4. Why can we not calculate the required return (Ke) from the Gordon-Shapiro model

[P0 = Div0 (1+g) / (Ke - g)] instead of using the CAPM? As we know the current

dividend (Div0) and the current share price (P0), we can obtain the growth rate of the

dividend from the formula g = ROE (1-p)/(1 - ROE (1-p)), p being the payout.

5. 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?

6. How can an 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.

7. 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?63

8. I have a doubt regarding the Enron case. How could such a prestigious investment

bank advise investing when the quotations of the shares were falling?

9. 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."

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