RANGKUMAN INTRODUCTION FINANCIAL MANAGEMENT

Nama : Ricky Imanda Nim : 42E17022 Profit Total assets

ROE  margin  turnover 
Equity
multiplier

ROE  (NI/Sales)  (Sales/TA)  (TA/Equity )

 Depr. and   Capital Operating
 margin = EBIT/Sales (Current assets  Inventories )
FCF  EBIT(1  T)     NOWC Quick ratio 
AT operating income = EBIT(1 – Tax rate)  amortizati on  expenditur es EVA  = = $492.6/$7,036 = 7.0%
Current liabilities
Profit margin = Net income/Sales Operating margin = EBIT/Sales
Current  Current Notes  Inv. turnover = Sales/Inventories DSO= Receivables/Avg.
= $253.6/$7,036 =sales
3.6% per day = $492.6/$7,036 = 7.0%
NOWC      Current assets
assets  liabilitie s payable  Current ratio  Profit margin = Net income/Sales
Current liabilities Basic earning power = EBIT/Total assets
Operating margin= = EBIT/Sales= 14.1%
$492.6/$3,497 = $253.6/$7,036 = 3.6%
> FA turnover =debt/Total
= Sales/Net fixed assets > TA turnover= Sales/Total assets >Debt ratio= Total $492.6/$7,036 = 7.0% = EBIT/Interest charges
assets >TIE
Basic earning power = EBIT/Total assets
> ROA = Net income/Total assets > ROE= Net income/Total common equity >P/E = Price/Earnings per share > M/B = Market price/Book value per= share
= $492.6/$3,497 14.1%
Profit margin = Net income/Sales

Value =
FCF1

FCF2
 ... 
FCF r  r *=3.6%
= $253.6/$7,036 IP  DRP  LP  MRP
bill r RF  r *  IP
( 1  WACC ) ( 1  WACC )2
( 1  WACC )Basic earning power rTassets
= EBIT/Total
FVn  PV(1  i) n  PV(FVIFi,n ) = $492.6/$3,497 = 14.1%
I  I  ...  I n
IPn  1 2
1 n
PV0  FVn  FV(1  i) -n  FV(PVIFi,n )
(1  i) n  i 
m

EAR  1  nom   1
(1  i) n  1  m 
FVA n  PMT   PMT  (FVIFA i,n ) mn
i  i  PV 
PMT
FVn  PV1  nom 
FVAD n  FVA n  (1  i)  PMT  (FVIFA i,n )  (1  i)  m  i
1  (1  i) -n ROIC 
NOPAT
PVA 0  PMT   PMT  (PVIFA i,n )
i Operatingcapital
PVAD 0  PVA 0  PMT  (PVIFA i,n )  (1  i) n
r̂   Pi ri
n

i 1
 ( r  ˆr ) P
i 1
i
2
i
t
 1 
  CFt PVIFi ,t 
n n
PV   CFt  n

t 1  1  i  t 1 ( r t  r Avg )2 
 t 1 CV 
ˆr
FV   CFt 1  i   CFt FVIFi ,t 
n 1
n n
t
n
t 1 t 1
ˆrP   w iˆri = w AˆrA  ( 1  w A )ˆrB
NOWC = OCA – OCL NOWC = C + AR + IN – AP – ACRU i 1
n
NOPAT = EBIT (1-T)
Cov( AB )   ( rAi  ˆrA )( rBi  ˆrB )Pi
FCF = NOPAT + Depreciation – Gross investment in operating capital t 1
MVA = Market stock + market value of debt – total capita = S Price x S shares – Tot Capt Cov AB n

EVA = EBIT(1-T) – NOWC*WACC = (Operating capital)(ROIC – WACC)=  AB   P   w ii

AB i 1

 r  ˆrp  Pi = w   ( 1  w A )   2w A ( 1  w A ) AB A  B
n
2 2 2 2
p 
2
A A B Cov( ri , rM )  i 
  iM
pi
i1 bi 
N
INT M 1  ( 1  rd ) N M
2M  M 
VB     INT  
t 1 ( 1  r ) t
( 1  r ) N
r ( 1  rd )N  ˆr  r  D
d d d
ˆrp  rRF   M RF p rps  ps
 M 
2N
INT 2 M
VB  
N
 VB  
INT

Call price Vps
t 1 ( 1  rd 2 ) ( 1  rd 2 ) t 1 (1  rd ) (1  rd ) N
t 2N t
ri  rRF  (rM  rRF )i  rRF  RPM i
ˆ  D1  D 0 (1  g)

Dt
P̂0   P D
Vps  ps D
   rs  rRF  (RPM )Firm ˆrS  1  g
t 0
t 1 (1 rs ) rs g rs g rps
P0
D N1
ˆ D1
ˆ  D1 D2 DN r g re  g
P   ...   s N P0 (1  F )
0
1  rs  1  rs 
1 2
1  rs N 1  rs  WACC = wdrd(1-T) + wpsrps + wce*rs
n
CFt
Paybacks  Yearbeforefullrecov ery 
Unrecov ered costatstartofyear NPV    CF0
t 1 (1  r )t
Cashflowduringyear
EBIT NI
BEP  ROA 
TA TA