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Discounting methods and personal taxes
Author(s) -
Dempsey Michael
Publication year - 2019
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/eufm.12157
Subject(s) - economics , valuation (finance) , personal income , debt , discounting , cash flow , tax deferral , equity (law) , miller , financial economics , microeconomics , monetary economics , finance , public economics , macroeconomics , tax reform , state income tax , ecology , biology , political science , gross income , law
We advance models of valuation that incorporate personal taxes. The models are general in allowing for uneven cash flows, changes in debt levels, and changes in the costs of equity and debt. The models are mutually consistent, are consistent with the CAPM, and are consistent with the Modigliani and Miller propositions allowing personal taxes.