Free Cash Flow (FCF) was adopted in the late 1980s as a financial tool to evaluate the firm and its individual projects. We question the procedure of calculating the FCF where a significant portion of Current Liabilities is offset against Current Assets, thereby creating the hybrid asset Net...

Recent empirical findings by Allan and Clark (NBER WP1677, 1985) show that the pension wealth of union beneficiaries is dramatically greater than that of nonunion beneficiaries. Other findings by these and other authors show that union pension plans are more likely to be underfunded. Ippolito...

Traditional models of corporate interior optimum leverage rely on institutional schemes such as taxes, bankruptcy,and agency costs. Theories of leverage indifference in the presence of risky debt depend on various features of perfect and complete markets and on the assumption that all investors...

Examines accepted methods of calculating the effect of deferred realization on the effective rate of capital gains tax paid by common shareholders. Proposes a valuation-based method that is designed for growth stocks where gains are accrued gradually and realized in lump sums.

Coyne, Fabozzi, and Yaari reply to Kiefer's comments about effective capital gains tax rates.