Harvard Corporate Governance

JULY 15, 2025

The One Big Beautiful Bill Act (the “OBBBA”) was signed into law on Friday, and, while not the paradigm shift of 2017’s Tax Cuts and Jobs Act (the “TCJA”), it introduces important changes affecting both domestic and cross-border transactions, many of which are effective for tax years beginning after December 31, 2025.

EBIT 113

EBIT EBITDA 113

Musings on Markets

FEBRUARY 23, 2025

An interesting question, largely unanswered or answered incompletely, is whether the US tax code change in 2017 changed how much US companies borrowed, since the lowering of tax rates should have lowered the tax benefits of borrowing.

Equity 77

Equity EBITDA Risk Premium Gross Debt 77

Andrew Stolz

NOVEMBER 28, 2021

It will be a challenge for the company to drive its EBIT margin to the industry average of 7-9%. CAPEX is likely to stay much lower than 2017 to 2019 level. Tata has been among the worst profitable car companies in the past years. The company has relatively high leverage. Free cash flow – Tata Motors. Value estimate – Tata Motors.

Dividends 52

Dividends EBIT Equity Business Valuation 52

Musings on Markets

OCTOBER 25, 2022

Thus, we start with operating income or earnings before interest and taxes (EBIT) replacing net income. (I In the Microsoft FCFF calculation, this would imply replacing the effective tax rate of 13.83% with an average effective tax rate of 22%, using the 2017-2021 time period, which would lower free cash flows to the firm.

Dividends 108

Dividends EBITDA Equity Start-ups 108