The Brusov–Filatova–Orekhova Theory of Capital Structure: Applications in Corporate Finance, Investments, Taxation and Ratings

The book introduces and discusses the modern theory of the cost of capital and capital structure, the BFO theory, which replaces the theory of Nobel laureates Modigliani and Miller. It considers revenue fluctuations, tax payments, and interest on loans, and its impact on company value, cost of raising capital, dividend policy, and managerial decisions. It also develops new applications of the theory in various areas such as corporate finance, governance, investments, taxation, business valuations, and ratings.

Format: Hardback
Length: 769 pages
Publication date: 18 May 2023
Publisher: Springer International Publishing AG

The book introduces and discusses the modern theory of the cost of capital and capital structure, known as the BFO theory (Brusov-Filatova-Orekhova theory). This theory, which is valid for companies of arbitrary age, has replaced the theory of Nobel laureates Modigliani and Miller. The BFO 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, and the arbitrary frequency of interest on loans payments. The impact of these conditions on the company value, cost of raising capital, dividend policy, and managerial decisions is discussed. The book subsequently develops new applications of the BFO theory in several areas, including corporate finance, corporate governance, investments, taxation, business valuations, and ratings.

Dimension: 235 x 155 (mm)
ISBN-13: 9783031279287
Edition number: 1st ed. 2023