COST OF CAPITAL AND TAXES IN NO TAX SYSTEM INTEGRATED INTEGRATED IN ONE: Generalization of the model

In this paper, the authors obtain an expressions for both the tax benefit of debt and the return on equity, when the company and the debt grow, under the non-integrated tax system prevailing in the USA. Then, they develop the equivalent expressions under a totally integrated tax system. The main contribution of this paper is the extension and generalization of the company valuation and cost of an equity formulas to a tax system different to the one used in the USA, but prevailing in many other countries in the world. Adapted from the source document.