Determinants Of Firm Terminal Value: The Perspective Of North American And European Financial Analysts

Company valuation models attempt to estimate the value of a company in two stages: (1) comprising of a period of explicit analysis and (2) based on unlimited production period of cash flows obtained through a mathematical approach of perpetuity, which is the terminal value. In general, these models, whether they belong to the Dividend Discount Model (DDM), the Discount Cash Flow (DCF), or RIM (Residual Income Models) group, discount one attribute (dividends, free cash flow, or results) to a given discount rate. This discount rate, obtained in most cases by the CAPM (Capital asset pricing model) or APT (Arbitrage pricing theory) allows including in the analysis the cost of invested capital based on the risk taking of the attributes. However, one cannot ignore that the second stage of valuation that is usually 53-80% of the company value (Berkman et al., 1998) and is loaded with uncertainties. In this context, particular attention is needed to estimate the value of this portion of the company, under penalty of the assessment producing a high level of error. Mindful of this concern, this study sought to collect the perception of European and North American financial analysts on the key features of the company that they believe contribute most to its value. For this feat, we used a survey with closed answers. From the analysis of 123 valid responses using factor analysis, the authors conclude that there is great importance attached (1) to the life expectancy of the company, (2) to liquidity and operating performance, (3) to innovation and ability to allocate resources to R&D, and (4) to management capacity and capital structure, in determining the value of a company or business in long term. These results contribute to our belief that we can formulate a model for valuating companies and businesses where the results to be obtained in the evaluations are as close as possible to those found in the stock market

Perpetual debt valuation: the net present value myopia

Would you prefer to receive a fixed rent for a period of 50 years, 75 years or perpetually? Well, if you have chosen the perpetual option, you are absolutely right. However, when considering a mathematical and financial approach, they may all end up roughly the same whenever the Net Present Value (NPV) is approximately identical. It makes common sense to choose the perpetual option even if the NPV exhibits myopia when computing the discount value of a fixed yearly rent. After a certain period, the discount value becomes approximately the same even when adding more yearly fixed rents. Corporations and governments issue perpetual bonds while recognizing these may not represent a very good financing strategy and thus implying that most of these issues are either callable or convertible on the issuer’s request. In approaching the existing perpetual debt related NPV myopia, this paper holds two main goals: firstly, we intend to study the behaviours of perpetual debt yields against other perpetual instruments and, secondly, we consider the financial methods for assessing the value of money before proposing a formula adjustment that might serve to overcome default NPV when evaluating fixed rents in perpetuity.

Evaluación de costo efectividad de la profilaxis versus tratamiento a demanda en pacientes con Hemofilia A moderada y severa para prevenir sangrado articular de una aseguradora en Colombia

Introducción: En Colombia existe un protocolo de manejo para pacientes con hemofilia A severa sin inhibidores que recomienda el manejo de profilaxis primaria y secundaria con FVIII. Objetivos: Estimar la relación incremental de costo-efectividad (RICE) de la profilaxis con Factor VIII vs tratamiento a demanda para prevenir sangrados articulares en pacientes con hemofilia A moderada y severa de una aseguradora en Colombia. Materiales y Métodos: Se adaptó un modelo de Markov desde la perspectiva del tercer pagador. Las probabilidades de transición se ajustaron mediante un modelo de regresión logística multinomial explicadas por la edad y el peso. Las tasas de eventos son anuales. Las efectividades se extrajeron de la cohorte de la aseguradora y de la literatura. Los costos incluyeron el FVIII, medicamentos, hospitalización, procedimientos quirúrgicos, apoyo diagnóstico y consultas médicas. La tasa de descuento fue del 3%. Resultados: En pacientes con hemofilia A moderada y severa la profilaxis con FVIII evitará en promedio 7 sangrados articulares, el RICE para el sangrado articular es de $303.457. Conclusiones: La profilaxis con Factor VIII es una estrategia costo-efectiva en el manejo de pacientes con hemofilia A moderada y severa para la aseguradora, disminuyendo el número de sangrados articulares al año.

LA RECOLECCIÓN Y MANEJO DE DESECHOS: SITUACIÓN DE LA REGIÓN BRUNCA, COSTA RICA

Con el fin de identificar la situación actual acerca del manejo y tratamien­to de los desechos en los municipios de la Región Brunca de Costa Rica y debido a la importancia que este problema tiene a escala nacional, producto de la inexperiencia y la poca educación existente acerca de los mecanismos para enfrentarlo, se realizó la presente investigación, que contempló una etapa de campo en la cual se visitaron los seis cantones de la Región, para obtener información administrativa y visitar los lugares donde actualmente se deposita la basura. Esto permitió confirmar que todos los municipios regionales tienen serios problemas para enfrentar el compromiso de recolectar y manejar los desechos que se producen en su cantón. La falta de censos y tarifas actualizadas limitan la posibilidad de planificar estrategias y tomar decisiones al respecto, y su antiguo modelo de recolección ha colapsado, por lo que las municipalida­des requieren de capacitación y asesoría para enfrentar el problema. Capacitación, educación, financiamiento, separación y reciclaje, son algunas de las acciones requeridas para enfrentar la situación. ABSTRACT This study was carried out identify the current situation of garbage management and treatment in Costa Rica's southern Brunca Región, since this problem achieves national proportions resulting from lark of experience and education on the ways to face it. The study included field research in the six counties of the región to obtain information on the administration of the garbage and garbage disposal sites themselves. This enabled us to confirm that the region's municipalities (local governments) actually have serious problems in their commitment to pick up and manage garbage. The shortage of census and up-dated fares restrict their chances to plan strategies and make significant decisions. In addition, their obsolete garbage disposal systems have collapsed. Consequently, the municipalities require training and advising, together with funding, education, garbage sorting techniques and recycling methods for them to face the problem properly.

Evaluate Bussines Study of Dairy Cattle on Financial Aspect at Dairy Cattle Farmers Partnership Project In Banyumas Regency

This research aimed to (1) evaluate feasibility business study on financial aspect dairy cattle farmers partnership government project in Banyumas Regency, (2) to study and to analyze farm management dairy cattle (cost and revenue) at the fifth year on business study dairy cattle. The study applied survey methode. Sample was collected in two step. The first step, determining location of study using purposive sampling technique. Four subregencies that accepted cows from government in 1998 were chosin as the location. The Second step determining responders of study using purposive sampling technique by collecting all breeders on the locations that accepted the government support in the form of cows in 1998. Result of this research indicated on breeders that accepted the support in form of one cows and two cows was assumed feasible as reflected by Net Present Value (NPV) > 0 ; Net Benefit Cost Ratio (Net B/C ratio) > 1 ; Internal Rate of Return (IRR) > I  (Social discount rate). At the fifth year, revenue were in form of one cow Rp 6.456.000,00 and two cows Rp 10.545.000,00. Profit received as one cow Rp 2.997.160,00 and two cows Rp 5.418.700,00. (Animal Production 6(2): 76-85 (2004) Key Words: Feasibility study,  Farmer income, Farmer profitability