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Debt, Taxes and Leasing A Note
Author(s) -
BREALEY R. A.,
YOUNG C. M.
Publication year - 1980
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1980.tb02207.x
Subject(s) - miller , debt , equity (law) , economics , valuation (finance) , monetary economics , debt financing , financial economics , business , finance , political science , law , ecology , biology
This paper discusses the implications of Miller's paper “Debt and Taxes” for the valuation of leases. It shows that if Miller's equilibrium holds, leasing is only likely to dominate debt and equity for companies in temporary nontaxpaying positions.