Reference no: EM132924712

1. Is it true that if a corporation does not pay dividends, the cost of its stock is zero?

2. What effect does the auto portfolio have on the stock price?

3. What is the purpose of a split?

4. The National Company in charge of the company where I work recently produced a document claiming that the field of energy transportation has a levered beta of 0.471870073. (yes, 9 decimals). They arrived at this figure by looking at the sector's betas, which range from -0.24 to 1.16. What good does it do to be so exact with betas? Is it reasonable to apply the same beta to all companies in a given sector?

5. What is the cash flow from capital? Is Free Cash Flow the same thing?

6. Is there any agreement among finance's leading authors on the market risk premium?

7. How can we measure a company's cost of capital in emerging markets, especially when there isn't a state bond to use as a benchmark?

8. How might an industrial business increase the worth of its inventory in order to lower its net income and taxes for the year?

9. The value of the company (Vl) is equal to the value of the unleveraged company (Vu) plus the value of tax shields, according to the tax shields valuation technique (VTS).

As a result, the greater the interest, the greater the VTS. So, if I phone my bank and tell them to charge me double the interest, will the company's worth increase?

10. I can't seem to get a valuation started. I need the WACC to calculate E + D = VA (FCF; WACC), and I also need D and E to calculate the WACC. What should I do first?

11. Is the debt's book value always the same as its market value?

Is the Free Cash Flow (FCF) equal to the total of the equity and loan cash flows?

13. What is the definition of NOPAT (Net Operating Profit After Tax)?

What does EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) stand for?

Working Capital Requirements are a term that I am unfamiliar with. Working Capital (Current Assets - Current Liabilities) comes to mind as a good analogy. Am I correct?

16. Instead of utilizing the CAPM, why can't we compute the needed return (Ke) using the Gordon-Shapiro model [P0 = Div0 (1+g) / (Ke - g)]? We can calculate the dividend growth rate using the formula g = ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - ROE (1-p)/(1 - RO