Molnár, Peter; Nyborg, Kjell G. - 2011
Cooper and Nyborg (2008) derive a tax-adjusted discount rate formula under a constant proportion leverage policy … anticipated recovery in default, yet small. The cost of debtʺ in the tax adjusted discount rate formula is the debt’s yield rather … than its expected rate of return. tax-adjusted discount rates, tax shields, risky debt, cost of debt, personal taxes …