economics 404 exp please.

47. How can we calculate a company's cost of capital in emerging nations, especially when there is no state bond which we could take as a reference? 48. How can an industrial company inflate the value of its inventory so as to reduce net income and the taxes is has to pay that year? 49. According to the valuation method based on tax shields, the value of the company (VI) is the value of the unleveraged company (Vu) plus the value of tax shields (VTS). Therefore, the higher the interest, the higher the VIS. So, does the value of the company increase if I call my bank and tell them to charge me double the interest? 50. I cannot seem to start a valuation. In order to calculate E + D - VA (FCF; WACC) I need the WACC and in order to calculate the WACC I need D and E. Where should I start? 51. Does the book value of the debt always coincide with its market value? 52. Is the Free Cash Flow (FCF) the sum of the equity cash flow and the debt cash flow? 53. What is NOPAT (Net Operating Profit After Tax)? 54. What is EBITDA (Earnings Before Interest. Taxes, Depreciation and Amortization)? 55. I do not understand the meaning of Working Capital Requirements. I think it should be similar to Working Capital (Current Assets - Current Liabilities). Am I right? 56. Why can we not calculate the required return (Ke) from the Gordon-Shapiro model Po - Divo (1+g) / (Ke - g)] instead of using the CAPM? As we know the current dividend (Div) and the current share price (Po), we can obtain the growth rate of the dividend from the formula g - ROE (1-p)/(1 - ROE (1-pll, p being the payout. 57. Assume I calculate g as ROE (1-p)/(1-ROE (1-p)) and the Ke from the CAPM. I replace both values in the formula PER - (ROE (1+g) - g)/ROE [Ke-g) but the PER 1 obtain is totally different from the one I get by dividing the quotation of the share to the earnings per share. Is it possible to interpret that difference as an overvaluation or undervaluation of that share on the market? 58. I was assigned a valuation of the shares of a pharmaceutical laboratory. Which valuation method is more convenient? 59. I need to know how to value a company well, but I cannot clearly see the valuation process of a company starting from its past income statements. What are the systematical steps I need to take? Firstly, I think I should elaborate the provisional statements for the following fiscal years and then calculate the cash flows, discount them at the present moment (with a discount factor), add the terminal value to it and the difference between the book net value and the market value of intangibles. I really need that these steps be methodical and easy to understand so I can use them as a guide when valuing a company. 60. What is a 3 x 1 Split? 61. A court assigned to me (as an economist and auditor] a valuation of a market butcher's. The butcher's did not provide any simple income statements or any valuable information which I could use in my valuation. It is a small business with just two employees, the owner and an apprentice. This type of tax system exempts them of21. 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? LUIS . ... 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? 31. Is there any relationship between the net income and the flow to shareholders? 32. Is it true that very few Spanish mutual funds outperform their benchmark? Isn't it strange? 33. What is the significance and the utility of the following formula: Ke - DIV(1+g)/P + g? 34. What is the market risk premium in Spain at the present moment - the number which I have to use in the valuations? 35. 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? 36. Is it better to buy shares of a company or its assets? 37. Does the expected value of the sales and of the net income of Spanish companies have anything to do with sustainable growth? 38. Is PER a good guide to investments? 39. Is there an optimal capital structure? What is it and how can it be calculated? 40. 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? 41. Is it true that if a company does not distribute dividends then the cost of its equity is zero? 42. What is the influence of auto portfolio in the quotation of the shares