Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

978-0538473637

Students also viewed these Law questions