Stabsseminar ved Diderik Lund

Dr. Diderik Lund fra Universitetet i Oslo holder stabsseminar ved Institutt for foretaksøkonomi fredag 2. februar.

31.01.2001 - Elin F. Styve

Tema er Taxation, Uncertainty, and the Cost of Equity for a Multinational Firm

Tid og sted:
Fredag 2. februar, kl. 1215-1330 i aud. E

Abstract
From a CAPM-type model the cost of equity is derived for a firm
operating under vari-ous foreign tax systems. The firm's shares are
traded in a market which is unaffected by these systems. The cost of capital depends on the foreign tax system, even for fully equity
financed projects. This is neglected in much of the literature. For a corporate income tax the main factor which reduces the cost of equity is the depreciation deduc-tions. Compared with a neutral cash flow tax, this reduces the cost of equity because it acts as a loan from the firm to the government.

Keywords: Cost of equity, taxation, weighted average cost of capital, uncertainty

JEL classification numbers: G31, H25
Paper kan hentes her

Kontaktperson:
Hans K. Hvide (9283)