Reference no: EM132927656

1. Assume I calculate g as ROE (1-p)/(1-ROE(1-p)) and the Ke from the CAPM. I replace both values in the formula PER =(ROE(1+g) -g)/ROE (Ke-g) but the PER I obtain is totally different from the one I get by dividing the quotation of the share to the earnings per share. Is it possible to interpret that difference as an overvaluation or undervaluation of that share on the market?

2. What repercussions do variations in the price of oil have on the value of a company?

3. How can auditor spot acts of creative accounting? I mean, for example the excess of provisions or the non-elimination of intra group transactions with value added.

4. I heard talk of the Earnings Yield Gap ratio, which is the difference between the inverse of the PER and the TIR on 10-year-bonds.It is said that if this ratio is positive then it is more advantageous to invest in equity. How much confidence can an investor have in such an affirmation?

5. I have a doubt regarding the Enron case. How could such a prestigious investments bank advice investing when the quotations of the shares were falling?

6. Is the following affirmation of an accountancy expert true? "The valuation criterion which reflects the value of the shares of a company in the most accurate manner is based on the amount of the shareholder's equity of its balance sheet. Stating that the value of a company's shares equals its book value is a valid argument."

7. Could we say that goodwill is equivalent to brand value?

8. Could we say that the value of shares is intangible?

9. When calculating the WACC ,is the weighing of the debt and the shares done with book values of debt and shareholder's equity or with market values?

10. The market risk premium is the difference between the historical return on the stock market and the risk-free rate , for every year. why is it negative for some years?