Which cost of debt should be used in forecasting cash flows?
Frequently, analysts and teachers use the capitalized rate of interest for the cost of debt when forecasting and discounting cash flows. Others estimate the interest payments when forecasting annual financial statements or cash flows based on the average of debt calculated with the beginning and end...
- Autores:
-
Vélez-Pareja, Ignacio
- Tipo de recurso:
- Fecha de publicación:
- 2009
- Institución:
- Universidad Tecnológica de Bolívar
- Repositorio:
- Repositorio Institucional UTB
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.utb.edu.co:20.500.12585/12100
- Acceso en línea:
- https://hdl.handle.net/20.500.12585/12100
- Palabra clave:
- Cost of debt
Forecasting financial statements
Seasonality
Costo de la deuda
Proyecciones de estados financieros
Estacionalidad
- Rights
- openAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/
| id |
UTB2_22cbe20ed8989e404870bed119b09c0e |
|---|---|
| oai_identifier_str |
oai:repositorio.utb.edu.co:20.500.12585/12100 |
| network_acronym_str |
UTB2 |
| network_name_str |
Repositorio Institucional UTB |
| repository_id_str |
|
| dc.title.spa.fl_str_mv |
Which cost of debt should be used in forecasting cash flows? |
| dc.title.alternative.spa.fl_str_mv |
Qué costo de deuda debe ser usado para pronosticar los flujos de caja? |
| title |
Which cost of debt should be used in forecasting cash flows? |
| spellingShingle |
Which cost of debt should be used in forecasting cash flows? Cost of debt Forecasting financial statements Seasonality Costo de la deuda Proyecciones de estados financieros Estacionalidad |
| title_short |
Which cost of debt should be used in forecasting cash flows? |
| title_full |
Which cost of debt should be used in forecasting cash flows? |
| title_fullStr |
Which cost of debt should be used in forecasting cash flows? |
| title_full_unstemmed |
Which cost of debt should be used in forecasting cash flows? |
| title_sort |
Which cost of debt should be used in forecasting cash flows? |
| dc.creator.fl_str_mv |
Vélez-Pareja, Ignacio |
| dc.contributor.author.none.fl_str_mv |
Vélez-Pareja, Ignacio |
| dc.subject.keywords.spa.fl_str_mv |
Cost of debt Forecasting financial statements Seasonality Costo de la deuda Proyecciones de estados financieros Estacionalidad |
| topic |
Cost of debt Forecasting financial statements Seasonality Costo de la deuda Proyecciones de estados financieros Estacionalidad |
| description |
Frequently, analysts and teachers use the capitalized rate of interest for the cost of debt when forecasting and discounting cash flows. Others estimate the interest payments when forecasting annual financial statements or cash flows based on the average of debt calculated with the beginning and ending balance. Others use the end of year convention that calculates the yearly interest multiplying the beginning balance times its contractual cost. The use of one or other methods is critical for the definition of the tax savings. These approaches are illustrated with examples and the differences in using them. A simple proposal to solve the problem is presented. |
| publishDate |
2009 |
| dc.date.issued.none.fl_str_mv |
2009-04-20 |
| dc.date.accessioned.none.fl_str_mv |
2023-07-14T13:49:57Z |
| dc.date.available.none.fl_str_mv |
2023-07-14T13:49:57Z |
| dc.date.submitted.none.fl_str_mv |
2023-07 |
| dc.type.coarversion.fl_str_mv |
http://purl.org/coar/version/c_b1a7d7d4d402bcce |
| dc.type.coar.fl_str_mv |
http://purl.org/coar/resource_type/c_2df8fbb1 |
| dc.type.driver.spa.fl_str_mv |
info:eu-repo/semantics/article |
| dc.type.hasversion.spa.fl_str_mv |
info:eu-repo/semantics/draft |
| dc.type.spa.spa.fl_str_mv |
http://purl.org/coar/resource_type/c_6501 |
| status_str |
draft |
| dc.identifier.citation.spa.fl_str_mv |
Vélez-Pareja, I. (2009). Which cost of debt should be used in forecasting cash flows? Estudios Gerenciales, 25(111). https://doi.org/10.1016/S0123-5923(09)70071-3 |
| dc.identifier.uri.none.fl_str_mv |
https://hdl.handle.net/20.500.12585/12100 |
| dc.identifier.instname.spa.fl_str_mv |
Universidad Tecnológica de Bolívar |
| dc.identifier.reponame.spa.fl_str_mv |
Repositorio Universidad Tecnológica de Bolívar |
| identifier_str_mv |
Vélez-Pareja, I. (2009). Which cost of debt should be used in forecasting cash flows? Estudios Gerenciales, 25(111). https://doi.org/10.1016/S0123-5923(09)70071-3 Universidad Tecnológica de Bolívar Repositorio Universidad Tecnológica de Bolívar |
| url |
https://hdl.handle.net/20.500.12585/12100 |
| dc.language.iso.spa.fl_str_mv |
eng |
| language |
eng |
| dc.rights.coar.fl_str_mv |
http://purl.org/coar/access_right/c_abf2 |
| dc.rights.uri.*.fl_str_mv |
http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| dc.rights.accessrights.spa.fl_str_mv |
info:eu-repo/semantics/openAccess |
| dc.rights.cc.*.fl_str_mv |
Attribution-NonCommercial-NoDerivatives 4.0 Internacional |
| rights_invalid_str_mv |
http://creativecommons.org/licenses/by-nc-nd/4.0/ Attribution-NonCommercial-NoDerivatives 4.0 Internacional http://purl.org/coar/access_right/c_abf2 |
| eu_rights_str_mv |
openAccess |
| dc.format.extent.none.fl_str_mv |
17 páginas |
| dc.format.medium.none.fl_str_mv |
Pdf |
| dc.format.mimetype.spa.fl_str_mv |
application/pdf |
| dc.publisher.place.spa.fl_str_mv |
Cartagena de Indias |
| dc.source.spa.fl_str_mv |
Estudios Gerenciales - Vol. 25, No. 111, (2009) |
| institution |
Universidad Tecnológica de Bolívar |
| bitstream.url.fl_str_mv |
https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/1/1-s2.0-S0123592309700713-main.pdf https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/2/license_rdf https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/3/license.txt https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/4/1-s2.0-S0123592309700713-main.pdf.txt https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/5/1-s2.0-S0123592309700713-main.pdf.jpg |
| bitstream.checksum.fl_str_mv |
42e6da14a6741737088a7740770cd125 4460e5956bc1d1639be9ae6146a50347 e20ad307a1c5f3f25af9304a7a7c86b6 74e1867de1c96957ce67e4768025df8d 379ff1692745a79849a47e1d63623fb1 |
| bitstream.checksumAlgorithm.fl_str_mv |
MD5 MD5 MD5 MD5 MD5 |
| repository.name.fl_str_mv |
Repositorio Institucional UTB |
| repository.mail.fl_str_mv |
repositorioutb@utb.edu.co |
| _version_ |
1814021652423376896 |
| spelling |
Vélez-Pareja, Ignacio7820b0cc-5263-4237-96bd-57076aa0af702023-07-14T13:49:57Z2023-07-14T13:49:57Z2009-04-202023-07Vélez-Pareja, I. (2009). Which cost of debt should be used in forecasting cash flows? Estudios Gerenciales, 25(111). https://doi.org/10.1016/S0123-5923(09)70071-3https://hdl.handle.net/20.500.12585/12100Universidad Tecnológica de BolívarRepositorio Universidad Tecnológica de BolívarFrequently, analysts and teachers use the capitalized rate of interest for the cost of debt when forecasting and discounting cash flows. Others estimate the interest payments when forecasting annual financial statements or cash flows based on the average of debt calculated with the beginning and ending balance. Others use the end of year convention that calculates the yearly interest multiplying the beginning balance times its contractual cost. The use of one or other methods is critical for the definition of the tax savings. These approaches are illustrated with examples and the differences in using them. A simple proposal to solve the problem is presented.¿Qué costo de deuda debe ser usado para pronosticar los flujos de caja? Con frecuencia analistas y profesores utilizan la tasa de interés efectiva para estimar el costo de la deuda para pronosticar y descontar los flujos de caja. Otros estiman los pagos de interés basados en el promedio de la deuda calculado con el saldo inicial y final. Otros más utilizan la convención de final de período y calculan el interés multiplicando el saldo inicial de la deuda por su costo contractual. El uso de uno u otro método es crítico para el cálculo de los ahorros en impuestos. Se ilustran estos enfoques con ejemplos y se muestran las diferencias al usarlos. Se presenta una propuesta simple para solucionar el problema17 páginasPdfapplication/pdfenghttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessAttribution-NonCommercial-NoDerivatives 4.0 Internacionalhttp://purl.org/coar/access_right/c_abf2Estudios Gerenciales - Vol. 25, No. 111, (2009)Which cost of debt should be used in forecasting cash flows?Qué costo de deuda debe ser usado para pronosticar los flujos de caja?info:eu-repo/semantics/articleinfo:eu-repo/semantics/drafthttp://purl.org/coar/resource_type/c_6501http://purl.org/coar/version/c_b1a7d7d4d402bccehttp://purl.org/coar/resource_type/c_2df8fbb1Cost of debtForecasting financial statementsSeasonalityCosto de la deudaProyecciones de estados financierosEstacionalidadCartagena de IndiasBenninga, S. (2006). Principles of Finance with Excel. London, UK: Oxford.Benninga, S., & Sarig, O. (1997). Corporate Finance. A Valuation Approach. New York, NY: McGraw-HillBerk, J., & DeMarzo, P. (2009). Corporate Finance: The Core. Boston, MA: Pearson Prentice-Hall.Brealey, R.A., & Myers, S.C. (2003). Principles of Corporate Finance (7th ed.). Boston, MA: McGraw-Hill/IrwinCopeland, T.E., & Weston, J.F. (1988). Financial Theory and Corporate Policy (3rd ed.). Reading, MA: Addison Wesley.Day, A. (2001). Mastering Financial Modelling. A Practitioner’s Guide to Applied Corporate Finance. London, UK: Prentice Hall.Grinblatt, M., & Titman, S. (2001). Financial Markets and Corporate Strategy (2nd ed.). Boston, MA: McGraw-Hill IrwinRoss, S.A., Westerfield, R.W., & Jaffe, J. (1999). Corporate Finance (5th ed.). New York, NY: IrwinMcGraw-Hill.Tham, J., & Vélez-Pareja, I. (2004). Principles of Cashflow Valuation. An Integrated Market Value Approach. Boston, MA: Academic PressTjia, J.S. (2004). Building Financial Models. A Guide to Creating and Interpreting Financial Statements. New York, NY: McGrawHill.Vélez-Pareja, I. (2006). Decisiones de Inversión. Para la valoración financiera de proyectos y empresas (5th ed.). Bogotá, Colombia: Universidad Javeriana.Vélez-Pareja, I., & Benavides, J. (2006). There Exists Circularity between WACC and Value? Another Solution. Estudios Gerenciales, 98, 13-23.Vélez-Pareja, I., Ibragimov, R., & Tham, J. (2008). Constant Leverage and Constant Cost of Capital: A Common Knowledge Half-Truth. Estudios Gerenciales, 24(107), 13- 34http://purl.org/coar/resource_type/c_2df8fbb1ORIGINAL1-s2.0-S0123592309700713-main.pdf1-s2.0-S0123592309700713-main.pdfapplication/pdf496118https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/1/1-s2.0-S0123592309700713-main.pdf42e6da14a6741737088a7740770cd125MD51CC-LICENSElicense_rdflicense_rdfapplication/rdf+xml; charset=utf-8805https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/2/license_rdf4460e5956bc1d1639be9ae6146a50347MD52LICENSElicense.txtlicense.txttext/plain; charset=utf-83182https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/3/license.txte20ad307a1c5f3f25af9304a7a7c86b6MD53TEXT1-s2.0-S0123592309700713-main.pdf.txt1-s2.0-S0123592309700713-main.pdf.txtExtracted texttext/plain26401https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/4/1-s2.0-S0123592309700713-main.pdf.txt74e1867de1c96957ce67e4768025df8dMD54THUMBNAIL1-s2.0-S0123592309700713-main.pdf.jpg1-s2.0-S0123592309700713-main.pdf.jpgGenerated Thumbnailimage/jpeg5426https://repositorio.utb.edu.co/bitstream/20.500.12585/12100/5/1-s2.0-S0123592309700713-main.pdf.jpg379ff1692745a79849a47e1d63623fb1MD5520.500.12585/12100oai:repositorio.utb.edu.co:20.500.12585/121002023-07-15 00:17:27.228Repositorio Institucional UTBrepositorioutb@utb.edu.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 |