Assignment#!

1. Does financial leverage (debt) have any impact on the Free Cash Flow,

on the cash flow to shareholders, on the growth of the company and on the value of the shares?

2. Is it true that very few Spanish mutual funds outperform theirbenchmark?it strange?

3. Whatis the significance and the utility of the following formula: Ke=DIV (1+g) p+g?

4. What is the market risk premium in Spain at the present moment -the number which I have to use in the valuations?

5. Is the difference between the market value of the shares (capitalization) and their

book value a good measure for the value creation in a company since its foundation?

6. Is it better to buy shares of accompany or its assets?

7. Does the expected value of the sales and of the net income of Spanish companies have anything to do with sustainable growth?

8. Is PER a good guide to investments?

9. Is there and optional capital structure? What is it and how can it be calculated?

10. Is there any relationship between the net income and the flow to shareholders?