新手上路
版主
- 积分
- 10
- 获赠鲜花
- 2 朵
- 个人财富
- 100 金币
- 注册时间
- 2006-3-26
|
友情提示: 请千万不要登入陌生网站输入QQ号和密码,以防诈骗。
联系我时,请说明是从哪儿看到的,谢谢。
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。( x) B0 Q2 P/ |5 S( D N" {
7 ]) |1 D, y+ F
GM Overview
, c0 } x7 p d& L• Role, Timing, Issues/Decisions, C&Cs
( k/ \+ i5 @& A9 M0 }3 U• Objectives4 |) i8 w6 m p- I
– What do we “WANT” to do?# i7 V- X0 ~. G& {- I
• External Analysis
2 G, m0 ~# f6 q5 D. D7 f v* Y* f– What do we “NEED” to do?
9 w) g3 I" a( T- W– PEST, Consumer, Competition, Trade9 m. {, Q6 g% p0 ]
• opportunities & threats% A2 i9 N! g$ ?8 z; m
– IMPLICATIONS: KSFs
& `1 ?0 u8 V; ~# P3 l& J• Internal Analysis$ H% e- A: [4 R- F' Y$ t& V& F
– What “CAN” we do?
8 a) {0 O$ L9 M! `$ c& P4 P! U– Finance, Marketing, Ops, HR
' t5 H M& l+ t* }• abilities, strengths & weaknesses
! Q3 }! C5 b% p" r$ Z; W7 M' M– IMPLICATIONS: KSFs, CORPORATE CAPABILITIES
- m, ^$ L. F: `1 ]+ _: c
* \5 g( }, z/ c. \6 a3 J& p$ \• Alternative Evaluation
& @3 M/ @; C' U: d4 A9 Y0 ~' ]! O– What are the options?
N+ ~" t, c2 h7 x2 |– Evaluate the pros & cons of the options
4 S5 U$ {! o! _3 @) z* ^; ]! R– How does this option “FIT”?" ^3 z z5 N: S4 a
– (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)" X1 B' f! [/ O7 ^2 ]
– Financial Feasibility (of AT LEAST 2-3 options that might “work”) * J5 m: R9 M, a8 f: j7 W7 r
( l5 |1 d# E7 ^- a8 o+ g
• Decision9 f9 K, i2 ]7 ]/ t: \: b
– Justify why you chose a particular option(s).
, q# o" {: F& V8 b8 u– YOU SHOULD BE CONVINCING
8 p! W* ]% Q0 M/ T% L• Which strategy best meets the firm’s objectives?
' p5 l, U( p- D. I; ~/ R2 b• Does it satisfy the personal objectives as well?
, q$ L2 C& i& g5 b% R. o! j• Have you addressed the cons of the chosen alternative?
4 q9 Z# E# ?6 B& R( v3 f X* d• Is this decision consistent with the analysis you’ve done? EXPLAIN! (FITS)1 b" @& [0 ?: R* l( M" a3 x
• Why NOT the other options?
+ |& F6 R6 e5 s C5 K2 X! _• How does this choice affect Finance, Marketing, Ops and HR? What changes7 y; X2 I' I) r* P
need to be made?
5 ^, r N+ X6 X8 L# T. a% o8 y4 H7 k3 ^0 n3 `+ m
• Action Plan0 U3 Q( o( p" X0 L
• Map out a clear and precise implementation plan which includes;
( z, C3 m* L& y) g, B# E– details which address what steps you have to take to implement your. k. U) w4 `3 R; _. Z, S
decision3 M' s& X2 } o2 b
– details about timing
0 j, s; A1 r" @$ g/ ]8 a, S9 B– details about WHO will be responsible for accomplishing the ‘task’
) X9 H" e3 o% y. ^4 Y! u/ {6 ]– how will you follow-up your plan (measure success)
( l% U/ s3 G! ?* i. U. @– make sure to consider both the short term and long term
& I% t1 x; a; o" Q- Z l3 }$ V( x) K
Firm Valuation [& C. ^) q+ y* ~% x: }0 _
• Used to help managers determine the “price” of a company.4 v/ Z# r# W* }9 S: ]1 O' N
• 3 methods of valuing a firm;
2 P7 x* Z9 C+ k/ l– Net Book Value G& X( x9 L" ]: C. L: |: V7 y
– Economic Appraisal
" V+ F% e1 D6 }5 O, T& b) e! N* b– Capitalization of Earnings7 O; y8 p! \! V* o
• Using all 3 methods (if possible) helps us to determine a RANGE of what the: Z8 ^4 [% t2 J9 i! H. P& i7 R
company is worth.
6 k3 a8 ^! u" \ h• THINK!!! What are you really selling? Will anyone pay for it? How much will they pay???' _' v( N4 ]( E: i/ U( ^9 Q
6 b0 k4 l2 J/ e4 @0 w {) ~ O: a& t Net Book Value (NBV)6 H& h7 H+ S: e$ O3 N
– Total Assets - Total Liabilities! R% S4 k3 m# L7 C
• a.k.a.. the equity r+ u3 D+ u3 R
– Does not account for the present market value of the assets5 g6 w k) x- P6 z6 t
– Calculated using the most recent given balance sheet$ w- c* |4 q9 U% \+ M) H4 L
– Preferred method for banks, creditors, and/or buyers who are interested in selling off the assets of the business
. V7 ~8 r/ c- @
b& z9 n3 Z# i ~ Economic Appraisal (EA)/ Z* }( m. b3 N5 i( X' M {! @
– Similar to NBV, but tries to reflect the current market value of the assets9 {6 }+ U; i/ B" Q$ A3 R- f/ N+ `
– Total Appraised Assets – Total Liabilities) n6 t" u* n4 p( V6 X
– Preferred by buyers who are interested in a company for its assets
( ^0 ]0 u- Q8 ?2 w& }. T
' l0 h9 X# z9 h Capitalization of Earnings (CE)
6 q1 A( d$ G4 }: \– Focuses on the I/S instead of the B/S9 S Z! g9 ? o8 f+ s
• Attempt to value the company in terms of the future income it may provide.# u3 t6 V) P/ d
– NPAT * P/E ratio = value
& U. Q2 y& X; Q; f9 R– Must evaluate two different earnings figures (to determine risk & range)5 z# [6 a! U( H# M$ a/ J% M2 K$ A
• Assuming changes (projected statement)
7 z4 G. _4 E X9 t( I• Assuming no changes (current given I/S)- Z# X/ L; Z# ?& N5 e Z" {
– Select a reasonable P/E multiple
4 `% [' C" O# E) k: `– Preferred by buyers interested in the ongoing operation of the company (i.e.taking over as management) M; R; \7 ?% J! i$ z% t" i
' k Y! r- B" W
• P/E Multiple
+ a5 P. z6 \$ N* u" k– Rules of thumb;7 g5 |6 i5 C! c0 u Z) Q
• Mature industries with stable earnings tend to have multiples4 U: y) A9 t! I2 E% Q
from 5 to 15.4 F0 W: |# q0 h; F, f b
• High growth industries tend to have multiples exceeding 20.
4 O" j |" B7 i J6 U3 n• “Growth is good; risk is rotten!”; P9 [$ y0 ]: P- J: j U* f
– growth increases a multiple
' k* v( `! i @1 ?– risk decreases a multiple6 h. g+ p) Q$ m3 ~+ V
$ H: R4 a, D9 p5 ~+ v3 qTheir Associated Ratios7 c% l2 B. t: P* p) a& y$ ?! u
• Profitability;
" [! k" T0 x7 q' Q4 x' G- D– Business goal - to make $$* f+ S% b7 S# Q/ |1 G
– Ratios measures how much money we had to spend to make $X in sales) V: S6 z0 I6 a
• Stability;) C6 q$ f; T( e! ~& d! |) t: B: t
– Business goal - to have a stable financial structure (balance its ownership of assets with debt and equity)/ {' x4 y; M9 {- Y
– Ratios measure the firm’s means of financing assets and ability to pay interest on debts
+ s4 X" M0 t! \5 R
' L; y+ k+ _* {- Y- q) a1 E/ `5 Financial Goals &Their Associated Ratios
( g# q m: o/ v% ~. y) R$ U • Liquidity;+ M: ?$ R& _- u. Z) W* a N
– Business goal - ability to meet s-t obligations
. v( ~/ H- S$ o1 F5 @– Ratios measure how liquid the firm is (how able the firm is to pay its shortterm
: t+ W% A0 E% h+ t5 a2 oobligations), D$ G) Q" a& z1 l8 y; K9 v/ H0 c
• Efficiency;
5 h& v& \+ C# G7 d– Business goal - to efficiently use assets
2 {, e) D4 j8 |) h0 c9 G6 M- S– Ratios tell us how efficiently we are using our investments
1 Z9 k' k, t" ~% C$ K6 u8 E* |' I" V! r' J
• Growth;
. }" P; ~. k/ P: v2 l– Business goal - to increase in size
; _& f& T8 q n& E– Ratios tell us whether the company is achieving any growth
% Y5 \2 L( _/ R; t, b2 ]+ u% ~7 Q1 L. s" [, T
Interpreting the Ratios, ~) @) J: ^& k* `6 X2 \
• Profitability;, \7 Z0 g m/ P9 G3 b
– Vertical Analysis (of I/S)9 Z! ?( j+ c3 a1 d7 m3 Z: \$ M g
I/S items * 100 = % / _7 k5 @; D7 L- _8 J9 V
Sales
" c% E) R/ z# @0 T% J• Tells us it cost us X% of sales to make those sales
* Z. }$ Q* S' c– Return on Investment/Equity
9 c: c6 d* ~5 s# C! M$ zProfit ATB4D = % 6 X6 N' V" w, o
Average Equity
! f) {6 R8 _( E! c; s) ]! _[(Yr. 1 E + Yr. 2 E)/2]
) j a( s1 ~7 D, E; J• Tells us how much profit we made relative to the investment made by the owners; t V9 J8 a* i# |5 E5 G
( h7 W" e, Z6 b( C# R+ |- J- S) ]1 P• Stability;7 Z, W! ~4 v$ [4 L7 q9 M+ R- i
– Net Worth: Total Assets& I0 L* `4 B W
Total Equity = % 6 I$ P7 V. J' m1 c8 |. W2 f' N
Total Assets
# D) s, l1 u" b- G# d# r• tells us what % of assets were financed through owner’s money; y8 t: q/ W8 a3 X6 ?6 H
– Debt to Assets
8 r2 T g4 q `4 Q, XTotal Debt = %
1 n# [+ H. b, {Total Assets0 p* H: A* m a' _ P% [9 c( i
• Tells us what % of the assets were financed through debt
5 h4 _9 k, b2 w8 Z3 ~8 S' U- L7 e– Interest Coverage+ j, F' b) s4 ~6 ]& Y0 K
EBIT = # times
1 v1 p/ f8 A+ x0 I- K$ a0 SInterest Expense" Z6 C4 E2 R; ^$ }( \9 m
• tells us how many times we can pay interest4 E9 w- M& f3 h- S' k! E
. z, c, }/ i$ _1 N
• Liquidity;
+ @% F5 _2 s& W" d– Current Ratio1 s5 Y: l. o7 t, \, b% P
Current Assets = X:1
( h0 S6 x: b+ s& S2 ]Current Liabilities
+ F& u4 X1 \ o; ?• Tells us, if we liquidated all our current assets, how many times we can pay our debts
( {% U# P+ V! Z' E1 E: uRULE OF THUMB: 2:1
8 A" C7 j( k7 f( S; X3 A- q– Acid Test
4 s7 F1 m- H* Y' kCash + M/S + A/R = X:1, V! M" `3 N7 h
Current Liabilities
# h0 N5 W l$ T8 c• Tells us how many times we can pay our debts with the money easily available to us
% y1 f" l' [4 J0 T: O5 dRULE OF THUMB: 1:1, ]# G! E) ~4 q% S' G
l6 L% b! h& _– Working Capital2 y, E, R' U6 f8 w
C.A - C.L = $X
. }+ b5 P; g8 ^• Tells us how much money we have to work with AFTER s-t debts are paid1 q( k: `# B" u* f. x' m
_, B, e0 k2 V8 g+ mEfficiency;
7 t3 z2 q0 B) i" i4 y* j– Age of Receivables
( c, i2 K& j3 m8 H1 nAccounts Receivabl = # Days r- N, V- p2 k" h2 C
(Sales / 365)& y2 ?( q# U) [; P) E% E- @2 h
• Tells us how long it takes us to collect our $$
# W" i) m: _+ U2 B; I
6 _# v$ q; P' K& s7 b$ A– Age Of Payables
( R, ]' p0 K$ n! } y+ C) AAccounts Payable = # Days) |3 I& q+ g* \1 s
(Purchases* / 365)
& n. u% R8 k/ X* R t1 |0 }• Tells us how long it takes us to pay our bills
/ A, [5 M! |* g5 r* @7 o8 \2 A$ m: x% I, s
– Age of Inventory
$ l- l7 k w+ ~; ]% p% L+ P7 Q Inventory = # Days+ E# u# E5 f, ~9 _7 m1 f4 D
(COGS / 365)
" r4 c6 T, Z& Z* O• Tells us how long we are holding on to our inventory in the warehouse* d, m! b/ ^/ |8 l2 y5 M
" _# N0 L0 u& D. h8 u4 Y• Growth;" g# c- j" a1 x9 K* ]6 j, i* N
– Sales
/ [/ {( L9 x/ D9 [8 v. Y* h– Net Income
1 R# e' p' T, O6 \* g8 o, I# G– Total Assets
7 `8 Y7 g' b. {- H! h– Equity( Q" x7 B/ {: P# I
Yr. 2 - Yr. 1 = %/ F' B' q9 W" \* U4 ^. A$ c: g9 w8 u
Yr. 14 D% [% ?: Z" m, t: `; @7 P
• Tells us whether the accounts are growing (and hence the company)* C7 L, x& e' Y, Z4 Y& E4 H0 P
& S. M2 q N3 _9 N9 S( ?Understanding Ratios
0 I/ \0 ^6 R, b6 R v2 l e• DO NOT CONCLUDE THAT “THE RATIO IS GOOD/BAD”
- ], T7 t/ u' m) S( e+ O0 u• Either the NUMERATOR or the DENOMINATOR affects the ratio
, }# x7 J1 r1 n4 b6 E• Ask yourself: “WHY HAS THE RATIO CHANGED & WHAT DOES THIS MEAN?”% S8 O) {4 r& l( B. H
– Which number caused the change?0 R; i4 M! t r n
– Look for increasing or decreasing trends over time.
1 k+ Y8 G: [+ c– Will these trends continue?
1 l% r( B$ @; {! S0 F( B5 M5 j! [6 F– How does the company compare to the industry?
9 V" P- q6 z3 U. ]' z$ s" S1 r: p/ C' A4 J# x p
% b. d) S! {9 j0 V3 xClassifying Costs
/ |- ~- [* E) _& P. u5 j5 D4 @• Variable Costs) b# G" E5 q, ^( Q( U$ G
– a cost incurred with every unit sold/produced (volume)
" \2 N- p4 ?6 @6 C• Fixed Costs
: n& Z+ w* n1 Y3 o; K$ I3 H% t– cost that does not vary with volume |
|