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Hello tutors be guided by the following link to answer the questions that follow: https://link.springer.com/pdf/1007/978-1-349-16426-4_1.pdf 1. Which of these two methods is better: discounting the

Hello tutors be guided by the following link to answer the questions that follow:

https://link.springer.com/pdf/1007/978-1-349-16426-4_1.pdf

1. 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

2. 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?

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

quotations fall. Is that true?

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

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

cases?6. Is it better to buy shares of a company 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 an optimal capital structure? What is it and how can it be calculated?

10. 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?

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