Two Types of Payments of Tax on Profit: Advanced Payments and at the End of Periods: Consideration within BFO Theory with Variable Profit

Two modifications of a modern theory capital structure—the Brusov–Filatova–Orekhova (BFO) theory—with variable income are considered: (1) with the tax payments at end periods and (2) advance payments. BFO formulas for WACC, company capitalization, V, were derived these two cases. Using obtained formulas, dependence weighted average cost capital, WACC; discount rate; WACC–g (here, g, is growth rate); value, V; equity cost, ke, on leverage level, L, different values debt kd, age, n, studied. Comparing results cases shows that case always preferable both regulator. Recommendations have been developed parties to expand practice The managerial implications as follows. Companies may choose pay either in or reporting period accordance current laws. methodology makes it possible study companies growing profits falling profits, which very important practice. It also allows could rise fall periods.