di-0451-e

Dt 1 kut kdt 1 t et 1 kut rf t ecft dt 1 ku rf

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Unformatted text preview: = βu + Ku − D ( βu − βd) E DKdT E+D Ku WACCBT Myers (1974) Miles-Ezzell (1980) Ke = Ku + Vu - E (Ku − Kd) E Ke = Ku + D ⎡ TKd ⎤ ( Ku − Kd ) ⎢1 ⎥ E ⎣ 1 + Kd ⎦ β L = βu + Vu - E ( βu − βd) E β L = βu + D ⎡ TKd ⎤ ( βu − βd) ⎢1 ⎥ E ⎣ 1 + Kd ⎦ Ku − VTS(Ku - Kd) + DKdT E+D Ku − Ku − VTS(Ku - Kd) E+D Ku − VTS ECFt\\Ku PV[Ku; T D Kd] ECFt - Dt-1 (Kut - Kdt) PV[Kd; T D Kd] ECFt - (Vu-E) (Kut - Kd t) FCFt\\Ku ECFt\\RF FCFt +T D t-1 Kdt ECFt - Dt-1 (Kut - Kdt) - Et-1 (Kut - RF t) FCFt +T D Kd +VTS (Ku -Kd) ECFt - (Vu-E) (Kut - Kd t) – – Et-1 (Kut - RF t) FCFt\\RF FCFt +T D t-1 Kdt - (Et-1 + Dt-1)(Kut - RF t) FCFt +T D Kd +VTS (Ku -Kd) – (Et-1 + Dt-1)(Kut - RF t) DKdT 1 + Ku E + D 1 + Kd 0 DKdT (Ku - Kd) E + D (1 + Kd 0 ) PV[Ku; T D Kd] (1+Ku)/(1+Kd) ECF − D(Ku − Kd ) 1 + Kd(1 - T) (1 + Kd 0 ) FCF +T D Kd (1+Ku) / (1 + Kd) 1 + Kd(1 - T) – (1 + Kd 0 ) – Et-1 (Kut - RF t) FCF +T D Kd (1+Ku) / (1 + Kd) – – (Et-1 + Dt-1)(Kut - RF t) ECF − D(Ku − Kd ) IESE Business School-University of Navarra - 21 Appendix 2 (continued) Miller Ke ßL D Ke = Ku + [Ku − Kd(1 − T)] E β L = βu + D TKd D ( βu − βd) + E E PM Ku WACC WACCBT VTS ECFt\\Ku FCFt\\Ku ECFt\\RF FCFt\\RF DKdT E+D 0 ECFt - Dt-1 [Kut - Kdt(1-T)] FCFt ECFt - Dt-1 [Kut - Kdt(1-T)] – – Et-1 (Kut - RF t) FCFt – (Et-1 + Dt-1)(Kut - RF t) Ku + Modigliani-Miller Ke ßL WACC WACCBT VTS ECFt\\Ku FCFt\\Ku ECFt\\RF FCFt\\RF D VT S K e = Ku + [Ku − Kd(1 - T) - (Ku - g)* E D βL = βu + D T K d VT S ( K u - g ) [ βu − βd +* E PM D PM D Ku - (Ku - g) VTS * (E + D) DKu - (Ku - g)VTS + DTKd * E+D With-cost-of-leverage Ke = Ku + D [Ku(1 − T) + KdT − R F ] E β L = βu + D ( βu(1 - T) − Tβd) E D(KuT − Kd + R F ) E+D D[(Ku − Kd )T + R F − Kd)] Ku − E+D PV[Ku; D (KuT+ RF- Kd)] ECFt - Dt-1 [Kut (1-T)+KdtT -RF t] FCFt + Dt-1 [Kut T - Kdt + RF t] ECFt - Dt-1 [Kut(1-T)+ KdtT -RF t] – Et-1 (Kut - RF t) FCFt + Dt-1 [Kut T - Kdt + RF t] – – (Et-1 + Dt-1)(Kut - RF t) Ku − Practitioners’ Ke = Ku + D (Ku − R F ) E β L = βu + Ku - D D βu E R F − Kd(1 − T ) E+D Ku + D Kd − R F E+D PV[RF; T D RF] PV[Ku; T D Kd - D(Kd- RF)] ECFt -Dt-1[Kut - Kdt(1-T) -(Ku-g)VTS/D]* FCFt + Et-1 Ku + (Ku-g)VTS * ECFt - Dt-1 (Kut - RF t) FCFt + Dt-1 [RF t -Kdt (1-T)] ECFt -Dt-1[Kut - Kdt(1-T) -(Ku-g)VTS/D] – – Et-1 (Kut - RF t)* FCFt + Et-1 Ku + (Ku-g)VTS – – (Et-1 + Dt-1)(Kut - RF t)* ECFt - (Et-1 + Dt-1) (Kut – RF t) * Valid on...
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