Please use this identifier to cite or link to this item: 192.168.6.56/handle/123456789/104408
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dc.contributor.authorAndreas Scholze-
dc.date.accessioned2020-02-05T07:54:29Z-
dc.date.accessioned2020-05-15T21:59:00Z-
dc.date.available2020-02-05T07:54:29Z-
dc.date.available2020-05-15T21:59:00Z-
dc.date.issued2010-
dc.identifier.urihttp://196.189.45.87:8080/handle/123456789/104408-
dc.descriptionThis paper describes a simple way to integrate the debt tax shield into an accounting-based valuation model. The market value of equity is determined by forecasting residual operating income, which is calculated by charging operating income for the operating assets at a required return that accounts for the tax benefit that comes from borrowing to raise cash for the operations. The model assumes that the firm maintains a deterministic financial leverage ratio, which tends to converge quickly to typical steady-state levels over time. From a practical point of view, this characteristic is of particular help, because it allows a continuing value calculation at the end of a short forecast period.en_US
dc.languageEnglishen_US
dc.language.isoenen_US
dc.subjectfinancial statement analysis, equity valuation, financial leverage, corporate income tax,debt tax shield, residual income valuation, cost of capital, Feltham-Ohlson frameworken_US
dc.titleA Simple Accounting-based Valuation Modelfor the Debt Tax Shielden_US
dc.typeArticleen_US
Appears in Collections:Accounting and Finance

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