Costo de Capital con Costo del Patrimonio Apalancado Como el Riesgo de los Escudos Fiscales (Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields)
Revista Emprendedorismo y Estrategia Organizacional, Vol. 1, No. 2, pp. 15-19, 2011
14 Pages Posted: 1 Oct 2010 Last revised: 5 Aug 2013
There are 2 versions of this paper
Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields
Costo de Capital con Costo del Patrimonio Apalancado Como el Riesgo de los Escudos Fiscales (Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields)
Date Written: September 29, 2010
Abstract
The English version of this paper can be found at http://ssrn.com/abstract=1655244.
Se presenta la derivación de costo de capital bajo la premisa del ahorro de impuestos de riesgo descuento con el costo de capital apalancado. Se demuestra que la formulación es coherente y se deriva de los principios financieros básicos. Esta formulación es válida para los flujos de caja finitos y perpetuidades sin crecimiento. Además, se puede calcular sin la circularidad entre el valor y la tasa de descuento.
We present the derivation of cost of capital under the assumption of risky tax shields discounted with the cost of levered equity. We show that the formulation is consistent and is derived from basic financial principles. This formulation is valid for finite cash flows and non growing perpetuities. In addition, it can be calculated without the circularity between value and discount rate.
Note: Downloadable document is in Spanish.
Keywords: Cost of levered equity, firm valuation, tax shields, discount rate for tax shields, risk of tax shields
JEL Classification: M21, M40, M46, M41, G12, G31, J33
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Corporation Income Taxes and the Cost of Capital: A Revision
-
Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields
By Joseph Tham, Ignacio Velez-pareja, ...
-
Estimating the Appropriate Risk Profile for the Tax Savings: A Contingent Claim Approach
-
Optimal Capital Structure for Finite Cash Flows
By Felipe Mejia-pelaez, Ignacio Velez-pareja, ...
-
Analytical Solution for Optimal Capital Structure in Perpetuities
By Joseph Tham, Ignacio Velez-pareja, ...
-
By Felipe Mejia-pelaez, Ignacio Velez-pareja, ...
-
By Rafael Salas-pérez, Juan Gutiérrez Ruiz, ...