question archive 1)   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

1)   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

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1)   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?

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)   Which method should we use to valuate young companies with high growth but uncertain futures? Two examples were Boston Chicken and Telepizza when they began.

Continuation

a)  Which of this method is better: discounting the Equity Cash Flow or discounting the Free Cash Flow?

b)  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?

c)  At times companies accuse investors of performing credit sales that they make their quotations fall. Is that true?

d)   What impact does high inflation have on the value of a business?

e)   Is it possible to use different WACCs in order to discount each year's flow? In which cases?

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