ABSTRACTFrequently, analysts and teachers use the capitalized rate of interest for the cost of debt when forecasting and discounting cash flows. Others estimate the interest payments when forecasting annual financial statements or cash flows based on the average of debt calculated with the...

El trabajo propone un modelo de valoración de opciones reales con base en el modelo binomial utilizando la transformación de Edgeworth (Rubinstein, 1998) para incorporar momentos estocásticos de orden superior, especialmente para ciertos tipos de organizaciones, como empresas de base...

A través de los años se han realizado numerosos estudios sobre las prácticas de presupuesto de capital en mercados desarrollados, pero la evidencia en mercados emergentes es escasa. En este trabajo se presenta la evidencia de las prácticas de presupuesto de capital de empresas grandes que...

A typical approach for valuing finite cash flows is to assume that leverage is constant (usually as target leverage) and the cost of equity, Ke and the Weighted Average Cost of Capital, WACC are also assumed to be constant. For cash flows in perpetuity, and with the cost of debt, Kd as the...

Although we know there exists a simpleapproach to solve the circularitybetween value and the discount rate,known as the Adjusted Present Valueproposed by Myers, 1974, it seemsthat practitioners still rely on thetraditional Weighted Average Cost ofCapital, WACC approach of weightingthe cost of...

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...

We examine the value market assigns to components of the cash flow to equity including potential dividends. We study non financial publicly traded firms from five Latin American countries. The model includes four variables: market value of equity, dividends paid, change in equity investment and...

The article’s objective is to analyze the development and evolution of the Mexican pension reform not only as such but also of two main bodies: on the one hand, the regulator (the National Saving for Retirement) and the other, from the pension fund manager designed as a public-private...

RESUMENEl caso presenta la vivencia, los análisis y las decisiones que se toman en una firma de inversiones financieras de renta fija, en el período de dos años, enfocando los diez últimos días y analizando en profundidad lo ocurrido en los últimos dos días de transacción. Además, un...

An analysis was made of then effect of the Tender Offer Law in Chile, and of the related situation of five countries with a more developed market than the Chilean one, reaching the conclusion that in order to successfully implement a Tender Offer Law it is necessary to bear in mind that the...