Abstract

http://ssrn.com/abstract=1826264
 
 

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Estructura Optima de Capital Para Flujos de Caja Finitos (Optimal Capital Structure for Finite Cash Flows)


Felipe Mejia-Pelaez


Internexa S.A. E.S.P.

Ignacio Velez-Pareja


Master Consultores

James W. Kolari


Texas A&M University - Department of Finance

October 21, 2011


Abstract:     
This paper has an English version and can be downloaded from: http://ssrn.com/abstract=1799605

En este trabajo se muestra cómo encontrar la estructura óptima de capital y el valor con un endeudamiento constante y variable período a período, cuando la tasa de descuento para el ahorro de impuestos es Ke, el costo de capital apalancado. Se presentan procedimientos numéricos y expresiones recursivas compactas no circulares para los casos de períodos finitos y perpetuidades, lo que facilita el cálculo y el análisis, incluyendo simulaciones de Monte Carlo. Asimismo, se ilustra el procedimiento en hoja de cálculo con Solver como una verificación.

Ver las diapositivas que acompañan y complementan este documento en: El Juego De La Gallina Ciega: Buscando La Estructura Óptima De Capital

This paper shows how to proceed to find the optimal capital structure and value with period-to-period constant and variable leverage, when the discount rate for Escudo fiscal is Ke, the cost of levered equity. Numerical procedures and recursive closed-form non-circular expressions for the finite-period and perpetuity cases are presented, which facilitate any kind of implementation including Monte Carlo simulations. In addition, we illustrate the optimizing procedure with Solver for checking purposes.

See the PowerPoint slides that accompany and complement this paper at: El Juego De La Gallina Ciega: Buscando La Estructura Óptima De Capital

Note: Downloadable document is in Spanish.

Number of Pages in PDF File: 39

Keywords: optimal capital structure, valuation, non-circularity, finite cash flows, perpetuities tax shield, cost of equity

JEL Classification: M21, M40, M46, M41, G12, G31, J33

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Date posted: May 2, 2011 ; Last revised: November 16, 2013

Suggested Citation

Mejia-Pelaez, Felipe and Velez-Pareja, Ignacio and Kolari, James W., Estructura Optima de Capital Para Flujos de Caja Finitos (Optimal Capital Structure for Finite Cash Flows) (October 21, 2011). Available at SSRN: http://ssrn.com/abstract=1826264 or http://dx.doi.org/10.2139/ssrn.1826264

Contact Information

Felipe Mejia-Pelaez
Internexa S.A. E.S.P. ( email )
Calle 12 sur N° 18
168, Bloque 5
Medellín
Colombia
Ignacio Velez-Pareja (Contact Author)
Master Consultores ( email )
Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+575 690 9972 (Phone)
HOME PAGE: http://cashflow88.com/decisiones/decisiones.html
James W. Kolari
Texas A&M University (TAMU) - Department of Finance ( email )
351R Wehner
Department of Finance
College Station, TX 77843-4218
United States
979-845-4803 (Phone)
979-845-3884 (Fax)

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