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- 积分
- 1091
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- 710 点
- 资产
- 2299892 金币
- 注册时间
- 2006-3-26
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虽然知道离Busiess020 的最后考试还有一段时间。但是贴出来给大家先有个映像,别到考试的时候抱佛脚。我还会陆续贴出History028E的去年考试卷子。
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8 ^: N: q4 G! iGM Overview
8 X7 n8 l: t p& F: F. p+ l1 n3 U• Role, Timing, Issues/Decisions, C&Cs3 K% N: V. G# q
• Objectives" j4 K. G. G- _
– What do we “WANT” to do?. g, M/ g( T2 j2 ~
• External Analysis! u7 h' f* s+ a; I: n
– What do we “NEED” to do?
/ r4 m; r- o8 y$ `– PEST, Consumer, Competition, Trade( c8 _" ^# O$ z9 B, L; e3 A
• opportunities & threats! Y3 N ^, m& p; ]& N+ i
– IMPLICATIONS: KSFs& W1 M' H. B+ M$ g6 G
• Internal Analysis' p2 E/ S& m4 K* Y( h
– What “CAN” we do?# g, P. L6 ^2 A6 d+ U4 m
– Finance, Marketing, Ops, HR
" q" _" d; q- L# t• abilities, strengths & weaknesses, q/ [8 V% s$ \( @1 X* C
– IMPLICATIONS: KSFs, CORPORATE CAPABILITIES' t5 @; s6 I5 [; B+ G( x$ T
( s# i8 r3 g$ _4 }9 E• Alternative Evaluation
: l3 j. `9 O8 H7 D0 F: M! E– What are the options?
8 l- A5 Z1 A- Q– Evaluate the pros & cons of the options7 H8 e& m) O: T0 n; V D
– How does this option “FIT”?
/ Q0 f$ Z; l; I4 K– (you may be able to eliminate options based exclusively on the poor “FIT”qualitatively - if so, make sure you explain why this option was nixed)( k% ^7 E9 f/ E3 _, A% a
– Financial Feasibility (of AT LEAST 2-3 options that might “work”) * c- _8 e+ s2 C$ z$ l3 |+ w
$ v1 |; i2 B$ M: S• Decision, g0 j/ s. P" P' Z3 b, C
– Justify why you chose a particular option(s).# }7 A" s% H: t* j4 r' c7 j
– YOU SHOULD BE CONVINCING0 F* i @4 u3 V9 |1 d
• Which strategy best meets the firm’s objectives?
9 x- o# t. L" C3 c* y+ m4 j• Does it satisfy the personal objectives as well?
8 _+ |% l6 T6 a& c p* Q3 V. I* V• Have you addressed the cons of the chosen alternative?
: A; e0 R& P$ |8 \/ k• Is this decision consistent with the analysis you’ve done? EXPLAIN! (FITS) @0 p- F0 W# D
• Why NOT the other options?* o( n, D# N3 c9 J9 P
• How does this choice affect Finance, Marketing, Ops and HR? What changes
6 u* }! S9 i2 N' L9 U/ V* Wneed to be made?' C( v/ [6 ?( J! G; z3 \1 [) e
, o% Z( Z) b* W" e6 f! I" b
• Action Plan' Z# J1 D. ?0 R) x
• Map out a clear and precise implementation plan which includes;% ~: ?) y/ P, N, |0 O+ o/ M
– details which address what steps you have to take to implement your1 Z, j3 D, ^. N6 {9 S! {6 k
decision
. J' H m* {4 n& i: u% P: L8 Y– details about timing! z N9 L7 y" G1 j2 t
– details about WHO will be responsible for accomplishing the ‘task’
0 a' U, ^8 O/ l0 F– how will you follow-up your plan (measure success)
- f% o, R1 G7 |6 B# C– make sure to consider both the short term and long term
: w- K* d' V1 H* T, ^& m, J" Z% H; o; \
Firm Valuation
& g- ]- _! ]3 @8 R6 Y4 V& d" W• Used to help managers determine the “price” of a company.; x+ A. v2 u3 c( D
• 3 methods of valuing a firm;
8 W [$ h7 m1 @" S9 ?– Net Book Value
2 g+ c0 B( D; Z0 ~– Economic Appraisal. R8 s8 w J: T9 G! |
– Capitalization of Earnings
& D# S, e0 H; n4 `/ i. r$ x1 L• Using all 3 methods (if possible) helps us to determine a RANGE of what the V# v, q" u$ D% S8 A& A
company is worth., o/ t4 D7 Y0 a9 l) d7 X- {% J6 L
• THINK!!! What are you really selling? Will anyone pay for it? How much will they pay???
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Net Book Value (NBV)
' a* ]9 z: U5 w' k- s– Total Assets - Total Liabilities
! R# L9 }6 n$ @( ~0 ?( S& p• a.k.a.. the equity
+ P" x) f7 O2 }1 t5 C3 B) c% P– Does not account for the present market value of the assets/ Z5 m$ E; q' t9 o$ t
– Calculated using the most recent given balance sheet6 E1 l2 V: T5 P6 _. j3 v4 V3 E
– Preferred method for banks, creditors, and/or buyers who are interested in selling off the assets of the business& Q T8 [/ }7 M5 \& s
" R2 _! q9 @ d2 _3 v, G; q5 O Economic Appraisal (EA)
; H! z' Y1 o5 w& }$ x: R! }. J– Similar to NBV, but tries to reflect the current market value of the assets
6 |# y) ?+ O/ d, a2 q– Total Appraised Assets – Total Liabilities
& N1 x5 D' ~: J– Preferred by buyers who are interested in a company for its assets+ Z8 H* c* ~) e$ D
' B+ l+ {% l( r* ` ?
Capitalization of Earnings (CE)
; d9 B, ?: g5 W# H- i+ U– Focuses on the I/S instead of the B/S
& k1 d+ `! U# g• Attempt to value the company in terms of the future income it may provide.
8 Z7 o2 r' s3 g– NPAT * P/E ratio = value" @% E& g/ @/ [3 K( A" m
– Must evaluate two different earnings figures (to determine risk & range)
0 n; U2 q) I0 `• Assuming changes (projected statement)9 C0 P+ v V! Z& |0 b) G0 X; v, |
• Assuming no changes (current given I/S)3 Y# _0 n3 Z1 {: Y; g
– Select a reasonable P/E multiple
9 V" [. x2 u0 {" [4 k/ W( J# n– Preferred by buyers interested in the ongoing operation of the company (i.e.taking over as management)
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• P/E Multiple+ @6 R4 d; T& U f# u9 M, N
– Rules of thumb;
8 H' ` X9 v8 B/ D [( \" a• Mature industries with stable earnings tend to have multiples
( p3 }% v( @' P9 j7 u7 Ifrom 5 to 15./ P6 F) C7 e J+ B# F# o
• High growth industries tend to have multiples exceeding 20.
4 |! ? x, N0 j9 s• “Growth is good; risk is rotten!” C4 K5 g) K5 R
– growth increases a multiple
( O1 Z* ^% |% l' O6 B– risk decreases a multiple
% Z: q8 I1 ]+ b. z2 T( u8 {0 T! \) Q* ]) b# O
Their Associated Ratios% W5 g' R( f# W( p X# E4 ^
• Profitability;
$ E0 G1 [1 w7 c! C: |! P. @" Z7 K' @1 U– Business goal - to make $$! Q2 i3 _) z! X8 t S( |. d
– Ratios measures how much money we had to spend to make $X in sales) D! G3 R' b" J4 |3 G
• Stability;
! Z" d o$ `( N6 P x# R. ~+ f1 n– Business goal - to have a stable financial structure (balance its ownership of assets with debt and equity)& s$ q/ c1 Y( l' X* J% ^, t0 [
– Ratios measure the firm’s means of financing assets and ability to pay interest on debts
0 ]3 H2 {& H4 `7 @7 J$ R! t8 J* x% M7 y/ y7 y
5 Financial Goals &Their Associated Ratios1 ]: t) f& Y/ e# F& A2 V. R; G
• Liquidity;
! Z0 Q7 a# k2 z& B* q; c0 L8 W– Business goal - ability to meet s-t obligations
' i! }7 w" ?9 R. A1 w– Ratios measure how liquid the firm is (how able the firm is to pay its shortterm
. Y. Q# x6 K4 y+ C# z1 pobligations)
; z5 ~8 r$ ^9 d+ q) J• Efficiency;
3 Y& V K3 ~. H; w( x– Business goal - to efficiently use assets
, B9 A% H+ i9 d+ N+ o– Ratios tell us how efficiently we are using our investments4 x2 m3 ^; X1 P% }0 ?
8 z' F/ c8 Z0 e/ y. @• Growth;6 o4 z. a9 o% X8 e
– Business goal - to increase in size7 ]7 Y# A3 e$ z5 t# j; H+ Q+ b, T) s
– Ratios tell us whether the company is achieving any growth
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Interpreting the Ratios
4 J8 j3 G7 u- K- {4 N• Profitability;
: V" H3 O. f3 q. q– Vertical Analysis (of I/S)
- @+ [2 z: N. tI/S items * 100 = %
5 j% n; U2 v* m0 a( j Sales& E8 {1 m) i( Y
• Tells us it cost us X% of sales to make those sales
9 e% I9 p7 q/ }– Return on Investment/Equity
, N" }4 k8 d* E. v! PProfit ATB4D = %
. Q9 S8 ^- _9 H x( a9 g! g- ~/ V IAverage Equity
7 l4 N$ r0 ^$ B+ Z, O4 ~" Q[(Yr. 1 E + Yr. 2 E)/2]
f2 G4 w/ k0 D& J• Tells us how much profit we made relative to the investment made by the owners
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/ {& [2 D" P- N3 Q9 q! U• Stability;1 R- g/ I4 }$ \) A3 }4 n
– Net Worth: Total Assets9 {6 P) c- o; i6 c
Total Equity = %
9 u' `! u) G" j' s3 r- F, ?$ xTotal Assets
& w* `# {6 i4 v# A• tells us what % of assets were financed through owner’s money
. E+ y) K* _- H# |; F– Debt to Assets- ]& X2 g3 O1 `) i& l
Total Debt = % 5 o2 _- L5 ?& {7 _8 ^) X; ]
Total Assets
1 ~! f, G: r' Q& h5 A( \• Tells us what % of the assets were financed through debt
( }" w3 e; N; L$ U– Interest Coverage
3 M8 c8 p' G, Z* { EBIT = # times
0 u# m; P) l; l6 Z1 h5 @Interest Expense
7 `/ E2 A2 U- u6 \5 h0 p* x• tells us how many times we can pay interest
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" S4 t# q; g' Y! N/ P• Liquidity;
5 p) i; o8 F5 _7 \% Q$ p2 Y$ o2 \! d– Current Ratio
% G3 e5 g) t4 ^3 I1 v5 x dCurrent Assets = X:1
2 j8 t7 q5 L8 l. e$ ^* z B$ HCurrent Liabilities0 u! Q0 Z+ \5 S8 k
• Tells us, if we liquidated all our current assets, how many times we can pay our debts* V. c% J& B# J4 A' ]& H
RULE OF THUMB: 2:1
: d) Q. Z3 p7 Q. S– Acid Test
( n Y- X" u |8 |! oCash + M/S + A/R = X:1- K9 j; ~7 k0 m9 _
Current Liabilities
3 @% Z* ~. W1 e) @• Tells us how many times we can pay our debts with the money easily available to us
" m- {' {8 a* k7 h2 BRULE OF THUMB: 1:1
# s5 z5 h* i6 e
6 D) v; b o# K+ ?& d– Working Capital
1 s8 m' f/ O& `C.A - C.L = $X
+ e7 Y! J2 P, d• Tells us how much money we have to work with AFTER s-t debts are paid
& B) X/ `' p6 e. W3 Z8 h$ u- `' e% g6 f; h; g! h
Efficiency;
/ Z0 a: i% B0 R) q8 U, s/ m+ v– Age of Receivables3 D4 F* e- ~ J( f! g
Accounts Receivabl = # Days
5 O4 m; o7 G1 {! a8 G) o (Sales / 365). M. o. h4 a; ~
• Tells us how long it takes us to collect our $$
9 i% ^# Y: e1 N2 ~) a- c9 u6 s/ l# A
– Age Of Payables! l" D8 [: x# @, E/ N
Accounts Payable = # Days( P) h. u! x U5 q
(Purchases* / 365)
1 Q) Q! b l+ o! \3 _9 [) @• Tells us how long it takes us to pay our bills
9 G7 ]: }% S# N8 x3 c- {
& S1 n# \ t# K3 ]! c– Age of Inventory" t; {* O8 Y. w( n: O1 _3 q# A( i
Inventory = # Days) \2 g+ w/ O7 {. u8 u
(COGS / 365)
2 T4 C+ |, B# f• Tells us how long we are holding on to our inventory in the warehouse0 p7 m- g$ _# Q, m$ }$ _6 c
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• Growth;& a2 O) R4 X) c4 J6 ?
– Sales
. @6 X7 `' R$ L/ R0 u3 E– Net Income2 o1 _* p1 Q5 C: c
– Total Assets
) k/ O, ]+ h" E– Equity
) K* j% e y1 N/ r4 a3 w# TYr. 2 - Yr. 1 = %
) B8 V" I3 N4 j0 y1 ^ Yr. 1
: {8 E, ]2 o: d& u4 W3 e( Z• Tells us whether the accounts are growing (and hence the company)6 l. x! ^1 S% G% l) K2 G. a" J
$ k) W7 d- e- S7 r/ k2 c2 [
Understanding Ratios
( ~8 u- j4 w x5 t' ]( b9 z( m• DO NOT CONCLUDE THAT “THE RATIO IS GOOD/BAD”1 j7 l; p' P; M2 u# W
• Either the NUMERATOR or the DENOMINATOR affects the ratio6 P. r7 \! P1 ^1 O
• Ask yourself: “WHY HAS THE RATIO CHANGED & WHAT DOES THIS MEAN?”8 B2 i I" r. `- }
– Which number caused the change?
7 M" i. z* D; W; f. t– Look for increasing or decreasing trends over time.
5 y- N% M9 A* }6 P– Will these trends continue?
# m. E) F* |/ }3 O0 w– How does the company compare to the industry?
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1 k* q) I' R; L7 M2 b8 g4 g0 N; sClassifying Costs; N+ ?; x0 q9 f. d3 [$ c
• Variable Costs
) C$ F, K5 S. k1 J+ h– a cost incurred with every unit sold/produced (volume)
& D# p$ [( }% M2 Q% X/ o6 K1 b( \6 o• Fixed Costs2 g" d: h. H" n! ]4 {% ?
– cost that does not vary with volume |
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