Reference no: EM132889085
Discussion Questions
1. Discuss which method should be use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began.
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 accompanied with a changing debt?
5. A financial consultant obtains different valuations of the company when it discounts the Free Cash Flow (FCF) as opposed to when it uses equity cash flow. Is it correct?
6. Which of this method is better: discounting the Equity Cash Flow or discounting the Free Cash Flow?
7. 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?
8. At times companies accuse investors of performing credit sales that they make their quotations fall. Is that true?
9. What is the market risk premium in Spain at the present moment -the number which I have to use in the valuations?
10. What impact does high inflation have on the value of a business?