1. Is it correct to use in the valuation of the shares of a company the "value of the real

net assets" which, according to the Institute of Accounting and Auditing (ICAC),

represents the "book value of shareholder's equity, corrected by increases or

decreasing in value which could be demonstrated, in the case of the goods, rights and

obligations of the company at the reference date?"

2. Is it correct to say that the value of the shares is the "value of the results'

capitalization" which, according to the Institute of Accounting and Auditing (ICAC)

represents "the sum of the expected future results of the company during a certain

period, discounted at the moment of the valuation?"

3. Is it true that a company creates value for its shareholders during a year if it

distributes dividends or if the quotation of the shares increases?

4. The ROE (Return on Equity) is the ratio between net income and Shareholders' equity.

The meaning of ROE is return to shareholders. Consequently, is ROE a correct

measurement of the return to shareholders?

5. Regarding the WACC that has to be applied to a project, should it be an expected

return, an opportunity cost or the average historical return on similar projects?

6. Could we assume that, as we cannot predict the future evolution of the value of shares,

a good approximation would be to consider it constant during the next five years?

7. The reasonable thing to do is to finance current assets (collections, inventories...) with

short-term debt, and fixed assets with long-term debt. Is this correct?

8. Is the market risk premium a parameter for the national economy or for the world

economy?

9. The market risk premium is the difference between the historical return on the stock

market and the return on bonds. But how many years does "historical" imply? Shall

we use the arithmetic mean or the geometric one?

10. We are valuing a company, a lot smaller than ours, in order to buy it. As that

company is a lot smaller than ours it will have no influence on the capital structure

and on the risk of the resulting company. This is the reason why I believe that the beta

and the capital structure which are relevant to the valuation of the company we are

analyzing are the ones of our company. Am I right?