Browsing by Subject "Financial leverage"
Now showing items 1-7 of 7
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A Capital Structure Model (CSM) with Tax Rate Changes
(Washburn University. School of Business, 2014-08-1)Perpetuity gain to leverage (GL) research originates in Modigliani and Miller (1963) and was extended by Miller (1977) to incorporate personal taxes. This research analyzes GL when issuing debt to retire unlevered equity. ... -
Capital Structure Model (CSM): Correction, Constraints, and Applications
(Washburn University. School of Business, 2017-12-1)We extend the Capital Structure Model (CSM) research by performing the following tasks. First, we offer a correction on the corporate tax rate adjustment found in the break-through concept of the levered equity growth rate ... -
A Capital Structure Model with Growth
(Washburn University. School of Business, 2010-02-1)This paper broadens perpetuity gain to level (GL) research by analyzing the role of growth within the capital structure model (CSM) formalized by Hull (2007). We contrast the cost of using internal equity versus external ... -
Influence of Tax Rates on Ownership Type : Debt Choice, Valuation, and Leverage Gain
(Washburn University. School of Business, 2018-06-1)After assigning the same before-tax cash flows and costs of borrowing, we examine the influence of tax rates on ownership type by computing valuation and leverage gain outcomes for debt choices. After determining the optimal ... -
Leverage Borrowing Rates, Tax Rates And Growth Rates
(Washburn University. School of Business, 2005-12-1)This paper extensively broadens the perpetuity gain to leverage (GL) equations of Modigliani and Miller (1963) and Miller (1977) by developing a capital structure model (CSM) that contains a series of perpetuity GL equations ... -
Optimal Target Rating and C Corp Valuation
(Washburn University. School of Business, 2019-08-1)We use data from Damodaran (2019) as inputs in the Capital Structure Model (CSM) to compute firm value (VL) for debt-for-unlevered equity choices. Because each VL is matched to a debt-to-firm value ratio (DV) and a credit ... -
Pass-Through Valuation with Growth
(Washburn University. School of Business, 2018-11-1)We build on the nongrowth pass-through capital structure model (CSM) research by adding growth and changes in tax rates. We begin by deriving CSM pass-through gain to leverage (GL) equations for nongrowth and growth when ...