This article explores the behavior of the stock market in Colombia with the information given by the Bolsa de Bogota Index (Indice de la Bolsa de Bogota, IBB). The index is analyzed from January, 1930 to December, 1998. The inflation rate covers the same period; the inflation rate as measured by...

En esta nota se hace un breve repaso de las principales estadísticas de las firmas no transadas en bolsa tanto en los Estados Unidos como en Colombia como un ejemplo de un Mercado emergente o en desarrollo. Se presentan algunas alternativas para calcular el costo del patrimonio o capital propio...

This article explores the behavior of the stock market in Colombia with the information given by the Bolsa de Bogotá Index (Indice de la Bolsa de Bogotá, IBB). The index is analyzed from January, 1930 to December, 1998. The inflation rate covers the same period; the inflation rate as measured...

The purpose of this work is double. On one side, we wish to examine if subsidizing the cost of debt has some influence on the firm value (debt plus equity) or if it is just a transfer from debt holders to shareholders. On the other hand, we wish to show that research in Finance, as in many...

This paper shows a formulation for the cost of equity and the WACC for growing perpetuities. Some authors have derived the general expressions for those formulas but not specifically for perpetuities with constant growth. The result obtained is that a previously general formulation for a finite...

This paper deals with with capital budgeting decisions under uncertainty. We present an Aggregate Return On Investment (AROI), obtained as the ratio of total (undiscounted) cash flow to total invested capital and show that it is a genuine rate of return which, compared with the risk-adjusted...

Los ahorros en impuestos por deuda son un tema de obligado interés dentro de la literatura financiera porque desafían el supuesto de que la deuda destruye valor, al demostrar que genera subsidios de impuestos que representan valor para las compañías. Pocos son los estudios empíricos que se...

En Vélez-Pareja y Tham (2001), presentamos diferentes maneras de valorar los flujos de caja. Primero se utilizó el costo promedio ponderado de capital (CPPC) (Weighted Average Cost of Capital, WACC) para descontar el flujo de caja libre (FCL). Segundo, se descontó el FCL con el WACC ajustado....

I present a set of conditions for defining risky debt associated to cash flow and not to accounting earnings. I explain why realization of tax shields for finite cash flows in any period of time t are correlated to Earnings before Interest and Taxes and are not correlated to interest expenses at...