Through the legislation of notional interests, the Belgian government aim at reducing the tax discrimination between equity funding and debt. What is the impact of such a legislation on firms' cost of capital? The effective taxation literature - and its key parameter, called the cost of capital - provides us with a useful framework in order to answer these questions.
|Effective start/end date||1/01/05 → 30/06/06|
- cost of capital
- tax discrimination
- effective taxation
- Notional interests