Question
Hell tutors follow the link below to answer the questions that follow, make sure the answers are correct. Link: http://www.differencebetween.net/business/difference-between-economics-and-business/#:~:text%20economics%20go%20side,products%20in%20a%20particular%20economy. Is the net income of
Hell tutors follow the link below to answer the questions that follow, make sure the answers are correct.
Link: http://www.differencebetween.net/business/difference-between-economics-and-business/#:~:text%20economics%20go%20side,products%20in%20a%20particular%20economy.
Is the net income of a year the money the company made that particular year or is it a
number whose significance is quite doubtful?
2. Is depreciation the loss of value of fixed assets?
3. The so-called "cash flow" (net income plus depreciation) is a flow of cash, but is it a
flow to the shareholders or to the company?
4. The dividend is the part of the net income that the company distributes to
shareholders. As the dividend represents real money, the net income is also real
money. Is that true?
5. The part of the net income that is not distributed to shareholders goes to reserves
(shareholders' equity). As dividends represent real money, reserves are also real
money. Is that true?
6. Calculated betas provide different information if they are obtained by using daily,
weekly or monthly data. Which data is the most appropriate?
7. Does is make any sense to calculate betas against local indexes when a company has a
great part of its operations outside this local market? I have two examples: BBVA and
Santander.
8. Is it possible to make money in the stock market when the quotations are going
down? What is credit sale?
9. Which capital structure should we consider when calculating the WACC for a subsidiary
valuation: the one that is reasonable according to the risk of the subsidiary's business,
the average of the company or the one the subsidiary "tolerates/permits"?
10. Are there any ways to analyze and value seasonal businesses?
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