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Extensions of Merton's model (EMM) considering the firm's payments and generating new types of firm value distribution are suggested. In the open log-value/time space, these distributions evolve from initially normal to negatively skewed ones, and their means are concave-down functions of time. When payments are set to zero or proportional to the firm value, EMM turns into the Geometric Brownian model (GBM). We show that risk-neutral probabilities (RNPs) and the no-arbitraging principle (NAP)doi:10.17265/2328-2185/2020.03.002 fatcat:2ylospvw5ba7dppiiuuw7zxx4i