Abstract
Through the legislation of notional interests, the Belgian public authorities 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 this question. We assume the case of a firm financed by an individual, both residing in Belgium.
Original language | French |
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Pages (from-to) | 98-101 |
Number of pages | 4 |
Journal | Revue bancaire et financière |
Volume | 2 |
Publication status | Published - 2006 |