Search Results - subject:"Cash Flow to Equity"

Persistent link: https://www.econbiz.de/10010762916

Cost of Capital, Cost of Equity and Value Without Circularity for Constant Growth Perpetuities

Mejía, Felipe; Pareja, Ignacio Velez - MASTER CONSULTORES - 2010

This paper presents a formulation for the cost of equity, the WACC, and the value of equity and firm for growing perpetuities without circularity, using some previous results. We also derive a relationship between leverage, D%, and growth, given a value of debt at instant zero.

Persistent link: https://www.econbiz.de/10010762953

Estimating Cash Flows for Project Appraisal and Firm Valuation

Pareja, Ignacio Velez; Tham, Joseph - MASTER CONSULTORES - 2010

flow to equity, (CFE), capital cash flow, (CCF), tax savings, (TS) and free cash flow, (FCF). We use the direct and the …This teaching note is devoted to the definition and calculation of cash flows, namely, cash flow to debt, (CFD), cash …

Persistent link: https://www.econbiz.de/10010762975

Potential dividends versus actual cash flows in firm valuation

Magni, Carlo Alberto; Velez-Pareja, Ignacio - MASTER CONSULTORES - 2009

Practitioners and some academics use potential dividends rather than actual payments toshareholders for valuing a firm´s equity. We underline the differences between the two methods and present some arguments supporting the thesis that firm valuation with potential dividends overstate the...

Persistent link: https://www.econbiz.de/10010762934

Construccion de los flujos de caja

Velez-Pareja, Ignacio - MASTER CONSULTORES - 2009

Este es material de curso del libro Decisiones Empresariales bajo Riesgo e Incertidumbre. El nivel del libro es basico. Se usan muy pocas matematicas y puede ser usado por gerentes. En el capitulo siete se mencionan diferentes enfoques para la valoracion de las empresas. Se calculan los flujos...

Persistent link: https://www.econbiz.de/10010763055

Potential dividends versus actual cash flows in firm valuation

Magni, Carlo Alberto; Vélez-Pareja, Ignacio - Volkswirtschaftliche Fakultät, … - 2009

Practitioners and some academics use potential dividends rather than actual payments to shareholders for valuing a firm’s equity. We underline the differences between the two methods and present some arguments supporting the thesis that firm valuation with potential dividends overstate the...

Persistent link: https://www.econbiz.de/10005837338

POTENTIAL DIVIDENDS AND ACTUAL CASH FLOWS IN EQUITY VALUATION. A CRITICAL ANALYSIS

PAREJA, IGNACIO VÉLEZ -; MAGNI, CARLO ALBERTO - In: ESTUDIOS GERENCIALES (2009)

Practitioners and most academics in valuation include changes in liquid assets (potential dividends) in the cash flows. This widespread and wrong practice is inconsistent with basic finance theory. We present economic, theoretical, and empirical arguments to support the thesis. Economic...

Persistent link: https://www.econbiz.de/10008547472

POTENTIAL DIVIDENDS AND ACTUAL CASH FLOW. A REGIONAL LATIN AMERICAN ANALYSIS

PAREJA, IGNACIO VÉLEZ -; MERLO, MARIANO GERMÁN; … - In: ESTUDIOS GERENCIALES (2009)

We examine the value market assigns to components of the cash flow to equity including potential dividends. We study …

Persistent link: https://www.econbiz.de/10008547483

Potential Dividends and Actual Cash Flows. Theoretical and Empirical Reasons for Using 'Actual' and Dismissing 'Potential'. Or: How Not to Pull Pot...

Velez-Pareja, Ignacio; Magni, Carlo Alberto - MASTER CONSULTORES - 2008

Practitioners and academics in valuation include changes in liquid assets (potential dividends) in the cash flows. This widespread and wrong practice is inconsistent with basic finance theory. We present economic, theoretical, and empirical arguments to support the thesis. Economic arguments...

Persistent link: https://www.econbiz.de/10010763000

The mismatching of APV and the DCF in Brealey, Myers and Allen 8th edition of Principles of corporate finance, 2006

Velez-Pareja, Ignacio; Tham, Joseph - MASTER CONSULTORES - 2008

In the latest edition of Principles of Corporate Finance (Brealey, Myers and Allen, 2006) the authors use a finite cash flow example to illustrate the valuation procedure for using the Discounted Cash Flow (DCF) method with the free cash flow (FCF) and the Adjusted Present Value (APV). The two...

Persistent link: https://www.econbiz.de/10010763027