Hello tutors please help, provide detailed explanation.

Follow the following link: https://www.activeshub.org/topic/view/id/47/chapterId/522

1. Does the shareholders' equity represent the savings a company has accumulated

through the years?

2. Is book value the best proxy to the value of the shares?

3. Is a valuation realized by a prestigious investment bank a scientifically approved

result which any investor could use as a reference?

4. Is it possible for a company with a positive net income and which does not distribute

dividends to find itself in suspension of payments?

- IESE Business School-University of Navarra

5.There are four ways a company can use the money it generates: a) buying other

companies or assets; b) reducing its debt; c) distribute it to shareholders, and d)

increasing its cash holdings. What other reasonable things can it do?

6. As my company is not listed, the investment banks apply an illiquidity premium.

Actually, they say it is an illiquidity premium but then they call it a small cap premium.

One of the banks, apparently based on Titman y Martin (2007), added the following

small cap premiums: "0.91% if the capitalization is situated between $1,167 and $4,794

million; 1.70% if the capitalization is between $331 and $1,167 million; 4.01% if it is

lower than $331 million". Another bank adds 2% because historically the return of small

companies was smaller than that of big companies. Which one is more appropriate?

7.Which taxes do I have to use when calculating the Free Cash Flow (FCF) - is it the

marginal tax rate or the medium tax rate of the leveraged company?

8. According to what I read in a book, market efficiency hypothesis implies that the

expected average value of variations in the shares price is zero. Therefore, the best

estimate of the future price of a share is its price today, as it incorporates all the

available information. Is that right?

9. An investment bank calculated my WACC. The report says: "the definition of the

WACC is WACC = RF + u (RM - RF); RF being the risk-free rate, u the unleveraged

beta and RM the market risk rate." This is different from what we have seen in our

class. Are they right?

10. I read in a sentence passed by the Supreme Court that, in order to value companies,

economic doctrine relies on intermediary methods between the practical models and the

'Anglo-Saxon' theoretical models common in the United States and United Kingdom,

and the criteria set by the Administration is the result of a combination of bot