Much Ado about Nothing: A Non-technical Comment on the Present Value of the Tax Shield (PVTS)

2002 ◽  
Author(s):  
Joseph Tham ◽  
Ignacio Velez-Pareja
Keyword(s):  
Present Value ◽  
Much Ado About Nothing ◽  
Tax Shield

scholarly journals Tax Code Revision and The Value of Tax-Deductible Debt

1970 ◽  
Vol 14 (1) ◽  
pp. 19-31
Author(s):  
William Randolph
Keyword(s):  
Cost Of Capital ◽  
Weighted Average ◽  
Competitive Environment ◽  
Tax Revenue ◽  
Present Value ◽  
Corporate Tax ◽  
Tax Shield ◽  
Maximum Value ◽  
Interest Expense ◽  
Theoretical Amount

This paper examines a tax policy change that would eliminate the interest expense as a tax-deductible item for businesses. We analyze this change using a tax revenue neutral setting in a Modigliani-Miller world. The analysis uses two scenarios to compare the change to the present U.S. Tax Code. Scenario one assumes a non-competitive environment with sticky prices. Scenario two assumes that companies or industries with low leverage would cut prices instead of realizing excess profits. The reduction in prices will redistribute the present value of the corporate tax shield from the stockholder to the consumer. Using the Modigliani-Miller methodology for valuation, the maximum value (equivalent to theoretical value in this case) of the tax shield is approximately $712 billion. The actual value is probably less than half the theoretical amount. Under either scenario, the weighted average cost of capital increases for levered firms.

ANALISIS KELAYAKAN FINANSIAL INDUSTRI PENGOLAHAN KECAP ANEKA GUNA DI KOTA LANGSA

2017 ◽  
Vol 2 (1) ◽  
pp. 21-30
Author(s):  
Muhammad Jamil ◽  
Januari Frizki Bella
Keyword(s):  
Net Present Value ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Present Value ◽  
Internal Rate

Adapun tujuan dari Penelitian ini adalah untuk mengetahui kelayakan usaha industri pengolahan kecap Aneka Guna apabila dilihat dari segi kelayakan finansial. Penelitian ini menggunakan metode studi kasus. Lokasi penelitian yaitu di Kota Langsa dengan pertimbangan bahwa lokasi tersebut merupakan daerah yang terdapat industri pengolahan kecap asin dan mudah di jangkau oleh penulis. Waktu penelitian dilaksanakan pada Bulan Juni - Oktober 2014. Tenaga kerja yang digunakan berjumlah 27 orang, 20 tenaga kerja pria dan 7 orang tenaga kerja wanita. Jumlah penggunaan tenaga kerja selama 5 tahun sebesar 3759 HKP. Total biaya produksi yang dikeluarkan oleh pengusaha dalam usaha pembuatan kecap didaerah penelitian selama 5 tahun adalah Rp. 2.076.988.000,-. Pendapatan kotor yang diperoleh pengusaha sebesar Rp. 8.199.690.000,- dan pendapan bersih yang diperoleh sebesar Rp. 6.122.702.000,-                 Kota Langsa hanya memiliki 1 pengusaha pengolahan kecap asin dan dijadikan sebagai pengusaha sampel yaitu usaha industri pengolahan kecap asin Aneka Guna. Hasil perhitungan di peroleh Net Present Value (NPV) sebesar Rp. 263.281.290 (lebih besar dari nol), sedangkan Internal Rate of Return (IRR) sebesar 84% lebih besar dari tingkat bunga yang berlaku (D.F. = 18%), sedangkan Net B/C Ratio sebesar 3,27 (lebih dari pada 1) dan Pay Back Priod (PBP) 1 Tahun 6 Bulan (lebih kecil dari umur ekonomis).  

The Pornographer and McGahern's Allusive Practice

2017 ◽  
Vol 47 (2) ◽  
pp. 281-297
Author(s):  
Tom Walker
Keyword(s):  
Social Practice ◽  
Literary Tradition ◽  
The Novel ◽  
Present Value ◽  
The Past

Allusions to other texts abound in John McGahern's fiction. His works repeatedly, though diffidently, refer to literary tradition. Yet the nature of such allusiveness is still unclear. This article focuses on how allusion in The Pornographer (1979) is depicted as an intellectual and social practice, embodying particular attitudes towards the function of texts and the knowledge they represent. Moreover, the critique of the practice of allusion that the novel undertakes is shown to have broader significance in terms of McGahern's whole oeuvre and its evolving attempts to salvage something of present value from the literature of the past.

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