Cris de la Torre
Monfort College of Business
University of Northern Colorado
Campus Box 128
Greeley, CO 80639
- JD, University of Colorado-Boulder. Area of Study: Law
- PhD, University of Texas-Austin. Area of Study: Finance
- MBA, University of Texas-El Paso. Area of Study: Finance
- BS, University of Notre Dame. Area of Study: Civil Engineering
- Professor of Finance, University of Northern Colorado. (2011 - Present).
Licensures and Certifications
- Attorney at Law - State of Colorado. (1997 - Present).
Research/Areas of Interest
Research in Progress
"Mnemonics, M&M’s and Capital Structure: A Teaching Note" (On-Going).
A mnemonic is a tool to help remember facts or a large amount of information. It
can be a song, rhyme, acronym, image, or a phrase to help remember a list of facts
in a certain order. This short teaching note presents a classroom mnemonic that helps
students better understand the Modigliani and Miller 1958 capital structure irrelevancy
result. It also provides a fun time for the instructor as it allows a legitimate
reason to eat candy in the classroom
"Capital Budgeting and the Efficient Market Hypothesis: Why we are all dead in the
long run" (On-Going). The efficient market hypothesis (“EMH”) has long had an impact
on investment philosophy to the point that many believe that it only applies to stock
and other equity investments. This paper attempts to extend the EMH to the firm level
by examining the process of allocating resources known as capital budgeting. Too often
we neglect that the EMH should apply to the root cause of value, i.e. the acquisition
of assets, be it by project or merger. By adopting the EMH to capital budgeting, we
argue that firms, in the long run should not survive, as longterm survival is akin
to being able to consistently beating the market. Likewise, being able to consistently
pick merger targets that provide wealth is also a violation of the EHH. Our hope is
to bring a better understanding of the EMH by applying it to markets other than the
traditional stock market.
- "Disassembling the Replacement Analysis in Capital Budgeting: A Teaching Note" (On-Going).
When teaching capital budgeting, specifically the analysis with regard to replacement
projects, there comes a point when the instructor has to explain why the market value
of the old machine is recognized, as is the continued depreciation on the old machine.
Typically, the response is, “Well we want to capture the true effect of replacing
the old machine and its true impact.” This paper disassembles the analysis into the
sale of the old machine and the purchase of the new project separately to help clarify
the process to students.
- "HOA and Taxes Redux: An Update" (On-Going). In 2003 and 2004 the authors wrote two
papers dealing with tax issues and HOAs. Since that time there have been a number
of private letter rulings that have been issued by the Report Generated on October
3, 2016 Page 3 of 6 IRS. This paper will review several of these rulings and their
impact on HOAs.
- "Money and Concentration of Wealth: why it will only get worse" (On-Going). In the
recent past much has been said about the increasing concentration of wealth not only
in the U.S., but all across developed nations. Three-years ago there were demonstrations
in New York City and other places complaining about the “one-percenters.” The question
remains, what can be done to either slow down the phenomenon, or even reverse course.
This article will argue that historically and more importantly realistically, nothing
will reverse the trend. Taxes and other government actions will only slow down events.
Inevitably, money and improved technology provides the easy transfer and storage of
wealth resulting in accelerating concentration of wealth.
- "Tax Liens, Liquidity and the Secondary Market: How recent developments are making
tax liens more accessible." (On-Going). Similar to other markets, the tax liens market
has recently been aided by the creation of a secondary trading platform. Given the
historic illiquidity of tax liens, a well-functioning, liquid secondary market will
only serve to accelerate the growth of this investment segment. This paper briefly
reviews the essence of a tax lien, the environment of exchanging tax liens prior to
creation of the secondary market, and an overview of how the market works. In addition,
this article will discuss how the market reacted to recent extreme volatilities in
the stock market and the implications for the tax lien market as a potential safe
haven for investors.
- "The Developer’s Dilemma: How to Pay for Infrastructure" (On-Going). Historically
developers borrowed the necessary money to complete infrastructure improvements and
then priced the expenditures into the cost of the residential lot. This required the
developer to secure the funds from a bank or other lending institution with the expectation
that the loans would be paid as the lots were sold. More recently, developers have
used a bonding mechanism, sometimes in the form of Tax Increment Financing (TIF) whereby
the money is raised by a bond issue, backed by the development and paid by the annual
mill levy as part of the real estate taxes. This paper examines the evolution of how
developers raised the money for improvements, and critically looking at the reasons
for the shift.
- "Understanding The Discounted Payback technique: A teaching note" (On-Going). Too
often academic practitioners disparage capital budgeting techniques such as the discounted
payback (“DPB”) method as being too simplistic to help make capital allocation decisions.
This paper attempts to compare the DPB to the IRR, and the modified IRR so the reader
can be more acquainted with the full possibilities of better using the DPB as means
of ranking and selecting projects.
Juried Journal Article
- McClatchey, C., de la Torre, C. The intended and unintended effects of Dodd-Frank
on mortgage broker compensation. Journal of Real Estate Practice and Education, 16(2),
- de la Torre, C., Martinez, R. (2014). Too Big to Fail: Suggestions to limit the future
fallout. International Review of Accounting, Banking and Finance.
- Martinez, R., de la Torre, C. (2017). European Union-Latin American Trade: Current
Conditions and Perspectives. Journal of Business Diversity, 17(3).
Conference (Full Paper) Proceeding
- de la Torre, C., Martinez, R. (2018). Conference Proceeding: Disassembling the Replacement Analysis in Capital Budgeting:
A Teaching Note. Academy of Financial Services.
- de la Torre, C., Martinez, R., A. (2017). Understanding the Discounted Payback technique and its uses for Small Business.
Honors and Awards
MCB Finance Professor of the Year, MCB Student Council. (May 2018)
MCB Finance Professor of the Year, MCB Student Council. (2014)
MCB Finance Professor of the Year, MCB Student Council. (2013)
- MCB Finance Professor of the Year, MCB Student Council. (2012).