Die arbitragefreie Adjustierung von Diskontierungssätzen bei einfacher Gewinnsteuer

Discontinuous financing based on market values and the value of tax shields

“…6 The restriction on corporate taxes allows us to focus on the effects of the refinancing frequency without mixing up with other issues subject to an introduction of personal taxes, e.g., the impact of the dividend distribution policy and the effects of personal taxes on asset pricing under the risk-neutral probability measure. See Löffler (2006), p. 111, andRapp andSchwetzler (2008), for an extensive discussion. 7 The defined process (1) could be generalized to weak auto-regressive cash flows with a time-dependent growth rate g t .…”

“…This can be interpreted as the choice of a refinancing policy assuming an adjustment interval tending to infinity; the firm never adjusts the level of debt according to potential changes in e V L t . Given a constant debt level, the value of the tax shield is given by 9 As discussed by Sick (1990), Kruschwitz et al (2005), Rapp (2006), Cooper and Nyborg (2008), Molnár and Nyborg (2013), and Krause and Lahmann (2016), the discount rate for tax shield valuation depends on the assumptions on the tax treatment of writing down debt in case of a possible default and on the loss distribution. Kruschwitz et al (2005) assuming interest prioritization and a taxation of a possible cancellation of indebtedness (COD) have shown that the discount rate is equal to r f , i.e., r D ¼ r f (see additionally Cooper and Nyborg (2008), p. 368).…”

“…We explicitly distinguish between the cost of debt and the risk-free rate (see Footnote 9). Several articles (e.g., Rapp 2006) discuss that Miles and Ezzell actually assumed risk-free debt. 27 For a discussion of the associated inconsistencies of Eq.…”

Taxes and the choice between risky and risk-free debt: on the neutrality of credit default taxation

“…Our aim is to generalize the characteristics of credit default neutral tax systems that enable the valuation of corporations under the assumption of risk-free debt but nevertheless without a valuation bias. This enables us to identify and explain the differences between the approaches of Homburg et al (2004), Rapp (2006) and Kruschwitz et al (2005).…”

“…deductibility of interest, tax liability of debt relief gain). Homburg et al (2004) and Rapp (2006) criticize valuation concepts that assume risk-free debt. They come to the conclusion that disregarding the default risk can lead to a considerable bias in the value of a corporation.…”