A Simple Accounting-based Valuation Model for the Debt Tax Shield

This paper describes a simple way to integrate the debt tax shield into an accounting-based valuation model. The market value of equity is determined by forecasting residual operating income, which is calculated by charging operating income for the operating assets at a required return that accounts for the tax benefit that comes from borrowing to raise cash for the operations. The model assumes that the firm maintains a deterministic financial leverage ratio, which tends to converge quickly to typical steady-state levels over time. From a practical point of view, this characteristic is of particular help, because it allows a continuing value calculation at the end of a short forecast period.

Interactive Curriculum Based on Models of Mind & Brain

What does it mean for curriculum to be interactive? It encourages student engagement and active participation in both individual and group work. It offers teachers a coherent set of materials to choose from that can enhance their classes. It is the product of on-going development and continuous improvement based on research and feedback from the field. This paper will introduce work in progress from the Center for Excellence in Education, Science, and Technology (CELEST), an NSF Science of Learning Center. Among its many goals, CELEST is developing a unique educational curriculum, an interactive curriculum based upon models of mind and brain. Teachers, administrators, and governments are naturally concerned with how students learn. Students are greatly concerned about how minds work, including how to learn. CELEST aims to introduce curricula that not only meet current U.S. standards in mathematics, science, and psychology but also influence plans to improve those standards. Software and support materials are in development and available at http://cns.bu.edu/celest/private/. Interested parties are invited to contact the author for access.