| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 9731508 | The Quarterly Review of Economics and Finance | 2005 | 4 Pages |
Abstract
Fernandez [2004; The value of tax shields is NOT equal to the present value of tax shields. Journal of Financial Economics, 73, 145-165] claims to derive a formula for the valuation of debt tax shields for firms with cash flows that grow perpetually at a constant rate. We show that his formula is incorrect.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Paul Fieten, Lutz Kruschwitz, Jörg Laitenberger, Andreas Löffler, Joseph Tham, Ignacio Vélez-Pareja, Nicholas Wonder,