Item Infomation
Title: | De and re-levering betas with risky debt |
Authors: | Marko Volker Krause |
Issue Date: | 2019 |
Publisher: | Springer Nature |
Citation: | https://doi.org/10.1007/s40685-018-0066-2 |
Series/Report no.: | Business Research, 2019, Volume 12, Issue 2, pp 703–720 |
Abstract: | De- and re-levering betas is important to obtain discount rates for assets that are not publicly traded. A de- and re-levering procedure is around for the case of risk-free debt. The procedure for risky debt is much less clear even under very simplifying assumptions. In this paper, I concretize and extend the procedure for deand re-levering of betas for companies with risky debt. I derive procedures for different assumptions on the taxation of a cancellation of debt (COD) and for different assumptions regarding the distribution of losses on interest and principal payments. With a tax on the COD I obtain known results. However, without taxes on a COD, the distribution of losses on interest and principal payments matters and equations differ markedly for different assumptions on the assignment of losses to interest and principal payments. Furthermore, using a procedure that does not fit the COD treatment is likely to lead to substantial deviations for de- and re-levered betas from their correct values. |
URI: | http://tailieuso.tlu.edu.vn/handle/DHTL/9408 |
Source: | https://doi.org/10.1007/s40685-018-0066-2 |
Appears in Collections: | Tài liệu mở |
ABSTRACTS VIEWS
9
VIEWS & DOWNLOAD
4
Files in This Item:
Bạn đọc là cán bộ, giáo viên, sinh viên của Trường Đại học Thuỷ Lợi cần đăng nhập để Xem trực tuyến/Tải về
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.