Articles liés à The Choice of Tax Shields’ Discount Rate on...

The Choice of Tax Shields’ Discount Rate on Firm Valuation: A Case Study - Couverture souple

Cordeiro Lopes, Ana Margarida

 
9783659869372: The Choice of Tax Shields’ Discount Rate on Firm Valuation: A Case Study
Couverture souple
ISBN 10 : 3659869376 ISBN 13 : 9783659869372
Editeur : LAP LAMBERT Academic Publishing, 2016

Synopsis

The author observed that there is still no consensus regarding the tax shields’ discount rates and found there a research topic. After reading in Luehrman (1997: 7) that “Academics agree that tax shields, (…), should be discounted at an “appropriate” risk-adjusted rate – that is, a rate that reflects riskiness. Unfortunately, they don’t agree how risky tax shields are.” Luehrman after stating that “A common expedient is to use the cost of debt as a discount rate”, says that even if the company affords the interest payments, it might not realize the tax shields. Then claims that “This suggests that tax shields are a bit more uncertain and so deserve a somewhat higher discount rate.” and in an ad hoc manner adds to the cost of debt 0.5% in order to obtain the rate that reflects the riskiness of tax shields. It was that controversy and this ad hoc solution of establishing the riskiness of tax shields that motivated her to search for a non-ad hoc solution for the computation of the tax shields’ discount rate and the main reason for this research. To study this controversial topic it was necessary to study a problematic case: the valuation of Cruz Vermelha Portuguesa-SGH, S.A.

Les informations fournies dans la section « Synopsis » peuvent faire référence à une autre édition de ce titre.

Présentation de l'éditeur

The author observed that there is still no consensus regarding the tax shields’ discount rates and found there a research topic. After reading in Luehrman (1997: 7) that “Academics agree that tax shields, (...), should be discounted at an “appropriate” risk-adjusted rate – that is, a rate that reflects riskiness. Unfortunately, they don’t agree how risky tax shields are.” Luehrman after stating that “A common expedient is to use the cost of debt as a discount rate”, says that even if the company affords the interest payments, it might not realize the tax shields. Then claims that “This suggests that tax shields are a bit more uncertain and so deserve a somewhat higher discount rate.” and in an ad hoc manner adds to the cost of debt 0.5% in order to obtain the rate that reflects the riskiness of tax shields. It was that controversy and this ad hoc solution of establishing the riskiness of tax shields that motivated her to search for a non-ad hoc solution for the computation of the tax shields’ discount rate and the main reason for this research. To study this controversial topic it was necessary to study a problematic case: the valuation of Cruz Vermelha Portuguesa-SGH, S.A.

Biographie de l'auteur

Ana Margarida Cordeiro Lopes earned a Master of Science in International Management at ISCTE-IUL, a Diplôme de l’Ecole Multinationale des Affaires at KEDGE Business School and a Bachelor degree in Law at Faculdade de Direito da Universidade de Lisboa.

Les informations fournies dans la section « A propos du livre » peuvent faire référence à une autre édition de ce titre.

Éditeur
LAP LAMBERT Academic Publishing
Date d'édition
2016
Langue
anglais
ISBN 10 
3659869376
ISBN 13 
9783659869372
Reliure
Broché
Nombre de pages
96
Coordonnées du fabricant
non disponible
Personne responsable
KreGa Onlinehandel GmbH
4950000000000
info@krega-onlinehandel.de

Birkenweg 31
Brakel
33034
Allemagne