Peter Brusov
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View article: Cost of Equity and Dividend Policy
Cost of Equity and Dividend Policy Open
The economically justified amount of dividends is equal to the equity cost, assuming that investors use a dividend discounting model. The evaluation of the latter is an extremely difficult task. It is possible to do this within modern capi…
View article: Qualitatively New Approach to Business Valuation and Company Value
Qualitatively New Approach to Business Valuation and Company Value Open
The objective of this work is to develop a qualitative new approach to assessing business and company value. For this purpose, two of the three income approach methods, CAPM and WACC, are modified. When modifying CAPM, a new model, CAPM 2.…
View article: Incorporating CAPM into Capital Structure Theories: Accounting for Business and Financial Risks
Incorporating CAPM into Capital Structure Theories: Accounting for Business and Financial Risks Open
In order to create a methodology for assessing the company’s main financial indicators, taking into account both business and financial risks, the CAPM and Fama-French models were included in the two main theories of capital structure - th…
View article: A new approach to assessing a company’s financial indicators: taking into account business and financial risks
A new approach to assessing a company’s financial indicators: taking into account business and financial risks Open
There are two main methods for estimating the value of assets. The first method is the well-known CAPM (Capital Asset Pricing Model), which uses the risk-free rate as the initial return and takes into account only the business risk associa…
View article: Application of the Company’s “Golden Age” Effect in the Economic Practice
Application of the Company’s “Golden Age” Effect in the Economic Practice Open
Taking into account the conditions of the real functioning of companies, one of the most striking effects in financial management is investigated: the “golden age” of the company (when the cost of capital raised is below the perpetuity lim…
View article: Capital Asset Pricing Model (CAPM) 2.0: Account of Business and Financial Risk
Capital Asset Pricing Model (CAPM) 2.0: Account of Business and Financial Risk Open
The famous Capital Asset Pricing Model (CAPM), widely used in practice, takes into account only the business risk associated with investments in a specific company [not the entire market (or industry)]. In practice, most listing companies …
View article: Capital Asset Pricing Model 2.0: Account of Business and Financial Risk
Capital Asset Pricing Model 2.0: Account of Business and Financial Risk Open
The famous Capital Asset Pricing Model (CAPM) takes into account only business risk. In practice, companies use debt financing and operate at non–zero levels of leverage. This means that it is necessary to take into account the financial r…
View article: An Assessment of the Financial Indicators of PJSC Gazprom
An Assessment of the Financial Indicators of PJSC Gazprom Open
This assessment of the financial performance of PJSC Gazprom was carried out within the framework of modern theories of the cost of capital and capital structure: the Brusov–Filatova–Orekhova (BFO) theory and the Modigliani–Miller (MM) the…
View article: Peculiar properties of the financial state of companies with falling income
Peculiar properties of the financial state of companies with falling income Open
The recent rise in inflation in Europe, caused by the pandemic, the increase in prices for energy resources and the violation of the logistics of energy supplies, has led to a decrease in company income. This makes it relevant to study the…
View article: The modern mathematical models in economics and finance
The modern mathematical models in economics and finance Open
With this article, we open a new section in this journal: the application of mathematical methods in economics and finance. A few topics we would like to discuss to get started are corporate finance, investments, business valuation, taxati…
View article: Two Types of Payments of Tax on Profit: Advanced Payments and at the End of Periods: Consideration within BFO Theory with Variable Profit
Two Types of Payments of Tax on Profit: Advanced Payments and at the End of Periods: Consideration within BFO Theory with Variable Profit Open
Two modifications of a modern theory of capital structure—the Brusov–Filatova–Orekhova (BFO) theory—with variable income are considered: (1) with the income tax payments at the end of periods and (2) with advance income tax payments. BFO f…
View article: BFO Theory with Variable Profit in Case of Advance Payments of Tax on Profit
BFO Theory with Variable Profit in Case of Advance Payments of Tax on Profit Open
The Brusov–Filatova–Orekhova (BFO) theory is generalized for the simultaneous account of variable company profit and advance tax on income payments. The generalized BFO formula for the WACC, has been derived. The dependence of WACC, discou…
View article: Capital Structure Theory: Past, Present, Future
Capital Structure Theory: Past, Present, Future Open
The purpose of this review is to analyze all existing theories of the capital structure (with their advantages and disadvantages) in order to understand all aspects of the problem and make correct management decisions in practice. The role…
View article: The Brusov–Filatova–Orekhova Theory of Capital Structure
The Brusov–Filatova–Orekhova Theory of Capital Structure Open
The book presents the Brusov–Filatova–Orekhova theory of capital structure and illustrates how to apply it in different areas of finance.
View article: Recent Development of Modigliani-Miller Theory
Recent Development of Modigliani-Miller Theory Open
Strategies in Accounting and Management Recent Development of Modigliani-Miller Theory Peter Brusov1* and Tatiana Filatova2 1Department of Mathematics, Financial University under the Government of Russian Federation, Moscow, Russia 2Depart…
View article: Generalization of the Brusov–Filatova–Orekhova Theory for the Case of Variable Income
Generalization of the Brusov–Filatova–Orekhova Theory for the Case of Variable Income Open
To expand the applicability in practice of the modern theory of cost and capital structure, the theory of Brusov–Filatova–Orekhova (BFO), which is valid for companies of arbitrary age, is generalized for the case of variable income. The ge…
View article: Influence of Method and Frequency of Profit Tax Payments on Company Financial Indicators
Influence of Method and Frequency of Profit Tax Payments on Company Financial Indicators Open
In practice, profit tax payments are (1) made more frequently than annually and (2) can be made in advance. To study the influence of these two factors on the financial indicators of a company, we generalized the Brusov–Filatova–Orekhova (…
View article: Benefits of Advance Payments of Tax on Profit: Consideration within the Brusov–Filatova–Orekhova (BFO) Theory
Benefits of Advance Payments of Tax on Profit: Consideration within the Brusov–Filatova–Orekhova (BFO) Theory Open
The modern capital cost and capital structure theory—the Brusov–Filatova–Orekhova (BFO) theory and its perpetuity limit, the Modigliani–Miller theory—describe the case of the payments of income tax at the end of the year. However, in pract…
View article: The Generalization of the Brusov–Filatova–Orekhova Theory for the Case of Payments of Tax on Profit with Arbitrary Frequency
The Generalization of the Brusov–Filatova–Orekhova Theory for the Case of Payments of Tax on Profit with Arbitrary Frequency Open
Both main theories of capital cost and capital structure—the Brusov–Filatova–Orekhova (BFO) theory and its perpetuity limit, the Modigliani–Miller theory—consider the payments of tax on profit once per year, while in real economy these pay…
View article: Impact of Advance Payments of Tax on Profit on Effectiveness of Investments
Impact of Advance Payments of Tax on Profit on Effectiveness of Investments Open
Recently Brusov et al. have developed innovative investment models that are very close to investment practice. Investment models with frequent payments of tax on profit and of interest on debt at the ends of periods have been considered. H…
View article: Innovative Investment Models with Frequent Payments of Tax on Income and of Interest on Debt
Innovative Investment Models with Frequent Payments of Tax on Income and of Interest on Debt Open
New modern investment models are created to be as close as possible to real investment conditions. We consider long-term as well as arbitrary duration models with payments of interest on debt and of tax on income a few times per year (semi…
View article: Generalization of the Modigliani–Miller Theory for the Case of Variable Profit
Generalization of the Modigliani–Miller Theory for the Case of Variable Profit Open
For the first time we have generalized the world-famous theory by Nobel Prize winners Modigliani and Miller for the case of variable profit, which significantly extends the application of the theory in practice, specifically in business va…
View article: The Modigliani–Miller Theory with Arbitrary Frequency of Payment of Tax on Profit
The Modigliani–Miller Theory with Arbitrary Frequency of Payment of Tax on Profit Open
The main purpose of the current study is the generalization and further development of the Modigliani–Miller theory taking into account one of the conditions of the real functioning of companies for the case of paying income tax with an ar…
View article: Path Integral Two Dimensional Models of P– and D–Wave Superconductors and Collective Modes
Path Integral Two Dimensional Models of P– and D–Wave Superconductors and Collective Modes Open
The main parameter, which describes superfluids and superconductors and all their main properties is the order parameter. After discovery the high temperature superconductors (HTSC) and heavy fermion superconductors (HFSC) the unconvention…
View article: Modification of the Modigliani–Miller Theory for the Case of Advance Payments of Tax on Profit
Modification of the Modigliani–Miller Theory for the Case of Advance Payments of Tax on Profit Open
The first serious study (and first quantitative study) of influence of capital structure of the company on its indicators of activities was the work by Nobel Prize Winners Modigliani and Miller.Their theory has a lot of limitations.One of …