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Authordc.contributor.authorVelez-Pareja, Ignacio 
Authordc.contributor.authorTham, Joseph es_CL
Authordc.contributor.authorFernández, Viviana es_CL
Admission datedc.date.accessioned2007-12-17T16:09:16Z
Available datedc.date.available2007-12-17T16:09:16Z
Publication datedc.date.issued2005
Cita de ítemdc.identifier.citationRevista Estudios de Administraciónen
Identifierdc.identifier.urihttps://repositorio.uchile.cl/handle/2250/127300
Abstractdc.description.abstractWhen discounting free-cash flows (FCF) at the Weighted Average Cost of Capital (WACC), we assume that the cost of debt is the market, unsubsidized rate. With debt at the market rate and perfect capital markets, debt only creates value in the presence of taxes through the tax shield. In some cases, the firm may be able to obtain a loan at a rate that is below the market rate. With subsidized debt and taxes, there would be a benefit to debt financing, and the unleveraged and leveraged values of the cash flows would differ. The benefit of lower tax savings are offset by the benefit of the subsidy. These two benefits have to be introduced explicitlyen
Lenguagedc.language.isoenen
Publisherdc.publisherJorge Gregoireen
Seriedc.relation.ispartofseriesVolumen 12en
Keywordsdc.subjectAdjusted present valueen
Títulodc.titleAdjustment of the WACC with Subsidized Debt in the Presence of Corporate Taxes: The Finite-Horizon Caseen
Document typedc.typeArtículo de revista


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