Analytical solution to the circularity problem in the discounted cash flow valuation framework
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 present a general formulation wit...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2011
- Institución:
- Universidad Tecnológica de Bolívar
- Repositorio:
- Repositorio Institucional UTB
- Idioma:
- eng
- OAI Identifier:
- oai:repositorio.utb.edu.co:20.500.12585/9107
- Acceso en línea:
- https://hdl.handle.net/20.500.12585/9107
- Palabra clave:
- Capital cash flow
Cash flows
Circularity
Cost of capital
Firm valuation
Free cash flow
WACC
- Rights
- restrictedAccess
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0/