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Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields

Tham, Joseph - 2011

We present the derivation of cost of capital under the assumption of risky tax shields discounted with the cost of levered equity. We show that the formulation is consistent and is derived from basic financial principles. This formulation is valid for finite cash flows and non growing...

Persistent link: https://www.econbiz.de/10013133138

Risky Tax Shields and Risky Debt : A Monte Carlo Approach

Velez-Pareja, Ignacio - 2010

I identify three sources of risk for the tax shields: two of them associated to the risk of debt and one associated to … the operating risk. I present a set of conditions for defining risky debt associated to cash flow and not to accounting … risk of tax shields is Ku, the unlevered cost of equity …

Persistent link: https://www.econbiz.de/10013141867

Risky Tax Shields : An Exploratory Study

Velez-Pareja, Ignacio - 2013

This article (1) identifies three sources of risk for tax shields (TS): Two of them are associated with debt risk and … one is associated with operating risk. (2) A set of conditions for defining risky debt associated with cash flow, not with … suggests that it is not reasonable to define the risk of TS as measured by a single discount rate, but rather as a mix of debt …

Persistent link: https://www.econbiz.de/10013094155

EVA Performance Measurement is Faulty : So You May Be Persuaded to Switch to a Robust OEVA-TEVA Alternative

Ibragimov, Rauf - 2019

and total performance with the two nested metrics, Operating EVA (OEVA) and Total EVA (TEVA). OEVA applies the risk of …

Persistent link: https://www.econbiz.de/10012905410

Mejora de la Medición del Desempeño con el vea (EVA) Operativo Y Total (Sharpening Performance Measurement with the Operating and Total EVA)

Ibragimov, Rauf - 2013

concurrently with the two metrics, the Operating EVA and the Total EVA. Operating EVA is calculated by applying the risk of assets …

Persistent link: https://www.econbiz.de/10013084110

VAIC : New Financial Performance Metric and Valuation Tool

Ibragimov, Rauf - 2013

standard discounted cash flow approach; this equivalence is formally proved under certain assumptions regarding the risk of tax …

Persistent link: https://www.econbiz.de/10013091020

Toward Better Measurement of Financial Performance : A Robust OEVA-TEVA Alternative to Biased EVA

Ibragimov, Rauf - 2019

We demonstrate analytically and illustrate with examples that the conventional measures of the residual operating income such as the Economic Value Added (EVA) are biased by design and so may yield a misleading assessment of financial performance. Fundamentally, the magnitude of the measurement...

Persistent link: https://www.econbiz.de/10012865144

Value of Debt Tax Shields in Colombia : An Empirical Study

Salas-Pérez, Rafael - 2020

The Spanish version of this paper can be found http://ssrn.com/abstract=1899685This paper estimates the value of tax shields, using the discounted cash flow method for 23 major non financial firms listed in the Bolsa de Valores de Colombia (Colombian Stock Exchange) between 2001 and 2010. Our...

Persistent link: https://www.econbiz.de/10012857389

Valor de los Ahorros en Impuestos por Deuda en Colombia : Un Estudio Empírico (Value of Debt Tax Shields in Colombia: An Empirical Study)

Salas-Pérez, Rafael - 2020

The English version of this paper can be found at http://ssrn.com/abstract=1919305This paper estimates the value of tax shields, using the discounted cash flow method for 23 major non financial firms listed in the Bolsa de Valores de Colombia (Colombian Stock Exchange) between 2001 and 2010. Our...

Persistent link: https://www.econbiz.de/10012857400

Sharpening Performance Measurement with the Operating and Total EVA

Ibragimov, Rauf - 2018

concurrently with the two metrics, the Operating EVA and the Total EVA. Operating EVA is calculated by applying the risk of assets …

Persistent link: https://www.econbiz.de/10012936046