Reference no: EM132875207

Need help answering the questions below

1. The dividend is the part of income that that the company distributes to shareholders. ) As dividends represents real, the net income is also real money. Is that true?

2. The part of income that is not distributed to shareholders goes to reserves (shareholders equity) as dividends represents real money, reserves are also real money. Is that true?

3. Does the shareholders equity represents the savings accompany as accumulated through the years?

4. They are four ways accompany 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 thing can it do?

5. Assuming a company wishes to distribute its money to shareholders, is it better to distribute dividends or to repurchase shares?

6. How could we obtain indisputable discount rate? How could we calculate the beta and risk premium?

7. 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 the company legally responsible for this financial situation?

8. Which currency has been used in international acquisition in order to calculate the flows?

9. Calculated betas provide different information if they are obtained by using daily, weekly or monthly data. Which data is the most appropriate?

10. Does it make any sense to calculate betas against local indexes when accompany as a great part of its operations outside this local market? have two examples:BBVA and Santander