Comment on "The value of tax shields is NOT equal to the present value of tax shields"

Fernandez [2004; The value of tax shields is NOT equal to the present value of tax shields. Journalof Financial Economics, 73, 145165] claims to derive a formula for the valuation of debt tax shieldsfor firms with cash flows that growperpetually at a constant rate.We showthat his formula is incorrect.

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Year of publication:	2004-11-21
Authors:	Fieten, Paul ; Kruschwitz, Lutz ; Laitenberger, Jörg ; Löffler, Andreas ; Tham, Joseph ; Vélez Pareja, Ignacio ; Wonder, Nicholas
Published in:	Freie Universität Berlin, Institut für Bank- und Finanzwirtschaft, Prof. Lutz Kruschwitz - Publikationen In: The Quarterly Review of Economics and Finance ; (45) 2005, S. 184-187
Publisher:	Institut für Bank- und Finanzwirtschaft <Berlin>
Subject:	Steuer \| Kommentar

Table of Contents
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1. Introduction
2. The model and result
3. Conclusion

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