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Myths and Realities of Governance and Corruption
Kaufmann, Daniel - 2006
A number of popular notions and outright myths on governance and corruption are addressed in this chapter. We … distinguish clearly between governance and anti-corruption, while probing the links between both notions. In so doing we challenge … underplaying the role of the private sector. We then challenge the notion that governance and corruption cannot be measured …
Persistent link: https://www.econbiz.de/10014061747
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Analytical Solution for Optimal Capital Structure in Perpetuities
Tham, Joseph - 2011
We derive and present the formula for optimal debt under the assumption that tax shields are discounted at the cost of levered equity, Ke and cash flows are on perpetuity. The formulation is consistent and is derived from basic financial principles. This formulation is valid for non-growing...
Persistent link: https://www.econbiz.de/10013132251
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Company Valuation in an Emerging Economy - Caldonia : A Case Study
Velez-Pareja, Ignacio - 2011
of equity. The relevance of this work relies on the use of general formulation different from the standard textbook …
Persistent link: https://www.econbiz.de/10013132604
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Cost of Capital and Value Without Circularity for Constant Growth Perpetuities
Mejia-Pelaez, Felipe - 2011
This paper presents the derivation of non-circular formulas for the calculation of the cost of equity, WACC, equity value (as a function either of initial debt or leverage), and levered firm value, using some previous results and showing their consistency with other well-known expressions....
Persistent link: https://www.econbiz.de/10013133106
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Cost of Capital with Levered Cost of Equity as the Risk of Tax Shields
Tham, Joseph - 2011
We present the derivation of cost of capital under the assumption of risky tax shields discounted with the cost of levered equity. We show that the formulation is consistent and is derived from basic financial principles. This formulation is valid for finite cash flows and non growing...
Persistent link: https://www.econbiz.de/10013133138
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Cost of Equity and WACC for Perpetuities with Constant Growth
Mejia-Pelaez, Felipe - 2011
This paper presents a formal derivation of general expressions for Ke and WACC in perpetuities with constant growth, which do not make any assumption on what the proper discount rate is to be applied to the firm's tax shield, and are complemented with numerical examples of its application....
Persistent link: https://www.econbiz.de/10013133176
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Analytical Solution to the Circularity Problem When Using Discounted Cash Flow Valuation (Solución Analítica al Problema de la Circularidad Usando Flujos de Caja Descontados) (Span...
Mejia-Pelaez, Felipe - 2011
In this paper we propose an analytical solution to the circularity problem between value and cost of capital. Our solution is derived starting from a central principle of finance that relates value today to value, cash flow, and the discount rate for next period. We derive a general formulation...
Persistent link: https://www.econbiz.de/10013133179
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Timanco S.A : Unpaid Taxes, Losses Carried Forward, Foreign Debt, Presumptive Income and Adjustment for Inflation: Matching DCF and EVA©
Velez-Pareja, Ignacio - 2010
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...
Persistent link: https://www.econbiz.de/10013140033
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Analytical Solution to the Circularity Problem in the Discounted Cash Flow Valuation Framework
Mejia-Pelaez, Felipe - 2012
In this paper we propose an analytical solution to the circularity problem between value and cost of capital. Our solution is derived starting from a central principle of finance that relates value today to value, cash flow, and the discount rate for next period. We derive a general formulation...
Persistent link: https://www.econbiz.de/10013116165
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Mejora de la Medición del Desempeño con el vea (EVA) Operativo Y Total (Sharpening Performance Measurement with the Operating and Total EVA)
Ibragimov, Rauf - 2013
Taking a slightly closer look at the EVA basics prompts that the metric by design is a synthetic mixture of returns from the operating and financing activities, and therefore, yields a biased assessment of both the operating and overall performance. Fundamentally, the scale of the measurement...
Persistent link: https://www.econbiz.de/10013084110