Suchergebnisse

Intro -- Preface -- Contents -- About the Authors -- Chapter 1: Introduction -- 1.1 Introduction -- References -- Part I: Corporate Finance -- Chapter 2: Capital Structure Theory: Past, Present, Future -- 2.1 Introduction -- 2.2 Basic Theories of Capital Structure -- 2.2.1 A Historical Point of View -- 2.2.2 The Empirical (Traditional) Approach -- 2.2.3 The Modigliani-Miller Theory -- 2.2.3.1 The Modigliani-Miller Theory with Taxes -- 2.2.3.2 The Modigliani-Miller Theory with Taxes -- 2.2.4 Modifications of Modigliani-Miller Theory -- 2.2.4.1 Hamada Model -- 2.2.4.2 The Cost of Capital Under Risky Debt -- 2.2.4.3 The Account of Corporate and Individual Taxes (Miller Model) -- 2.2.4.4 Alternative Expression for WACC -- 2.2.4.5 The Miles-Ezzell Model Versus the Modigliani-Miller Theory -- 2.3 Trade-Off Theory -- 2.3.1 Static Theory -- 2.3.2 Dynamic Theory -- 2.3.3 Proof of the Bankruptcy of the Trade-Off Theory -- 2.4 Accounting for Transaction Costs -- 2.5 Accounting for Asymmetries of Information -- 2.6 Signaling Theory -- 2.7 Pecking Order Theory -- 2.8 Behavioral Theories -- 2.8.1 Manager Investment Autonomy -- 2.8.2 The Equity Market Timing Theory -- 2.8.3 Information Cascades -- 2.9 Theories of Conflict of Interests -- 2.9.1 Theory of Agency Costs -- 2.9.2 Theory of Corporate Control and Costs Monitoring -- 2.9.3 Theory of Stakeholders -- 2.10 BFO Theory -- 2.10.1 Brusov-Filatova-Orekhova Theorem -- 2.11 BFO Theory and Modigliani-Miller Theory Under Inflation -- 2.12 BFO Theory for the Companies Ceased to Exist at the Time Moment n (BFO-2 Theory) -- 2.13 The Modigliani-Miller Theory with Advance Payments of Tax on Profit -- 2.14 The Modigliani-Miller Theory with Arbitrary Frequency of Payment of Tax on Profit -- 2.15 Generalization of the Modigliani-Miller Theory for the Case of Variable Profit.

The book introduces and discusses the modern theory of the cost of capital and capital structure - the BFO theory (Brusov-Filatova-Orekhova theory), which is valid for companies of arbitrary age and which replaced the theory of Nobel laureates Modigliani and Miller. The theory takes into account the conditions faced by companies operating in the real economy, such as revenue fluctuations; the arbitrary frequency of tax on profit payments (monthly, quarterly, semi-annual or annual payments), both for advance income tax payments and for payments at the end of the respective period; and the arbitrary frequency of interest on loans payments. The impact of these conditions on the company value, on the cost of raising capital, on the company's dividend policy and managerial decisions are discussed. The book subsequently develops new applications of the BFO theory in several areas such as corporate finance, corporate governance, investments, taxation, business valuations and ratings.

Introduction -- The Importance of Rating and the Disadvantages of Existing Rating Systems -- Part I Corporate Finance Theories used in Ratings and in Rating Methodologies -- Modern Theory of Capital Cost and Capital Structure: Brusov–Filatova–Orekhova Theory (BFO Theory) -- Modification of the Modigliani–Miller theory for the case of advance tax on profit payments -- Modern Theory of Capital Cost and Capital Structure: Brusov–Filatova–Orekhova Theory (BFO Theory) -- Part II Ratings and Rating Methodologies of Non–financial Issuers -- Application of the Modigliani–Miller Theory in Rating Methodology -- Application of the Modigliani–Miller Theory, Modified For the Case of Advance Payments of Tax on Profit, in Rating Methodologies -- Application of Brusov–Filatova–Orekhova theory (BFO theory) in Rating Methodology -- Part III Project Ratings -- Investment Models with Debt Repayment at the End of the Project and Their Application -- Investment Models with Uniform Debt Repayment and Their Application -- A New Approach to Ratings of the Long–Term Projects -- Ratings of the Investment Projects of Arbitrary Durations: New Methodology -- Ratings of Investment Projects of Arbitrary Duration with a Uniform Debt Repayment: a new approach -- Part IV New Meaningful Effects in Modern Capital Structure Theory (BFO Theory) Which Should be Accounting in Rating Methodologies -- The Golden Age of the Company (Three Colors of Company's Time) -- A "silver age" of the Companies. Conditions of existence of "golden age" and "silver age"effects` -- Inflation in Brusov–Filatova–Orekhova Theory and in Its Perpetuity Limit–Modigliani–Miller Theory -- A Qualitatively New Effect in Corporate Finance: Abnormal Dependence of Equity Cost of Company on Leverage Level -- The Impact of Taxing and Leverage in Evaluation of Capital Cost, Capitalization of the Company and Issued Ratings -- Recommendations to international rating agencies (Big Three (Standard & Poor's, Fitch and Moody's), European) and national ones (ACRA, Chinese etc.) -- Conclusions.

This monograph is devoted to a modern theory of capital cost and capital structure created by this book's authors, called the Brusov-Filatova-Orekhova (BFO) theory, and its application to the real economy. BFO theory promises to replace the traditional theory of capital cost and capital structure by Nobel laureates Modigliani and Miller. This new theory in particular, presents a possible explanation to the causes of the recent global financial crisis. The authors of the book describe the general theory of capital cost and capital structure that can be applied to corporations of arbitrary age (or with arbitrary lifetime) and investment projects with arbitrary duration. The authors illustrate their theory with examples from corporate practice and develop investment models that can be applied by companies in their financial operations. This updated second edition includes new chapters devoted to the application of the BFO theory in ratings, banking and other areas. The authors also provide a new approach to rating methodology highlighting the need for including financial flow discounting, the incorporation of rating parameters (in particular, financial ratios) into the modern theory of capital structure - BFO theory. This book aims to change our understanding of corporate finance, investments, taxation and rating procedures. The authors emphasize that the most used principles of financial management should be changed in accordance to BFO theory.--

This monograph is devoted to the modern theory of capital cost and capital structure and its application to the real economy. In particular, it presents a possible explanation to the causes of global financial crisis. The authors of the book modify the theory of Nobel Prize winners Modigliani and Miller to describe an alternative theory of capital cost and capital structure that can be applied to corporations with arbitrary lifetime and investment projects with arbitrary duration. The authors illustrate their theory with examples from corporate practice and develop investment models that can be applied by companies in their financial operations.