The equity premium (also called market risk premium, equity risk premium, market premium and risk premium), is one of the most important, discussed but elusive parameters in finance. The term equity premium is used to designate four different concepts (although many times they are mixed):...

En este documento se valoran varias emisiones de bonos bolsa (un tipo de bonos estructurados) emitidos en Espantilde;a. Estis instrumentos financieros son la combinacioacute;n de un bono y una o maacute;s opciones.I value several issues of 'bonos bolsa' issued in Spain. These instruments are the...

En este documento se muestra coacute;mo utilizar la simulacioacute;n para valorar opciones y otros instrumentos financieros. Tambieacute;n se muestra coacute;mo se ha de realizar la simulacioacute;n para, al valorar opciones, obtener el mismo resultado que con la foacute;rmula de Black y Scholes.MBA...

This teaching note shows the relationship between levered and unlevered betas and the general formulation for the cost of equity. It also shows, step by step, the procedure to estimate betas from data found in the stock market.It shows well known procedures for estimating betas: correlation...

Este trabajo muestra la relación entre las betas apalancadas y sin deuda y la formulación general para el costo del capital. También muestra, paso a paso, el procedimiento para calcular las betas a partir de los datos que se encuentran en el mercado de valores. Se muestran procedimientos...

This article explores the behavior of the stock market in Colombia with the information given by the Bolsa de Bogotá Index (Indice de la Bolsa de Bogotá, IBB). The index is analyzed from January, 1930 to December, 1998. The inflation rate covers the same period; the inflation rate as measured...

We show that the three valuation methods (if used correctly) always yield the same result. The most striking result of this paper is that for a firm growing at a rate g, the Net Present Value of the tax shield due to interest payments (in the APV approach) must be calculated as follows: NPV OF...

Spanish convertible bonds are different from the American convertible bonds. First, the conversion price is not fixed in pesetas, but is defined as a percentage discount off the average share price over a number of days before conversion. Second, the conversion option can be exercised only at a...

This article explores the behavior of the stock market in Colombia with the information given by the Bolsa de Bogotaacute; Index (Indice de la Bolsa de Bogotaacute;, IBB). The index is analyzed from January, 1930 to December, 1998. The inflation rate covers the same period; the inflation rate as...

Spanish Abstract: Este documento contiene 210 errores cometidos en distintas valoraciones de empresas.La mayor parte de las valoraciones proceden de arbitrajes, procesos judiciales, compras y ventas de empresas a los que el autor ha tenido acceso. Casi todos los nombres de personas, empresas y...