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Taxes and Value: The Ongoing Research and Analysis Relating to the S Corporation Valuation Puzzle

Taxes and Value: The Ongoing Research and Analysis Relating to the S Corporation Valuation Puzzle

Seven years in the making, Taxes and Value: The Ongoing Research and Analysis Relating to the S Corporation Valuation Puzzle guide provides a substantive contribution to the controversial issue of how to value pass-through entities. Authors Nancy Fannon and Keith Sellers present the findings of decades of academic research on the impact of taxes on firm value and demonstrate that historical market returns impound the effects of shareholder taxes. This research is used to demonstrate how these returns can be adjusted to estimate a cost of capital appropriate for the valuation of a pass-through entity. View an excerpt of the book


About the Authors
Acknowledgments
Introduction
Chapter 1. The Importance of Matching the Cost of Capital With the Income Stream
Chapter 2. Introduction to the Concept of Implicit Taxes
Chapter 3. An Explanation of the Implications of Shareholder Taxes on the Corporate Cost of Capital
Chapter 4. Literature Review: Research on the Effect of Taxes Embedded in the Cost of Capital
Chapter 5. Impact of Prior Research on Private-Company Valuation
Chapter 6. Foundation for Cash Flow-Based Models
Chapter 7. Research Related to the Magnitude of Taxes Embedded in the Cost of Capital
Chapter 8. An Alternative Approach to the Valuation of Pass-Through Entities
Appendix A. Suggested Areas for Further Research
Appendix B. Evolution of Pass-Through Entity Valuation
Appendix C. Understanding the Basics of the Cost of Capital
Appendix D. C Corporation Versus S Corporation Transaction Pricing
Appendix E. Digests of Cases Addressing Pass-Through Entity Issues
Appendix F. Bibliography
Appendix G. Links to Selected Academic Research Papers

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