Discounting Methods and Personal Taxes

15 Pages Posted: 6 Mar 2019

Multiple version iconThere are 2 versions of this paper

Date Written: March 2019


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.

Keywords: valuation, taxes, tax system, CAPM, WACC

Suggested Citation

Dempsey, Michael J., Discounting Methods and Personal Taxes (March 2019). European Financial Management, Vol. 25, Issue 2, pp. 310-324, 2019, Available at SSRN: or

Michael J. Dempsey (Contact Author)

Ton Duc Thang University (TDTU) ( email )

District 7
Ho Chi Minh City, 3001

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