Everybody uses tax shields when calculating the Weighted Average Cost of Capital (WACC). The textbook formula includes the tax shield with the (1-T) factor affecting the contribution of debt to the WACC. Tax shields are a strange mix of accounting and accrual related to WACC that relies on...

En esta nota se ofrece, un sencillo resumen de los principales meacute;todos de valoracioacute;n de intangibles. Incluye la presentacioacute;n de conceptos baacute;sicos de valor del dinero en el tiempo y de contabilidad. Asiacute; mismo, se incluye una breve aproximacioacute;n al enfoque de...

A nuestros estudiantes de Finanzas les ensentilde;an que lo maacute;s importante en esa aacute;rea es saber calcular y utilizar la tasa de intereacute;s efectiva o capitalizada. Para algunos de nuestros profesores, eso es todo; si un estudiante llega sin saber esa ficcioacute;n, no sabe...

In this teaching note I make a short review of the major statistics regarding the non traded firms in the U.S. and in Colombia as an example of an emerging market. I show some alternatives to estimate the cost of equity capital when there is not enough trading information. Some of them use the...

Many financial consultants, authors and teachers include changes in liquid assets (potential dividends) in the cash flows. This practice is against basic financial theory. We present economic, theoretical and empirical arguments to support the position to use only paid dividends in the cash...

In this teaching note I make a short review of the major statistics regarding the non traded firms in the U.S. and in Colombia as an example of an emerging market. I show some alternatives to estimate the cost of equity capital when there is not enough trading information. Some of them use the...

Everybody uses tax shields when calculating the Weighted Average Cost of Capital (WACC). The textbook formula includes the tax shield with the (1-T) factor affecting the contribution of debt to the WACC. Tax shields are a strange mix of accounting and accrual related to WACC that relies on...