Dempsey, Mike - In: Journal of Business Finance & Accounting 28 (2001-04) 3-4, pp. 357-378
This paper advances expressions for the firm's valuation and cost of capital as a function of leverage. The framework is arrived at by introducing leverage in Dempsey's (1996 and 1998) cost of capital framework and is applicable in the context of both classical and imputation tax systems. The...