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Valuation with Share Repurchases and Personal Taxes

Diedrich, Ralf - 2019

We derive a consistent valuation approach integrating the interdependent effects of cash dividends, share repurchases, and active debt management while considering personal taxes. Additionally, we identify effects of share repurchases on the cost of equity by deriving appropriate adjustment...

Persistent link: https://www.econbiz.de/10012895169

Zinsschranke, Unternehmensbewertung und APV Ansatz - eine Anmerkung zum Beitrag von Förster/Stöckl/Brenken (ZfB 2009, S. 985 ff.)

Arnold, Sven; Lahmann, Alexander; Schwetzler, Bernd - 2011 - Version vom 09.06.2010

Diskontierungssätze die Kenntnis des Wertbeitrages bereits voraus. -- Unternehmensbewertung ; Kapitalstruktur ; Tax Shield ; Zinsschranke …The German "Zinsschranke" limits the tax deductability of interest expenses. Recently, in this journal Förster et al … Zinsschranke und ihrer Wirkung auf die zinsinduzierte Steuerersparnis vor. Dieser Beitrag nimmt kritisch dazu Stellung: Es wird …

Persistent link: https://www.econbiz.de/10008986956

Capital Structure on Valuation

L. Dumrauf, Guillermo - 2016

Although there is a strong consensus that the weights in the cost of capital calculation must be market value weights, in a business valuation, appraisers do not use an unique approach to estimate the capital structure that will prevail in the future. In fact, both practitioners and academics...

Persistent link: https://www.econbiz.de/10012999513

Do Personal Taxes Destroy Tax Shields? A Critique to Miller’s (1977) Paper

Velez-Pareja, Ignacio - 2017

La versión española de este artículo se puede encontrar en: 'http://ssrn.com/abstract=2685207' http://ssrn.com/abstract=2685207.We discuss the relevance of personal taxes on Tax Shields. Interest and taxes are the basis for defining an optimal capital structure. When personal taxes are...

Persistent link: https://www.econbiz.de/10012970934

What Do Private Equity Firms Say They Do?

Gompers, Paul A. - 2017

We survey 79 private equity (PE) investors with combined assets under management of more than $750 billion about their practices in firm valuation, capital structure, governance, and value creation. Investors rely primarily on internal rates of return and multiples to evaluate investments. Their...

Persistent link: https://www.econbiz.de/10012973133

A Dynamic Model of Firm Valuation

Lazzati, Natalia - 2017

We propose a dynamic version of the dividend discount model, solve it in closed-form, and assess its empirical validity. The valuation method is tractable and can be easily implemented. We find that our model produces equity value forecasts that are very close to market prices, and explains a...

Persistent link: https://www.econbiz.de/10012973248

The Choice of Tax Shields’ Discount Rate on Firm Valuation : A Case Study

Lopes, Margarida - 2016

This dissertation suggests that the tax savings, in firm valuation, are discounted at a rate computed through a model presented in the literature review, which is different from the rates usually used for this purpose either by the top text books from, for example, Neves (2002), Ross,...

Persistent link: https://www.econbiz.de/10012985739

Leverage, Cost of Capital and Bank Valuation

Beltrame, Federico - 2019

In this paper we present a model that demonstrates the effect of debt on cost of capital and value for banks with risky assets. Using a static partial equilibrium setting, both in a steady state and steady growth scenario, we derive a bank- specific valuation metric which separately attributes...

Persistent link: https://www.econbiz.de/10012903382

WACC : Definition, Misconceptions and Errors

Fernández, Pablo - 2019

The WACC is just the rate at which the Free Cash Flows must be discounted to obtain the same result as in the valuation using Equity Cash Flows discounted at the required return to equity (Ke).The WACC is neither a cost nor a required return: it is a weighted average of a cost and a required...

Persistent link: https://www.econbiz.de/10012906072

Pass-Through Taxation and the Value of the Firm

Jalbert, Terrance - 2009

A great deal of work has been done on the optimal capital structure and valuation of the firm. The majority of the literature explores valuation and optimal capital structure conditions under the double taxation system. In this paper, valuation equations and optimal capital structure conditions...

Persistent link: https://www.econbiz.de/10013156694