In a recent paper, Pablo Fernandez (2002) makes the unusual and paradoxical sounding claim that for cash flows in perpetuity with a constant growth rate g, the value of the tax shields VTS is NOT equal to the present value of the tax shields. To be specific, Fernandez purportedly shows that the...

La versión española de este artículo se puede encontrar en: 'http://ssrn.com/abstract=2685207' http://ssrn.com/abstract=2685207.We discuss the relevance of personal taxes on Tax Shields. Interest and taxes are the basis for defining an optimal capital structure. When personal taxes are...

An English version of this paper has been posted at SSRN and can be downloaded from: "http://ssrn.com/abstract=2667127" http://ssrn.com/abstract=2667127.Spanish Abstract: En esta nota se analiza la importancia de los impuestos personales sobre los ahorros en impuestos o escudos fiscales, AI. El...

Muchos consultores, autores y profesores de Finanzas incluyen los cambios en losactivos liquidos (dividendos potenciales") en los flujos de caja. Esta practica escontraria a la teoria basica de las finanzas. Presentamos razones economicas, teoricas, yempiricas para apoyar la tesis. Por lo tanto,...

Practitioners and some academics use potential dividends rather than actual payments toshareholders for valuing a firm´s equity. We underline the differences between the two methods and present some arguments supporting the thesis that firm valuation with potential dividends overstate the...

Usualmente los textos de finanzas presentan por lo menos un capítulo sobre análisis financiero, entendido como análisis de razones financieras. Se enseñan muchos cursos en análisis financiero y se gasta una enorme cantidad de tiempo en cómo calcular las razones financieras basados en...

This is a teaching material for a module of Financial analysis at Universidad Tecnologica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times, but the basic content is...

En esta nota pedagógica presento algunas sugerencias e ideas que puede ser útil tener en cuenta cuando se trata de pronosticar estados financieros a partir de datos históricos. Las ideas que se presentan son el resultado de la experiencia de aconsejar a los estudiantes de licenciatura y de...

Practitioners and 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 arguments...

Although we know there exists a simple approach to solve the circularity between value and the discount rate, known as the Adjusted Present Value proposed by Myers, 1974, it seems that practitioners still rely on the traditional Weighted Average Cost of Capital, WACC approach of weighting the...