Introduction -- The capital asset pricing model (CAPM) & CAPM 2.0 -- The Arbitrage Pricing Theory (APT) -- Capital Structure -- Modigliani–Miller Theory -- The Modigliani–Miller theory with arbitrary frequency of payment of tax on profit -- Modification of the Modigliani–Miller theory for...

This paper proposes two metrics to correctly measure under optimal capital structures the impact of corporate statutory tax rates (a) on the effective tax rate, and (b) on the operational risk of capital investment projects and their parent firm's project portfolio. For illustrative and...