This paper contains the statistics of a survey about the Risk-Free Rate (RF) and of the Market Risk Premium (MRP) used in 2015 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 2015 was smaller...

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...

Spanish Abstract: Se presentan varios bonos interesantes. Algunos por su gran duración: bonos “la bella durmiente” (a 100 años, emitidos por Walt Disney Co. en 1993), bonos Matusalén (a 50 años), bonos perpetuos. Se analizan los bonos a 100 años y se comparan con un bono a 30 años y...

This paper has an English version and can be downloaded from: "http://ssrn.com/abstract=1799605" http://ssrn.com/abstract=1799605En este trabajo se muestra cómo encontrar la estructura óptima de capital y el valor con un endeudamiento constante y variable período a período, cuando la tasa de...

To value shares there are two usual methods that, if properly applied, provide the same value: 1/ Present value of expected free cash flows (FCF) discounted with the WACC rate and then, subtract the value of debt; and 2/ Present value of expected equity cash flows (ECF) discounted with the Ke...

This paper presents a real valuation performed by a well-known investment bank, with two common errors and with two very different values for the equity of a firm:a) €6,9 million calculating the Present Value of expected free cash flows (FCF) discounted with the WACC rate and then, subtracting...

This paper presents three different approaches for calculating the levered annual values for a finite cash flow profile. In the first approach, we use K_U, the return to unlevered equity to calculate the annual tax savings and use K_U to calculate the (present) value of the tax savings. In the...

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...

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...

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...