Question
Please refer on the link below to answer the questions that follows below. https://opentextbc.ca/businessopenstax/chapter/how-and-economics-work/ 1. A financial consultant obtains different valuations of my company when
Please refer on the link below to answer the questions that follows below.
https://opentextbc.ca/businessopenstax/chapter/how-and-economics-work/
1. 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?
2. Which parameter better measures value creation; the EVA (Economic Value Added),
the economic profit or the CVA (Cash Value Added)?
3. How could we project exchange rates in order to be able to forecast exchange
differences?
4. Is it possible to use a constant WACC in the valuation of a company with a changing
debt?
5. 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?
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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