Capital Gains and the Capital Asset Pricing Model

Lally, Martin; van Zijl, Tony

dc.contributor.author	Lally, Martin
dc.contributor.author	van Zijl, Tony
dc.date.accessioned	2007-11-19T19:41:22Z
dc.date.accessioned	2022-07-05T01:18:28Z
dc.date.available	2007-11-19T19:41:22Z
dc.date.available	2022-07-05T01:18:28Z
dc.date.copyright	2001
dc.date.issued	2001
dc.identifier.uri	https://ir.wgtn.ac.nz/handle/123456789/18571
dc.description.abstract	This paper shows that, in the presence of differential taxation of ordinary income and capital gains, use of the Officer (1994) version of the Capital Asset Pricing Model can result in significant misestimation of the cost of equity capital. In particular, with a high dividend yield, the cost of equity may be underestimated by four percentage points. Underestimation is of particular significance in the context of setting output prices for regulated utility firms.	en_NZ
dc.format	pdf	en_NZ
dc.language.iso	en_NZ
dc.publisher	Te Herenga Waka—Victoria University of Wellington	en_NZ
dc.relation.ispartofseries	No. 1	en_NZ
dc.relation.ispartofseries	Working Paper	en_NZ
dc.subject	Income tax	en_NZ
dc.subject	Capital gains tax	en_NZ
dc.subject	Revenue generation	en_NZ
dc.subject	Estimation	en_NZ
dc.title	Capital Gains and the Capital Asset Pricing Model	en_NZ
dc.type	Text	en_NZ
vuwschema.contributor.unit	Centre for Accounting, Governance and Taxation Research	en_NZ
vuwschema.contributor.unit	School of Accounting and Commercial Law	en_NZ
vuwschema.subject.anzsrcfor	150199 Accounting, Auditing and Accountability not elsewhere classified	en_NZ
vuwschema.subject.marsden	340203 Finance Economics	en_NZ
vuwschema.type.vuw	Working or Occasional Paper	en_NZ
vuwschema.subject.anzsrcforV2	350199 Accounting, auditing and accountability not elsewhere classified	en_NZ