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Timanco S.A : Unpaid Taxes, Losses Carried Forward, Foreign Debt, Presumptive Income and Adjustment for Inflation: Matching DCF and EVA©

Velez-Pareja, Ignacio - 2010

There are methods to match value added approaches (Residual Income Method, RIM and Economic Value Added, EVA) with discounted cash flow methods, DCF. In this note we use a real life case from an emerging country to illustrate the matching, with complexities such as unpaid taxes, losses carried...

Persistent link: https://www.econbiz.de/10013140033

Risky Tax Shields and Risky Debt : A Monte Carlo Approach

Velez-Pareja, Ignacio - 2010

I identify three sources of risk for the tax shields: two of them associated to the risk of debt and one associated to the operating risk. I present a set of conditions for defining risky debt associated to cash flow and not to accounting earnings. I explain why realization of tax shields for...

Persistent link: https://www.econbiz.de/10013141867

Decision Intervention : The Effect of Assigned Social Status

Cardinaels, Eddy - 2012

We examine whether individuals can defy their decision power if it is beneficial for them to do so. In an experiment we let principals make a decision whether to make their own investment decision, or to let their agent make that decision. While the principal can work out that the agent benefits...

Persistent link: https://www.econbiz.de/10013114286

Analytical Solution to the Circularity Problem in the Discounted Cash Flow Valuation Framework

Mejia-Pelaez, Felipe - 2012

In this paper we propose an analytical solution to the circularity problem between value and cost of capital. Our solution is derived starting from a central principle of finance that relates value today to value, cash flow, and the discount rate for next period. We derive a general formulation...

Persistent link: https://www.econbiz.de/10013116165

A Simple Error-Proof Approach to Find Composite Discount Rates Such as CoLE, WACC and the Like

Cheremushkin, Sergei Vasilievich - 2011

in theory. In my papers “How to Avoid Mistakes in Valuation: guidelines for practitioners” and “Capital Structure …

Persistent link: https://www.econbiz.de/10013121860

Looking into the Black Box of Firm Valuation : A Monte-Carlo Simulation Model for Assessing the Riskiness of Debt and Tax Savings

Cheremushkin, Sergei Vasilievich - 2012

Persistent link: https://www.econbiz.de/10013099842

Assessment of Investment Projects on the Basis of Production Efficiency

Daskovskiy, Vadim - 2012

Methodologically, the recommended investment project (IP) selection system is distinguished from one in force by: new conception allowing for time factor; evaluating IP efficiency by eventual reproduction results, not by intermediate investment activity results (included is a generalized...

Persistent link: https://www.econbiz.de/10013101098

How to Ensure Consistency between Discount Rates and Cash Flows?

Cheremushkin, Sergei Vasilievich - 2012

valuation requires attention to plenty of details. The slightest negligence or insufficient knowledge of underlying theory can …

Persistent link: https://www.econbiz.de/10013102130

In Search of the 'Lost Capital' : A Theory for Valuation, Investment Decisions, Performance Measurement

Magni, Carlo Alberto - 2012

nonstandard theory of residual income. It is derived from the notion of “unrecovered” capital, which is here named “lost” capital … the simple average residual income play a major role in valuation; a dual relation between the standard theory and the … lost-capital theory is proved, clarifying the way periodic performance is computed in the two paradigms and the rationale …

Persistent link: https://www.econbiz.de/10013104372

How to Avoid Mistakes in Valuation - Comment to 'Consistency in Valuation : A Practical Guide' by Velez-Pareja and Burbano-Perez and Some Pedagogical Notes on Valuation and Costs of Capital

Cheremushkin, Sergei Vasilievich - 2010

The paper discusses common mistakes made by financial profession when valuating cash flows by applying inconsistent weighted average discount rates to cash flows to equity, to unlevered firm, to levered firm or other complex cash flows not regarding their type (constant or growing perpetuities,...

Persistent link: https://www.econbiz.de/10013149687