Franklin, Lesley and Tuck, Penelope. (2001) Tax complexity and the cost of debt. Journal of Applied Accounting Research, Vol.6 (No.2). pp. 13-29. ISSN 0967-5426

Full text not available from this repository.

Abstract

Now that debt has replaced equity as the preferred source of finance for many UK companies, the correct calculation of the cost of debt assumes even greater importance than it has done formerly. While financial management textbooks are in agreement on how to calculate the pre-tax cost of debt, there is much less agreement on how to calculate the after tax cost of debt. The different approaches taken by different authors leave students and practitioners confused and unsure as to how they should proceed. This article explores the calculation of the after tax cost of debt in order to help both students and practitioners to understand the interaction of tax and debt in the current UK environment and to be aware of the limitations of the various simplifications which are made, explicitly or implicitly, in the textbooks.

Item Type:	Journal Article
Subjects:	J Political Science > JS Local government Municipal government
Divisions:	Faculty of Social Sciences > Warwick Business School > International Centre for Governance & Public Management Faculty of Social Sciences > Warwick Business School
Journal or Publication Title:	Journal of Applied Accounting Research
Publisher:	Emerald Group Publishing Ltd
ISSN:	0967-5426
Date:	2001
Volume:	Vol.6
Number:	No.2
Number of Pages:	17
Page Range:	pp. 13-29
Identification Number:	10.1108/96754260180001026
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
URI:	http://wrap.warwick.ac.uk/id/eprint/45087

Request changes to a record

Actions (login required)

View Item