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2012
- handle: 10670/1.2siiz1
- 0121-5051
Ce document est lié à :
http://www.redalyc.org/revista.oa
INNOVAR. Revista de Ciencias Administrativas y Sociales
Mots-clés
Administración y Contabilidad Firm valuation Share valuation Capital structure Value of tax shieldsSujets proches
Standard of value Capitalization (Finance) Appraisal Property--Valuation Economic valuation Capital assets Fixed assetsCiter ce document
James W. Kolari et al., « Corporation income taxes and the cost of capital: a revision », INNOVAR. Revista de Ciencias Administrativas y Sociales, ID : 10670/1.2siiz1
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Résumé
"The value of debt tax shields in foundational corporate valuation models by NobelLaureates Modigliani and Miller (MM) continues to be a controversial issue that is central to ourunderstanding of corporate finance. Rather than discounting debt interest payments using a risklessinterest rate or unlevered equity rate, the present paper proposes the use of the levered cost ofequity. Assuming no bankruptcy risk and no personal taxes, our revised tax model yields an invertedU-shaped firm value function with an interior optimal capital structure. Analyses are extended toMiller’s personal tax extension of MM’s tax model. Also, implications to corporate capital structuredecisions and previous literature are discussed."