2013
DOI: 10.1080/09603107.2013.829199
|View full text |Cite
|
Sign up to set email alerts
|

A simple approach to valuing a multinational firm's tax shields

Abstract: We consider a multinational firm that seeks to maximize its total amount of interest tax shield while following a constant debt ratio policy on a global level. The firm's total interest tax shield can then be considered as a piecewise-linear increasing function that is concave with respect to the firm's value. As a result, the expected interest tax shield can be much safer than the firm's free cash flow, depending on the firm's current value. With a simple no-arbitrage model, we derive the discount factor to a… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

0
0
0

Year Published

2016
2016
2016
2016

Publication Types

Select...
2

Relationship

0
2

Authors

Journals

citations
Cited by 2 publications
references
References 19 publications
0
0
0
Order By: Relevance