Stochastic Discounted Cash Flow

Lutz Kruschwitz is professor emeritus at the chair of banking and finance, the Free University of Berlin. He graduated in economics from this university. His research interests include investment and valuation theory. He is the author of several bestselling German finance textbooks. He received an honorary doctorate from the University of Tuebingen and is an honorary professor at the University of Vienna.Andreas Löffler studied Mathematics at the Leipzig University and the Academy of Science in Berlin. He obtained his Ph.D. in Mathematics in 1993 and a second Ph.D. in Economics in 1995 from the University of Leipzig . From 2000 he is a tenured professor at the chair of banking and finance at the University of Hannover. Since 2006 he is the chair of banking and finance at Friedrich Alexander University, Erlangen-Nuremberg. In 2008 he moved to Paderborn as a professor of finance and investment.  Since 2011 he holds the chair of finance at the Free University of Berlin.

• Introduction: A Stochastic Approach to Discounted Cash Flow.- Basic Elements: Cash Flow, Tax, Expectation, Cost of Capital, Value.- Corporate Income Tax: WACC, FTE, TCF, APV.- Personal Income Tax.- Corporate and Personal Income Tax.- Proofs.- Sketch of Solutions.