Author details

ɡ Growth rate

HP Harris-Pringle model

ku Unlevered cost of capital

Mi Pricing kernel for the time i MM Modigliani-Miller model

PPi Principal payment for time i

PV(TS) Present value of tax shield

Si Value of the stock for time i

Si � <sup>1</sup> Value of the stock for time i � 1

TL Tax paid by levered company

TU Tax paid by unlevered company

VL Value of levered company

ROI Return on investment

PV[ΔDi] Present value of debt change for time i

MBO Management buyout ME Miles-Ezzell model

OI Other income

rf Risk-free rate

rP Risk premium

T Corporate tax rate

TS Tax shield

Ii Interest for time i

kc Coupon rate kd Cost of debt ke Cost of equity

GL Present value of tax paid by levered company

42 Financial Management from an Emerging Market Perspective

GU Present value of tax paid by unlevered company

kTL Required return to tax in the levered company

kTU Required return to tax in the unlevered company

Tomas Kliestik\* and Lucia Michalkova

\*Address all correspondence to: tomas.kliestik@fpedas.uniza.sk

Department of Economics, Faculty of Operation and Economics of Transport and Communication, University of Zilina, Zilina, Slovakia
