be fast please

Appellant attempts to question the wisdom of rejecting the application of Section 402A in situations such as here presented. He asserts that the above criteria have been met. We cannot agree. Section 402A which provides for a form of strict liability is, of course, not predicated upon

132

*132"fault" or "negligence." That which provides the basis for fastening liability upon suppliers of products is that the supplier or manufacturer is the one that has the control over the product and places it within the stream of commerce. The party merely financing the transaction has no control over its manufacture, is not involved in the selection of the product nor in any way makes a representation as to its quality or soundness. Between the financier and the ultimate purchaser, it is usually the latter who selects the goods, negotiates for its purchase and has control over its use

21. 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?

22. Which parameter better measures value creation; the EVA (Economic Value Added),

the economic profit or the CVA (Cash Value Added)?

23. How could we project exchange rates in order to be able to forecast exchange

differences?

24. Is it possible to use a constant WACC in the valuation of a company with a changing

debt?

25. 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.

26. 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

27. 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?

28. At times, companies accuse investors of performing credit sales that they make their

quotations fall. Is that true?

29. What impact does high inflation have on the value of a business?

30. Is it possible to use different WACCs in order to discount each year's flows? In which

cases