This paper analyzes the relationship between growth, poverty and income distribution using household data for Colombia for the years 1996 to 2004. We study the relationship between growth, inequality and poverty by following the Poverty Equivalent Growth Rate (PEGR) methodology developed by...

La evaluación de los proyectos de inversión pública en educación y salud es una tarea integral, desde la identificación hasta la evaluación de resultados, es tan importante la preinversión como la evaluación de los impactos. En el documento se plantean diferentes metodologías de...

Este trabajo presenta la evaluación financiera y económica del "Sistema Estratégico de Transporte Público de Pasajeros para la Ciudad de Pasto - SETP". Se desarrollo una metodología para la conceptualización y estimación de los beneficios y costos. Como resultado se destaca que el...

Resumen En la creación o la valoración de una empresa es muy importante contar con estados financieros proyectados confiables y consistentes para poder tomar las decisiones apropiadas para el inicio y seguimiento de la firma. En esta guía mostramos paso a paso y de una manera muy clara el...

When calculating Tax Savings, TS, we are confronted with a strange mix of accounting accrual and market value when involving TS in the calculation of the Weighted Average Cost of Capital, WACC, or the Cost of Equity, Ke. Firms earn the right to TS once they accrue the interest expense and they...

This chapter is devoted to the definition and calculation of cash flows, namely, cash flow to debt, (CFD), cash flow to equity, (CFE), Capital Cash Flow, (CCF), tax savings, (TS) and free cash flow, (FCF). The direct and indirect methods are used to derive the relevant cash flow profiles for the...

In a world with taxes, there is a small discrepancy between the deflated WACC WACCDef and the real wacc. This is due to the (1-T) term that is in the standard expression for the WACC applied to the Free Cash Flow (FCF). We compare different approaches for valuing nominal and real cash flows with...

Terminal value is critical for valuation purposes because very often it is a large part of what constitutes the value of a firm. In this short note I answer and clarify some typical questions and myths related to the calculation of terminal value. They are related to the use of non growing...

In this teaching note we show that using the findings of Tham and Velez-Pareja 2002, for finite cash flows, Ke and hence WACC depend on the discount rate that is used to value the tax shield, TS and as expected, Ke and WACC are not constant with Kd as the discount rate for the tax shield, even...

In the recent writings on valuation, there is no consensus about the correct formulas for calculating the relevant cost of capital in an M & M world. The proliferation of alpha number of methods and omega number of theories for the calculation of the cost of capital is puzzling because in the...