Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/wiley/estimating-the-tax-advantage-of-corporate-debt-DhVdIU5rPV
References (8)
-
Sasser We, Leonard Fs (1980)
Let first-level supervisors do their job.Harvard business review, 58 2
-
Douglas Joines (1981)
Estimates of Effective Marginal Tax Rates on Factor IncomesThe Journal of Business, 54
-
D. Jorgenson, A. Auerbach (1980)
Inflation-Proof Depreciation of AssetsHarvard Business Review, 58
-
R. McDonald (1982)
Government Debt and Private Leverage: An Extension of the Miller TheoremNBER Working Paper Series
-
(1984)
Capital Structure Puzzle -
H. DeAngelo, Ronald Masulis (1980)
Optimal Capital Structure Under Corporate and Personal TaxationERN: Personal Income & Other Non-Business Taxes & Subsidies (Topic)
-
Nicholas Gonedes (1981)
Evidence on the "Tax Effects" of Inflation under Historical Cost Accounting MethodsThe Journal of Business, 54
-
J. Cordes, S. Sheffrin (1981)
TAXATION AND THE SECTORAL ALLOCATION OF CAPITAL IN THE U.S.National Tax Journal, 34
- Publisher
- Wiley
- Copyright
- 1983 The American Finance Association
- ISSN
- 0022-1082
- eISSN
- 1540-6261
- DOI
- 10.1111/j.1540-6261.1983.tb03628.x
- Publisher site
- See Article on Publisher Site
Abstract
ABSTRACT This paper presents estimates of the effective tax value of incremental interest deductions for corporations taking into account that they may not be able to utilize all their interest deductions fully because of either insufficient taxable income or the availability of nondebt tax shields. After describing particular features of the tax code which may drive a wedge between statutory and effective tax rates for debt finance, we present estimates using the Treasury Corporate Tax Model of effective tax rates for a variety of industry groupings. Our estimates suggest that the after‐tax cost of debt varies widely across industries.
Journal
The Journal of Finance – Wiley
Published: Mar 1, 1983