Reference no: EM132871973

Address all the questions.

1. Is the net income of year money the company made that particular year or is it a number whose significance is quite doubtful?

2. Is depreciation the value of fixed assets?

3. The so called "cash flow"(net income plus depreciation) is a flow of cash, but it a flow to the shareholders or accompany?

4. 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?

5. 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?

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

7. Is book value the best proxy to the value of the shares?

8. Is evaluation realized by a prestigious investment bank scientifically approved which any investor could use as reference?

9. Is it possible for accompanied with positive net income and which does not distribute dividends to find itself in suspension of payments?

10. 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?