Artikel
A Simple Accounting-based Valuation Model for the Debt Tax Shield
This 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.
- Sprache
-
Englisch
- Erschienen in
-
Journal: BuR - Business Research ; ISSN: 1866-8658 ; Volume: 3 ; Year: 2010 ; Issue: 1 ; Pages: 37-47 ; Göttingen: VHB - Verband der Hochschullehrer für Betriebswirtschaft, German Academic Association of Business Research
- Klassifikation
-
Management
- Thema
-
corporate income tax
cost of capital
debt tax shield
equity valuation
financial leverage
financial statement analysis
residual income valuation
Feltham-Ohlson framework
Bilanzanalyse
Steuervergünstigung
Fremdkapital
Kapitalkosten
Residualgewinn
Operations Research
- Ereignis
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Geistige Schöpfung
- (wer)
-
Scholze, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
VHB - Verband der Hochschullehrer für Betriebswirtschaft, German Academic Association of Business Research
- (wo)
-
Göttingen
- (wann)
-
2010
- DOI
-
doi:10.1007/BF03342714
- Handle
- URN
-
urn:nbn:de:0009-20-25039
- Letzte Aktualisierung
- 10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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Objekttyp
- Artikel
Beteiligte
- Scholze, Andreas
- VHB - Verband der Hochschullehrer für Betriebswirtschaft, German Academic Association of Business Research
Entstanden
- 2010
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