Book Cover
Author Rao, Ramesh K. S.

Title A theory of the firm's cost of capital : how debt affects the firm's risk, value, tax rate, and the government's tax claim / Ramesh K.S. Rao, Eric C. Stevens
Published Hackensack, NJ : World Scientific, [2007]
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Description 1 online resource (xiv, 88 pages : illustrations)
Summary The cost of capital concept is widely used in business decision-making. The current theory and estimates for measurement of cost of capital are derived from the seminal Modigliani-Miller analyses. This book generalizes this framework to include non-debt tax shields (e.g., depreciation) and default considerations. It develops several new results and shows how better cost of capital and marginal tax rate estimates can be generated. The unified cost of capital theory presented in the book is illustrated graphically and with comprehensive numerical examples. This book will be of great interest to practicing managers, academics, governmental agencies and private companies that generate cost of capital estimates for public consumption
Notes Title from e-book title screen (viewed Feb. 27, 2008)
Bibliography Includes bibliographical references (pages 85-88) and index
Subject Capital assets pricing model.
Capital costs.
Corporate debt.
Corporations -- Finance.
Financial leverage.
Genre/Form Festschriften.
Form Electronic book
Author Stevens, Eric C., 1962-
ISBN 1281120987
9789812708373 (electronic bk.)
9812708375 (electronic bk.)