"The Erlichs eventually had their home inspected by another general contractor and a structural engineer. In addition to confirming defects in the roof, exterior stucco, windows and waterproofing, the inspection revealed serious errors in the construction of the home's structural components. None of the 20 shear, or load-bearing walls specified in the plans were properly installed. The three turrets on the roof were inadequately connected to the roof beams and, as a result, had begun to collapse. Other connections in the roof framing were also improperly constructed. Three decks were in danger of `catastrophic collapse' because they had been finished with mortar and ceramic tile, rather than with the light-weight roofing material originally specified. Finally, the foundation of the main beam for the two-story living room was poured by digging a shallow hole, dumping in `two sacks of dry concrete mix, putting some water in the hole and mixing it up with a shovel.'" This foundation, required to carry a load of 12,000 pounds, could only support about 2,000. The beam is settling and the surrounding concrete is cracking.

1. Is there any relationship between the net income and the flow to shareholders?

2. Is it true that very few Spanish mutual funds outperform their benchmark? Isn't it

strange?

3. What is the significance and the utility of the following formula: Ke = DIV(1+g)/P + g?3140

4. What is the market risk premium in Spain at the present moment - the number which

I have to use in the valuations?

5. 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?

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?