Windfall profits and losses accrue to investors only when expected after-tax returns or discount rates change, and major tax policy shifts are likely to alter these variables. This study introduces a cashflow valuation model for estimating the windfalls to owners of U.S. nonfinancial...

Windfall profits and losses accrue to investors only when expected after-tax returns or discount rates change, and major tax policy shifts are likely to alter these variables. This study introduces a cashflow valuation model for estimating the windfalls to owners of U.S. nonfinancial...

A new expression is derived in which the cost of capital is an explicit function of debt maturity structure and the underlying real asset cash flow stream. In special cases the cost of capital expression reduces to the standard weighted average cost of capital, but generally the standard...

Standard specification of marginal effective tax rate (METR) as expected pretax minus after-tax rates of return divided by pretax rate of return contains a fundamental flaw rendering the measure useless except in a few special cases. The current study exposes the flaw and introduces an...