Servicios Personalizados
Revista
Articulo
Indicadores
Citado por SciELO
Accesos
Links relacionados
Similares en SciELO
Compartir
Contaduría y administración
versión impresa ISSN 0186-1042
Resumen
SCHAUTEN, Marc B.J.. Three discount methods for valuing projects and the required return on equity. Contad. Adm [online]. 2013, vol.58, n.1, pp.63-82. ISSN 0186-1042.
In this paper we discuss the required return on equity for a simple project with a finite life. To determine a project's cost of equity, it is quite common to use Modigliani and Miller's Proposition II (1963). However, if the assumptions of MM do not hold, Proposition II will lead to wrong required returns and project values. This paper gives an example of how the cost of equity should be determined in order to obtain correct valuations. The methods we apply are the Adjusted Present Value method, the Cash Flow to Equity method and the WACC method.
Palabras llave : Proposition II; net present value; APV; CFE; WACC.