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Couch et al., 2012 - Google Patents

Interest tax shields: A barrier options approach

Couch et al., 2012

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Document ID
14136261541408887987
Author
Couch R
Dothan M
Wu W
Publication year
Publication venue
Review of quantitative finance and accounting

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Snippet

There is a link between barrier options and tax shields of interest expense. We combine this link with a traditional valuation approach, to present practical valuation formulas for interest tax shields in three debt scenarios with risk of default:(1) constant debt,(2) delayed debt, and …
Continue reading at papers.ssrn.com (PDF) (other versions)

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    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
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