Comment on "The value of tax shields is NOT equal to the present value of tax shields"

Published

Journal Article

Fernandez [2004; The value of tax shields is NOT equal to the present value of tax shields. Journal of Financial Economics, 73, 145-165] claims to derive a formula for the valuation of debt tax shields for firms with cash flows that grow perpetually at a constant rate. We show that his formula is incorrect. © 2004 Board of Trustees of the University of Illinois. All rights reserved.

Full Text

Duke Authors

Cited Authors

  • Fieten, P; Kruschwitz, L; Laitenberger, J; Löffler, A; Tham, J; Vélez-Pareja, I; Wonder, N

Published Date

  • February 1, 2005

Published In

Volume / Issue

  • 45 / 1

Start / End Page

  • 184 - 187

International Standard Serial Number (ISSN)

  • 1062-9769

Digital Object Identifier (DOI)

  • 10.1016/j.qref.2004.07.004

Citation Source

  • Scopus