The article discusses how adjusting the cost of debt with subsidies and taxes can affect the value of a company's cash flows. By considering lower loan rates and tax benefits, the study shows that debt financing can create value for a firm. The researchers demonstrate how to calculate these adjustments for both free cash flow and capital cash flow, using the Adjusted Present Value method. The findings reveal that the benefits of tax savings and subsidies need to be explicitly accounted for in determining the overall value of a company's cash flows.