Esta nota pedagógica ilustra el cálculo de la elasticidad precio-demanda y su aplicación en la proyección de estados financieros.

A corporate cash-holding strategy is a trade-off between the costs and benefits of holding cash. At the macrolevel, firms are inclined to adjust and optimize their cash-holding strategies in response to changes in purchasing power due to inflation. At the microlevel, the operating cycle, which...

When estimating future or pro forma financial statements and free cash flows we need to estimate future prices. In doing this we must estimate nominal increases in prices of many items, for instance selling prices, inputs prices (raw material, labor, overhead, etc.), cost of future debt, and...

La versión española de este artículo se puede encontrar en: "http://ssrn.com/abstract=1125625" http://ssrn.com/abstract=1125625.The return on investments depends on the effects of inflation. To analyze the effect of inflation, we shall use a case study of two companies engaging in the same...

As of 2022 economic policy focuses on consumer price inflation. However, little attention is given to asset price inflation, which caused more harm to the U.S. economy over the past 40 years than did consumer price inflation. For that matter, there is little public awareness of asset price...

There are methods to match value added approaches (Residual Income Method, RIM and Economic Value Added, EVA) with discounted cash flow methods, DCF. In this note we use a real life case from an emerging country to illustrate the matching, with complexities such as unpaid taxes, losses carried...

This paper establishes a degree of influence between an inflation rate and a risk-free investment rate on the precision of estimated value of an Asian real option. It has been shown with an example that in the event of advancing by the inflation rate beyond profitability of risk-free...

Our study examines the impact of the Inflation Reduction Act (IRA) on shareholder wealth and corporate agency costs. The IRA, signed into law on August 16, 2022, represents the first time in U.S. history that stock repurchases became subject to excise taxes. The stated goal of this new tax was...

Asset price inflation has been an underrated problem in the U.S. economy for as long as 40 years. An excess of lendable funds developed following 1980, leading to secularly falling interest rates. In result, financial values increased much more than the real economy and jobs. The outcome was a...

This study is undertaken to determine the relative impacts of the uncertainty of macroeconomic variables on investment and make policy recommendations that may help dampen their fluctuations. In the study, generalized autoregressive conditional heteroscedasticity (GARCH) model was applied in the...