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WACC and a Generalized Tax Code

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  • Husmann, Sven
  • Kruschwitz, Lutz
  • Löffler, Andreas

Abstract

We extend the WACC approach to a tax system having a firm income tax and a personal income tax of the investor as well. We use an artificial tax system incorporating most of the G-7 national tax codes as for example the classical or the imputation systems. On our website (www.wacc.de) WACC formulas according to many of the actual G-7 national tax codes can be found.

Suggested Citation

  • Husmann, Sven & Kruschwitz, Lutz & Löffler, Andreas, 2001. "WACC and a Generalized Tax Code," Hannover Economic Papers (HEP) dp-243, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-243
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    File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-243.pdf
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    References listed on IDEAS

    as
    1. DeAngelo, Harry & Masulis, Ronald W., 1980. "Optimal capital structure under corporate and personal taxation," Journal of Financial Economics, Elsevier, vol. 8(1), pages 3-29, March.
    2. Miller, Merton H, 1977. "Debt and Taxes," Journal of Finance, American Finance Association, vol. 32(2), pages 261-275, May.
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    Keywords

    Valuation; Tax; WACC;
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