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...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidad Nacional de Colombia
2011-12-01
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| Series: | Innovar: Revista de Ciencias Administrativas y Sociales |
| Subjects: | |
| Online Access: | http://revistas.unal.edu.co/index.php/innovar/article/view/35412 |