We consider the tax advantage of an increase in the firms leverage under the German tax code. The analysis is performed (i) for the case of a given investment and future dividend policy and (ii) to decide on the relative tax advantage of debt versus equity for funding new investments. We start...

We consider the tax advantage of an increase in the firms leverage under the German tax code. The analysis is performed (i) for the case of a given investment and future dividend policy and (ii) to decide on the relative tax advantage of debt versus equity for funding new investments. We start...

In diesem Aufsatz werden die adäquaten durchschnittlichen Kapitalkosten zur Bewertung von Unternehmen mittels des WACC-Verfahrens für den Fall bestimmt, dass der erwartete Cash flow mit einer konstanten Rate wächst und dieses Wachstum durch eine teilweise Thesaurierung der Gewinne finanziert...

We determine the weighted average cost of capital (WACC) to be used in the valution of a firm if cash flows grow and the plow black ratio is positive. This is done under consideration of the german tax system. Corporate taxes and personal taxes of investors are integrated. It is shown that the...