Pablo Fernández - Financial literature about discounted cash flow valuation
- 1. A brief review of the most significant papers
- 2. Main formulas in the most significant papers
- 2.1. Different expressions of the Value of the tax shield and of the required return to equity
- 2.2. Different expressions of WACC and WACCBT
- 2.3. Different expressions of the levered beta
- 3. The basic problem: the value of the tax shield due to the payment of interest (VTS)
- 4. Differences in the valuation according to the most significant papers
- 4.1. Growing perpetuity with a preset debt ratio of 30%.
- 4.2. Growing perpetuity with preset debt.
- APPENDIX 1