function [z,zeq] = limliabrisky(X)

%y0 ->the optimal initial value-to.debt ratio after recapitalization
%l -> lower bound of y
%u -> uper bound of y
%B -> face value of firm's debt
%I -> instantaneous coupon rate
%nydach -> risk-adjusted expected rate of return on the firm's unlevered assets
%X=[y0,l,u,B,I,nydach]

% Optimierung läuft über maxgglechungrisky
% Problem : maximiere V(y0,B,l,u)-kB über y0,l,u,B,I und nydach
% unter den Nebenbedingungen:
% 1)V(y0,B,l,u)=B(y0+k) <=> V(y0,B,l,u)-k*B=B*y0
% 2)E_y(y=l,B,l,u)>=0
% 3)D(y0,B,l,u)=B <=> B*y0=D(y0,B,l,u)*y0

% Problem umgeformt : maximiere D(y0,B,l,u)*y0 
% unter der Nebenbedingung:
% E_y(y=l,B,l,u)>=0

% oder : minimiere 0-D(y0,B,l,u)*y0
% unter der Nebenbedingung:
% E(y=l,B,l,u)=<0

%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
%Parameter
sigma=0.4;
tetap=0.03;
tetac=0.05;
r=03;
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

a=0.5 - X(6)/(sigma^2);
b=sqrt(a^2 + 2*r*(1-tetap)/(sigma^2));
m1=a+b;
m2=a-b;
e=(1-tetac)*X(5)/((1-tetap)*r);
Delta=X(3)^m1*X(2)^m2-X(3)^m2*X(2)^m1;
 

E1=(X(4)/Delta)*((e+X(3)-1)*X(2)^m2-e*X(3)^m2);
E2=(X(4)/Delta)*(e*X(3)^m1-(e+X(3)-1)*X(2)^m1);

E= E1*m1*X(2)^(m1-1)+E2*m2*X(2)^(m2-1);%-(((1-tetac)*X(5))/(1-tetap)*r)*X(4);     

z=0-E; %con. inequality
zeq=[];