Discounting Methods and Personal Taxes
23 Pages Posted: 16 Jan 2019 Last revised: 16 Feb 2021
Date Written: May 10, 2020
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 and are consistent with the CAPM and Modigliani and Miller propositions allowing personal taxes.
Keywords: valuation, taxes, tax system, CAPM, WACC
JEL Classification: G12, G31, G38
Suggested Citation: Suggested Citation