Synopsis
Understand how to value riskless cash flows through the lens of arbitrage and tax shields. This edition explains how the present value of a stream of riskless cash flows can be seen as the minimal amount needed to replicate those flows with riskless securities, using ideas about after‑tax rates and the role of tax shields.
In clear terms, you’ll learn how an equivalent loan constructed with riskless debt can set a lower bound on value. The discussion covers how after‑tax rates, the term structure, and the use of pure discount bonds affect present value calculations. It also compares the after‑tax approach to other valuation methods and shows how tax shields influence the perceived value of cash flows from a project.
- How riskless cash flows are valued using after‑tax rates and tax shields
- When the term structure is uniform versus when rates vary over time
- How pure discount bonds can replicate cash flows under uncertainty
- Connections to adjusted present value concepts and practical implications for valuation
Ideal for readers seeking a rigorous, finance‑focused view of present value and capital budgeting under riskless assumptions.
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Calculating the Present Value, of Riskless Cash Flows (Classic Reprint)
impression à la demandeVendeur : Forgotten Books, London, Royaume-Uni
Évaluation du vendeur 4 sur 5 étoiles
Paperback. Etat : New. Print on Demand. This book centers around the fundamental methods of valuing riskless cash flows after accounting for taxes. The author examines how to calculate present values for riskless cash flows by exploring two methods: discounting at the risk-free interest rate before taxes or after. Through the use of arbitrage arguments, the author demonstrates that the minimal present value for riskless cash flows should be calculated using the after-tax risk-free rate. The author maintains that firms can create an equivalent loan with riskless debt to offset the project's riskless cash inflows. This equivalent loan is feasible and does not result in variations to the firm's riskless net debt, establishing a lower bound on the cash flow's present value. The author highlights that discounting at the after-tax risk-free rate yields the lowest value for the cash flow. This book contributes to the ongoing discussion of debt financing and capital budgeting, providing a framework for more accurate valuation. Its insights enhance our understanding of risk assessment in financial decision-making, making it valuable for investors, financial managers, and students seeking to navigate the complexities of valuing riskless cash flows. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. N° de réf. du vendeur 9781332253760_0
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Calculating the Present Value, of Riskless Cash Flows Classic Reprint
Vendeur : PBShop.store US, Wood Dale, IL, Etats-Unis
Évaluation du vendeur 5 sur 5 étoiles
PAP. Etat : New. New Book. Shipped from UK. Established seller since 2000. N° de réf. du vendeur LW-9781332253760
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EUR 21,72
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Expédition nationale : Etats-Unis
Expédition nationale : Etats-Unis
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Calculating the Present Value, of Riskless Cash Flows Classic Reprint
Vendeur : PBShop.store UK, Fairford, GLOS, Royaume-Uni
Évaluation du vendeur 5 sur 5 étoiles
PAP. Etat : New. New Book. Shipped from UK. Established seller since 2000. N° de réf. du vendeur LW-9781332253760
Acheter neuf
EUR 23,94
Expédition à EUR 3,81
Expédition depuis Royaume-Uni vers Etats-Unis
Expédition depuis Royaume-Uni vers Etats-Unis
Quantité disponible : 15 disponible(s)