Kruschwitz, Lutz; Löffler, Andreas; Lorenz, Daniela; … - 2023 - Version as of October 13, 2023
This note incorporates wealth taxes in a simple asset valuation model based on discounted cash flows. Any valuation method requires an adjustment of pre-tax into post-tax costs of capital. By adopting the adjustment procedure proposed in previous literature, we show that arbitrage opportunities...