WACC and a generalized tax code

Valuation of firms is generally based on the WACC approach which typically neglects personal income taxes. This paper extends this approach to incorporate personal income taxes and develop a generalized valuation formula which can be used for any taxation system. The approach is illustrated for four different taxation systems highlighting the importance of considering personal taxes.

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Year of publication:	2006
Authors:	Husmann, Sven ; Kruschwitz, Lutz ; Loffler, Andreas
Published in:	The European Journal of Finance. - Taylor & Francis Journals, ISSN 1351-847X. - Vol. 12.2006, 1, p. 33-40
Publisher:	Taylor & Francis Journals
Subject:	WACC \| tax shield \| imputation system

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005268711