Cost of Capital, Cost of Equity and Value Without Circularity for Constant Growth Perpetuities

Felipe Mejía and Ignacio Velez Pareja
Authors registered in the RePEc Author Service: Ignacio Velez-Pareja ()

No 7314, Proyecciones Financieras y Valoración from Master Consultores

Abstract: This paper presents a formulation for the cost of equity, the WACC, and the value of equity and firm for growing perpetuities without circularity, using some previous results. We also derive a relationship between leverage, D%, and growth, given a value of debt at instant zero.

Keywords: Firm Valuation; Cost of Capital; Cost of Equity; Cash Flows; Free Cash Flow; Cash Flow to Equity; Ca (search for similar items in EconPapers)
JEL-codes: G12 G31 J33 M21 M40 M41 (search for similar items in EconPapers)
Pages: 13
Date: 2010-08-22
References: Add references at CitEc
Citations:

Downloads: (external link)
http://ssrn.com/abstract=1659446

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000463:007314

Access Statistics for this paper

More papers in Proyecciones Financieras y Valoración from Master Consultores
Bibliographic data for series maintained by Ignacio Velez ().