[01] P. N. Brusov, 1Financial University under the Government of Russian Federation, Moscow, Russia. [02] T. V. Filatova, 1Financial University under the Government of Russian Federation, Moscow, Russia. [03] N. P. Orekhova, Research Consortium of Universities of the South of Russia, Rostov-on-Don, Russia; South Federal University, Rostov-on-Don, Russia. [04] I. K. Shevchenko, South Federal University, Rostov-on-Don, Russia. [05] A. Y. Arkhipov, South Federal University, Rostov-on-Don, Russia. [06] V. L. Kulik, 1Financial University under the Government of Russian Federation, Moscow, Russia.

In this paper, we describe new investment models with uniform debt repayment during the life of the project, quite adequately describing real investment projects. Within these models it is possible, in particular, to analyze the dependence of effectiveness of investment projects on debt financing and taxation. We will work within developed by Brusov-Filatova-Orekhova modern theory of capital cost and capital structure as well as within a perpetuity limit.

Debt Financing, Investment Projects with Uniform Debt Repayment, Effectiveness of Investment Project, Brusov-Filatova-Orekhova (BFO) Theory

[01] Brusov P, Filatova T, Orehova N, Eskindarov M (2015a), Modern corporate finance, investments and taxation, Springer International Publishing, Switzerland, 373 p. [02] Brusov, P. N., & Filatova, T. V. (2011). From Modigliani–Miller to general theory of capital cost and capital structure of the company. Finance and Credit, 435, 2–8. [03] Brusov, P., Filatova, T., Eskindarov, M., Orehova, N., Brusov, P., & Brusova, A. (2011). Influence of debt financing on the effectiveness of the finite duration investment project. Applied Financial Economics, 22, 1043–1052. [04] Brusov, P., Filatova, T., Orehova, N., & Brusova, N. (2011). Weighted average cost of capital in the theory of Modigliani–Miller, modified for a finite life-time company. Applied Financial Economics, 21, 815–824. http://dx.doi.org/10.1080/09603107.2010.537635. [05] Brusov, P., Filatova, T., Orehova, N., Brusov, P. P., & Brusova, N. (2011a). Influence of debt financing on the effectiveness of the investment project within Modigliani–Miller theory. Research Journal of Economics, Business and ICT, 2, 11–15. [06] Brusov, P., Filatova, T., Orehova, N., Brusov, P. P., & Brusova, N. (2011b). From Modigliani–Miller to general theory of capital cost and capital structure of the company. Research Journal of Economics, Business and ICT, 2, 16–21. [07] Brusov, P. N., Filatova, T. V., & Orekhova, N. P. (2013a). Absence of an optimal capital structure in the famous tradeoff theory! Journal of Reviews on Global Economics, 2, 94–116. [08] Brusov, P. N., Filatova, T. B., & Orekhova, N. P. (2013b). Modern corporate finance and investment (517 pp.). Moscow: Knorus. [09] Filatova, T. V., Orehova, N. P., & Brusova, A. P. (2008). Weighted average cost of capital in the theory of Modigliani–Miller, modified for a finite life-time company. Bulletin of the FU, 48, 68–77. [10] Modigliani, F., & Miller, M. (1958). The cost of capital, corporate finance and the theory of investment. American Economic Review, 48, 261–297. [11] Modigliani, F., & Miller, M. (1963). Corporate income taxes and the cost of capital: A correction. American Economic Review, 53, 147–175. [12] Modigliani, F., & Miller, M. (1966). Some estimates of the cost of capital to the electric utility industry 1954–1957. American Economic Review, 56, 333–391. [13] P.N. Brusov, T.V. Filatova and N.P. Orekhova (2014), Mechanism of formation of the company optimal capital structure, different from suggested by trade off theory// Cogent Economics & Finance, v.2, p. 1-13; http://dx.doi.org/10.1080/23322039.2014.946150.