BFO Theory with Variable Profit in Case of Advance Payments of Tax on Profit

The Brusov–Filatova–Orekhova (BFO) theory is generalized for the simultaneous account of variable company profit and advance tax on income payments. BFO formula WACC, has been derived. dependence discount rate, WACC–g (here g growth rate), capitalization, V, equity cost, ke, leverage L at various values g, debt kd, age company, n, studied. It shown, that no longer a rate. This role passes to WACC–g, which decreases with while company's value increases g. tilt curve k(L) growths found rate < g* ke(L) negative. changes significantly dividend policy principles. WACC(L) as well decrease increase cost kd. V (L) all kd L, V(L) means shield advantages raising capital. Examining main financial parameters positive (g=0.2) negative (g=–0.2) rates, we huge difference in their behavior. allows you explore companies growing profits decreasing profits, investigate state whose rise fall different periods.