La versión española de este artículo se puede encontrar en: "http://ssrn.com/abstract=1125625" http://ssrn.com/abstract=1125625.The return on investments depends on the effects of inflation. To analyze the effect of inflation, we shall use a case study of two companies engaging in the same...

The share value is the present value of the expected equity cash flows, and the two main components of equity cash flows are dividends and share repurchases.We focus on the evolution of dividends and share repurchases on the U.S. stock market, although we also provide some data about other...

The PER is the most commonly used parameter in the stock market. The PER is the result of dividing the equity market value by the company's profit after tax.The PER depends on a number of factors, some of which are out of the company's control, such as variations in interest rates, and others...

Spanish Abstract: El libro (7ª edición) está compuesto por 16 capítulos. Cada uno de ellos puede descargarse gratuitamente en el link que aparece en el documento.El libro proporciona al lector a) los conocimientos necesarios para comprender y utilizar los distintos métodos de valoración;...

This case presents the valuation of the shares of an electric company in an emerging country. It permits the reader to identify errors and recalculate the valuation.ElectraBul was expropriated by the government in April 2010. The government said that ElectraBul shareholders should be paid a fair...

On April 16, 2012 the Argentine Federal Government decreed the intervention of YPF and expropriated of 51% of the YPF shares owned by Repsol. Repsol had a 57.4% stake. A tribunal will determine the compensation Repsol will receive for its YPF shares. You are required to help the tribunal. What...

Company valuation using discounted cash flows is based on the valuation of the Government bonds: it consists of applying the procedure used to value the Government bonds to the debt and shares of a company. This is easy to understand (sections 1, 2 and 3). But company valuation is complicated by...

Spanish Abstract: La valoración por descuento de flujos se basa en la valoración de los bonos del Estado: consiste en aplicar el procedimiento con el que se valoran los bonos del Estado a la deuda y las acciones de la empresa. Es una aplicación fácil de entender (apartados 1, 2 y 3). Pero se...

Spanish Astract: Conviene no perder de vista algo obvio: esta crisis, como todas, es el resultado de decisiones concretas tomadas por personas concretas. Verdad y responsabilidad son y serán, cada vez más, características competitivas de los países.Este artículo termina formulando la...

In the period 1991-2010, the S&P 500 destroyed value for the shareholders ($4.5 trillion). In 1991-1999 it created value ($5.1 trillion), but in 2000-2010 it destroyed $9.6 trillion. The market value of the S&P 500 was $2.8 trillion in 1991 and $11.4 trillion in 2010.We also calculate the...