2. Overview (Diujikan) Part 1: The Scope And Environment Of Financial Management Definition of financial management Understanding Financial Statements, Taxes, and Cash Flows Evaluating a Firm's Financial Performance Financial Forecasting, Planning, and Budgeting Part 2: Valuation Of Financial Assets The Value of Money Risk and Rates of Return Valuation and Characteristics of Bonds Stock Valuation Part 3: Investment In Long-term Assets Capital Budgeting Decision Criteria Cash Flows and Other Topics in Capital Budgeting Capital Budgeting and Risk Analysis Cost of Capital Managing for Shareholder Value
3. Overview (TidakDiujikan) Part 4: Capital Structure And Dividend Policy Raising Capital in the Financial Markets Analysis and Impact of Leverage Planning the Firm's Financing Mix Dividend Policy and Internal Financing Part 5: Working-capital Management And Special Topics In Finance Working-Capital Management and Short-Term Financing Cash and Marketable Securities Management Accounts Receivable and Inventory Management Part 6: Special Topics In Finance Risk Management International Business Finance Corporate Restructuring: Combinations and Divestitures Term Loans and Leases
32. Chapter 3 (cont’d) The DuPont Analysis: An Integrative Approach to Ratio Analysis “A breakdown of ROE and ROA into component ratios”
33. Chapter 4 Financial Forecasting Is used to estimate a firm’s future financial needs. Steps: Forecast the firm’s sales revenues & expenses over planning period Estimate the level of investment in current & fixed assets necessary to support the forecasted sales (using Percent of Sales Method) Determine the firm’s financing needs (Spontaneous and Discretionary Sources of Financing) The Discretionary Financing Needed (DFN) DFNt+1 = Projected ∆ in assets t+1 - Projected ∆ in liabilities t+1 - Projected ∆ in owners’ equity t+1 Projected ∆ in owners’ equity t+1 = [Net Profit Margin t+1 × sales t+1 ] × (1-b)
34. Chapter 4 (cont’d) Limitations of the Percent of Sales Forecast Method Pitfalls: only a rough approximation and is not very detailed Economies of scale lumpy assets The Sustainable Rate of Growth(the maximum growth rate of sales that the firm can sustain whle maintaining its present capital structure dan without having to sell new C/S) Financial Planning and Budgeting Budget functions: Amount and timing of the firm’s need for future financing Basis for corrective action Performance evaluation Cash budget: a detailed plan of future cash receipt and disbursements
