Short answer questions:

1. 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. Does the shareholders' equity represent the savings a company has accumulated through the years? 7. Is book value the best proxy to the value of the shares? 8. Is a valuation realized by a prestigious investment bank a scientifically approved result which any investor could use as a reference? 9. Is it possible for a company with a positive net income and which does not distribute dividends to find itself in suspension of payments?10. 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? 1 1. Assuming a company wishes to distribute money to its shareholders, is it better to distribute dividends or to repurchase shares? 12. Is the price of futures the best estimate of the 6/$ exchange rate? 13. How could we obtain an indisputable discount rate? How should we calculate the beta and the risk premium? 14. My company paid an extremely high price for the acquisition of another company; the price was recommended by the valuation of an investment bank. We now have financial problems. Is there any way to make that bank legally responsible for this situation? 15. Which currency has to be used in an international acquisition in order to calculate the flows? 16. Calculated betas provide different information if they are obtained by using daily, weekly or monthly data. Which data is the most appropriate? 17. 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. 18. Is it possible to make money in the stock market when the quotations are going down? What is credit sale? 19. 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"? 20. Are there any ways to analyze and value seasonal businesses? 21. 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.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? 43. Why do a Split? 44. The National Company responsible for the company where I work has recently published a document stating that the levered beta of the sector of energy transportation is 0.471870073 (yes, 9 decimals). They obtained this number by considering the betas in the sector, ranging between -0.24 and 1.16. What is the point of being so precise with the betas? Does it make any sense to apply the same beta to all the companies in a sector? 45. What is the Capital Cash Flow? Is it the same with Free Cash Flow? 46. Is there any consensus between the main authors in finance regarding the market risk premium