Showing 1 - 10 of 27
We compute the shareholder value creation and the return of the companies in the IBEX 35 for the 19-year period 1991-201'3 The average return was 11%, but 2.9% was due to the decline in interest rates (from 13% to 5.5%). The shareholder value creation in the whole period was 23 billion euros,...
Persistent link: https://www.econbiz.de/10013131614
This paper contains the statistics of a survey about the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used in 2017 for 41 countries. We got answers for 68 countries, but we only report the results for 41 countries with more than 25 answers. The average (RF) used in 2017 was smaller than...
Persistent link: https://www.econbiz.de/10012958524
The Market Portfolio is not an efficient portfolio. There are many evidences that tell us that: the equal weighted indexes have beaten their market-value weighted indexes for many years, many easy-to-build portfolios (some “smart-beta”, “multifactors”) have beaten market-value weighted...
Persistent link: https://www.econbiz.de/10012903557
The value of tax shields (VTS) defines the increase in the company's value as a result of the tax saving obtained by the payment of interest. However, there is no consensus in the existing literature regarding the correct way to compute the VTS. Most authors think of calculating the VTS in terms...
Persistent link: https://www.econbiz.de/10012904517
We show, as simply as possible, the model's development, its implications and the assumptions on which it is based.The paper also contains 307 interesting comments and criticism from several professors, finance professionals and Ph.D. students about the CAPM: 234 basically agree in using the...
Persistent link: https://www.econbiz.de/10012904629
The CAPM is about expected return. If you find a formula for expected returns that works well in the real markets, would you publish it? Before or after becoming a billionaire?The CAPM is an absurd model because its assumptions and its predictions/conclusions have no basis in the real world. The...
Persistent link: https://www.econbiz.de/10012904691
The document starts with 100 questions that students, alumni and other persons (judges, arbitrageurs, clients…) have posed to me over the past years. They were recompiled so as to help the reader remember, clarify and, in some cases, discuss some useful concepts in finance. Most of the...
Persistent link: https://www.econbiz.de/10012905134
On April 16, 2012 the Argentine Federal Government decreed the intervention of YPF. Its share price declined 29% the day after. Two weeks later the Argentinean Parliament approved the expropriation of 51% of the YPF shares owned by Repsol. We prepared a month ago the case “Valuation of an...
Persistent link: https://www.econbiz.de/10012905398
The “VERAVAL Valuation” forecasts a great future for ElectraBul with solid customer, sales and FCF growth. Between 2010 and 2019 the customer base is expected to grow by 60%, sales in MWh by 72%, etc. However, the “VERAVAL Valuation” concludes that the value of ElectraBul shares in April...
Persistent link: https://www.econbiz.de/10012905411
Interest rates have a considerable bearing on share prices. Any investor's experience shows that, in general, when interest rates fall significantly, share prices rise, and vice-versa. We begin by observing the evolution of interest rates in the last 22 years in the United States. We also look...
Persistent link: https://www.econbiz.de/10012905414