Any expert tutors around? I would like professional answers on the following questions.

Case: Change in dollar value interestingly routes the flow of international goods and services. A fall

in the federal rate ups the demand as well as prices of US goods and services. This creates

increased demand for imported goods and services, as they are cheaper; in turn, creating a

wider US trade deficit. But, if the reduction in nominal rate also leads to a fall in the real

exchange value of the dollar, US goods and services will be cheaper than the foreign ones. This

rather boosts US exports. Usually, a fall in the dollar value has an initial stimulating effect on

foreign economies due to the growth in the US economy. However, in the long run, it is offset

by the increased demand for US exports. In order to maintain a status-quo on their economies,

sovereign governments can directly intervene into their economic systems through their

ministries or their central banks, based on whether they have pegged or floating rate currencies.

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. Our company (A) is going to buy another company (B). We want to value the shares of

B and, therefore, we will use three alternatives of the structure Debt/Shareholders'

Equity so as to obtain the WACC: 1) present structure of A; 2) present structure of B,

and 3) structure used by A to finance the acquisition of B's shares. We will value the

company B by applying these three alternatives and then take as a reference the

average of the results. Is this correct?

7. When valuing the shares of my company, I calculate the present value of the expected

cash flows to shareholders and I add to the result obtained cash holdings and liquid

investments. Is that correct?

8. I think the Free Cash Flow (FCF) can be obtained from the Equity Cash Flow (CFac) by

using the relation: FCF = CFac + Interests - D. Is this true?

9. Is the relation between capitalization and book value of shares a good guide to

investments?

10. Does it make any sense to form a portfolio comprised of companies with a higher

return per dividend?