Ross7e ch03

CHAPTER 3 Long-Term Financial Planning and Growth

Chapter Outline ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.1 What is Corporate Financial Planning? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.1 What is Corporate Financial Planning? ,[object Object],[object Object],[object Object],[object Object],[object Object]

What Will the Planning Process Accomplish? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.2 A Financial Planning Model: The Ingredients ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Sales Forecast ,[object Object],[object Object],[object Object]

Pro Forma Statements ,[object Object],[object Object]

Asset Requirements ,[object Object],[object Object]

Financial Requirements ,[object Object],[object Object],[object Object]

Plug ,[object Object],[object Object]

Economic Assumptions ,[object Object],[object Object]

The Steps in Estimation of Pro Forma Balance Sheet: ,[object Object],[object Object],[object Object]

The Steps in Estimation of Pro Forma Balance Sheet: (continued) ,[object Object],[object Object],[object Object],Present retained earnings + Projected net income – Cash dividends Projected retained earnings

A Brief Example ,[object Object],[object Object],[object Object]

A Brief Example Current Balance Sheet Pro forma Balance Sheet (millions) Explanation Current assets $6 $6.6 30% of sales Fixed assets $24 $26.4 120% of sales Total assets $30 $33 150% of sales Short-term debt $10 $11 50% of sales Long-term debt $6 $6.6 30% of sales Common stock $4 $4 Constant Retained Earnings $10 $11.1 Net Income Total financing $30 $32.7 $300,000 Funds needed (millions)

The Percentage Sales Method: EFN ,[object Object],p = Net profit margin = 0.10 d = Dividend payout ratio = 0.5  Sales = Projected change in sales = $2 million

The Percentage Sales Method: EFN ,[object Object]

3.4 What Determines Growth? ,[object Object],[object Object],[object Object],[object Object]

3.3 What Determines Growth? ,[object Object],[object Object]

The Sustainable Growth Rate in Sales ,[object Object],[object Object],[object Object],[object Object]

Uses of the Sustainable Growth Rate ,[object Object],[object Object]

Increasing the Sustainable Growth Rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

3.5 Some Caveats of Financial Planning Models ,[object Object],[object Object],[object Object]

Summary & Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Summary & Conclusions ,[object Object],[object Object]

Ross7e ch03

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (15)

Ähnlich wie Ross7e ch03

Ähnlich wie Ross7e ch03 (20)

Mehr von Alfredo Vasquez

Mehr von Alfredo Vasquez (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Ross7e ch03

Hinweis der Redaktion