Question
Any expert tutors around? i need urgent help on the following questions. I will only accept accurate answers 1. A financial consultant obtains different valuations
Any expert tutors around? i need urgent help on the following questions.
I will only accept accurate answers
1. A financial consultant obtains different valuations of my company when it discounts the
Free Cash Flow (FCF) as opposed to when it uses the Equity Cash Flow. Is this correct?
2. Which parameter better measures value creation; the EVA (Economic Value Added),
the economic profit or the CVA (Cash Value Added)?
3. How could we project exchange rates in order to be able to forecast exchange
differences?
4. Is it possible to use a constant WACC in the valuation of a company with a changing
debt?
5. Which method should we use to valuate young companies with high growth but
uncertain futures? Two examples were Boston Chicken and Telepizza when they began.
6. Which of these two methods is better: discounting the Equity Cash Flow or
discounting the Free Cash Flow?
IESE Business School-University of Navarra - 3
7. Is it possible to value companies by calculating the present value of the EVA
(Economic Value Added)? Which are the necessary hypotheses so that such valuations
provide similar results to discounting cash flows?
8. At times, companies accuse investors of performing credit sales that they make their
quotations fall. Is that true?
9. What impact does high inflation have on the value of a business?
10. Is it possible to use different WACCs in order to discount each year's flows? In which cases?
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