9dmphen).     

The efficiency of photolyase and indole complexes to repair DNA containing dimers of pyrimidine: a theoretical analysis of the electron transfer reactions

We analyze the effects of competing reactions to the efficiency of enzymatic splitting of pyrimidine dimers formed in DNA by the incidence of ultraviolet radiation. This is accomplished with the aid of a formula that expresses the efficiency of the repair in terms of parameters that regulate the reaction rates for primary and for back long-range electron transfers taking place in the process. Comparison of experimental data with estimations on account of this formula supports early conjectures in the literature that attribute the relative high performance of the enzymatic complexes of photolyase to its ability to suppress the back reaction.     

Lipopeptide surfactant production by Bacillus subtilis grown on low-cost raw materials

The production of biosurfactant by Bacillus subtilis ATCC 6633 was investigated using commercial sugar, sugarcane juice and cane molasses, sugarcane juice alcohol stillage, glycerol, mannitol, and soybean oil. Commercial sugar generated the minimum values of surface tension, with the best results (28.7 mN/m, (relative critical micelle concentration [CMC⁻¹] of 78.6) being achieved with 10 g of substrate/L in 48 h. At a pH between 7.0 and 8.0, a higher production of surface-active compounds and a greater emulsifier activity was also observed. Enrichment of the culture medium with trace minerals and EDTA showed maximum yields, whereas supplementation with yeast extract stimulated only cell growth. The kinetic studies revealed that biosurfactant production is a cell growth-associated process; surface tension, CMC, and emulsification index values of 29.6 dyn/cm, 82.3, and 57%, respectively, were achieved, thus indicating that it is feasible to produce biosurfactants from a renewable and low-cost carbon source.     

Molecular Recognition of Amino Acids by Copper(II) Complexes of 6(A),6(X)-Diamino-6(A),6(X)-dideoxy-beta-cyclodextrin (X = B, C, D)

The three regioisomers of beta-cyclodextrin 6-difunctionalized with NH(2) groups (6(A),6(X)-diamino-6(A),6(X)-dideoxy-beta-cyclodextrin, A,X-CDNH(2), X = B, C, or D) were synthesized. Their binary and ternary copper(II) complexes with amino acids were characterized by ESR and electronic spectroscopy. Furthermore, the binary copper(II) complexes were used as eluent in ligand exchange chromatography (LEC), to resolve racemates of unmodified amino acids. HPLC separation of enantiomers of aromatic amino acids was obtained only when the complex [Cu(A,B-CDNH(2))](2+) was used as eluent. The two complexes with the other two regioisomers did not show chiral recognition ability. Circular dichroism (c.d.) spectroscopy studies of the ternary complexes with D- and L-amino acids carried out in the presence and in the absence of 1-adamantanol, suggested a recognition mechanism that involves the cyclodextrin cavity, only in the case of ternary A,B-CDNH(2) complexes.     

Determining the structure and mode of action of microbisporicin, a potent lantibiotic active against multiresistant pathogens

Antibiotics blocking bacterial cell wall assembly (beta-lactams and glycopeptides) are facing a challenge from the progressive spread of resistant pathogens. Lantibiotics are promising candidates to alleviate this problem. Microbisporicin, the most potent antibacterial among known comparable lantibiotics, was discovered during a screening applied to uncommon actinomycetes. It is produced by Microbispora sp. as two similarly active and structurally related polypeptides (A1, 2246-Da and A2, 2230-Da) of 24 amino acids linked by 5 intramolecular thioether bridges. Microbisporicin contains two posttranslational modifications that have never been reported previously in lantibiotics: 5-chloro-trypthopan and mono- (in A2) or bis-hydroxylated (in A1) proline. Consistent with screening criteria, microbisporicin selectively blocks peptidoglycan biosynthesis, causing cytoplasmic UDP-linked precursor accumulation. Considering its spectrum of activity and its efficacy in vivo, microbisporicin represents a promising antibiotic to treat emerging infections.