#CorporateTaxReform Posts

The Toptal Finance Blog is a hub for in-depth studies and analysis on all facets of finance, ranging from innovative strategies on raising capital to detailed coverage of new finance trends and technologies.
Jacob Wright
Corporate Tax Reform and the Future of Valuation - Part II

In his first article on the effects of the new US corporate tax reform bill, Toptal Finance Expert Jacob Wright assessed one of the most important impacts of the reform: the changes to interest deductibility. In this follow-up article, he runs through some further thoughts related to the effects on capital expenditures, in addition to a more high-level assessment of what the optimal capital structure of the future will look like given these changes.

Continue reading →
Jacob Wright
Corporate Tax Reform and the Future of Valuation

In December 2017, Congress’ tax reform bill, amongst many sweeping changes, reduced the marginal tax rate to 21% from 35% for corporations, and limited their use of interest expense as a tax shield.

This article explores the implications of these changes for traditional methods of valuation, including the discounted cash flow (DCF) method and the EBITDA multiple method for the corporate manager and finance professional.

Continue reading →