We compute the Shareholder Value Creation of Banco Santander (SAN). The market cap of BS increased between December 1991 and December 2005 in 85.7 billion euros. The shareholder value creation during this period was 20.7 billion euros. The average shareholder return of BS in this 15-year period...

We compute the Shareholder Value Creation of Endesa. The market cap of Endesa increased between December 1991 and December 2006 in 33,403 million euros. The shareholder value creation during this period was 29,892 million euros. The average shareholder return of Endesa in this 15 years was...

This paper corrects some equations of Farber, Gillet and Szafarz (2006). The WACC is a discount rate widely used in corporate finance. However, the correct calculation of the WACC rests on a correct valuation of the tax shields. The value of tax shields depends on the debt policy of the company....

We compute the Shareholder Value Creation of Iberdrola. The market cap of Iberdrola increased between December 1991 and December 2005 in 17,279 million euros. The shareholder value creation during this period was 14,424 million euros. The average shareholder return of Iberdrola in this 14 years...

We compute the Shareholder Value Creation of Endesa. The market cap of Endesa increased between December 1991 and December 2005 in 18,994 million euros. The shareholder value creation during this period was 13,090 million euros. The average shareholder return of Endesa in this 14 years was...

We compute the Shareholder Value Creation of Banco Santander (BS). The market cap of BS increased between December 1991 and December 2005 in 67,070 million euros. The shareholder value creation during this period was 4,158 million euros. The average shareholder return of BS in this 14 years was...

The market cap of Telefonica increased between December 1991 and December 2005 in 55,695 million euros. The shareholder value creation during this period was 12.442 million euros. The average shareholder return of Telefonica in this 14 years was 16.8%, higher than that of the IBEX 35 (13.7%). We...

We develop valuation formulae for a company that maintains a fixed book-value leverage ratio and claim that it is more realistic than to assume, as Miles-Ezzell (1980), a fixed market-value leverage ratio. The value of tax shields depends only on the present value of the net increases of debt....

We compute the Shareholder Value Creation of Repsol. The market cap of Repsol increased between December 1991 and December 2005 in 25,611 million euros. The shareholder value creation during this period was 6,736 million euros. The average shareholder return of Repsol in this 14 years was 14.5%,...

We compute the Shareholder Value Creation of BBVA. The market cap of BBVA increased between December 1991 and December 2005 in 47,386 million euros. The shareholder value creation during this period was 15,617 million euros. The average shareholder return of BBVA in this 14 years was 19.8%,...