additional questions

The Federal Employees Health Benefits Act of 1959 (FEHBA), 5 U. S. C. 8901et seq.(2000 ed. and Supp. III), establishes a comprehensive program of health insurance for federal employees. The Act authorizes the Office of Personnel Management (OPM) to contract with private carriers to offer federal employees an array of health-care plans. See 8902(a) (2000 ed.). Largest of the plans for which OPM has contracted, annually since 1960, is the Blue Cross Blue Shield Service Benefit Plan (Plan), administered by local Blue Cross Blue Shield companies. This case concerns the proper forum for reimbursement claims when a Plan beneficiary, injured in an accident, whose medical bills have been paid by the Plan administrator, recovers damages (unaided by the carrier-administrator) in a state-court tort action against a third party alleged to have caused the accident.

41. Is it true that if a company does not distribute dividends then the cost of its equity is zero?

42. What is the influence of auto portfolio in the quotation of the shares?

43. Why do a Split?

44. The National Company responsible for the company where I work has recently

published a document stating that the levered beta of the sector of energy

transportation is 0.471870073 (yes, 9 decimals). They obtained this number by

considering the betas in the sector, ranging between -0.24 and 1.16. What is the point

of being so precise with the betas? Does it make any sense to apply the same beta to

all the companies in a sector?

45. What is the Capital Cash Flow? Is it the same with Free Cash Flow?

46. Is there any consensus between the main authors in finance regarding the market risk

premium?

4 - IESE Business School-University of Navarra

47. How can we calculate a company's cost of capital in emerging nations, especially

when there is no state bond which we could take as a reference?

48. How can an industrial company inflate the value of its inventory so as to reduce net

income and the taxes is has to pay that year?

49. According to the valuation method based on tax shields, the value of the company

(Vl) is the value of the unleveraged company (Vu) plus the value of tax shields (VTS).

Therefore, the higher the interest, the higher the VTS. So, does the value of the

company increase if I call my bank and tell them to charge me double the interest?

50. I cannot seem to start a valuation. In order to calculate E + D = VA (FCF; WACC) I need

the WACC and in order to calculate the WACC I need D and E. Where should I start?