新手上路
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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。- K8 Q5 d4 I& r# F3 }0 H
" E* T) _0 `, E9 YGM Overview
$ S: g7 V* O+ O A• Role, Timing, Issues/Decisions, C&Cs
& ?. y( O$ Q$ V8 x; k• Objectives6 O0 y q! N8 g6 p: ]4 N
– What do we “WANT” to do?
4 O* ]2 [# t! W) @- o• External Analysis0 U1 R) u" @2 R
– What do we “NEED” to do?
9 q3 X+ W! `, B: K, N: D– PEST, Consumer, Competition, Trade
2 x: t' M9 t+ A2 Y5 X. ], S• opportunities & threats, e3 Q1 p$ \- e& b
– IMPLICATIONS: KSFs
# J8 A& ]( G1 z5 n+ ~( |! O• Internal Analysis# A5 }% E$ I! r V: i/ e6 @
– What “CAN” we do?
# v" U+ J0 `9 ~% B– Finance, Marketing, Ops, HR
; \9 U7 @1 ^1 R" C# ^, x$ h• abilities, strengths & weaknesses5 P6 i y5 s2 O" o. H8 I7 U8 V
– IMPLICATIONS: KSFs, CORPORATE CAPABILITIES4 K: l7 o; C% `8 l9 R) b
/ g$ e2 H& \% i% b• Alternative Evaluation& S& o L6 B% a8 r& P6 w9 J
– What are the options?6 a" S( R! P! g
– Evaluate the pros & cons of the options) R; U, y6 Y6 M
– How does this option “FIT”?% X, g& { W7 v
– (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)4 Z# J2 U. ^$ Z1 O! U/ x2 n
– Financial Feasibility (of AT LEAST 2-3 options that might “work”) & f) d. ]2 C1 r: ?. N0 X( c
$ m5 }$ h' v+ j( z7 }3 @9 V
• Decision0 L' X! X/ b1 q9 k0 ^) A
– Justify why you chose a particular option(s).
P0 b. j4 O- D– YOU SHOULD BE CONVINCING
/ q* d$ @5 _/ G% f! l- T• Which strategy best meets the firm’s objectives?7 Y- a1 d" N/ @0 z
• Does it satisfy the personal objectives as well?
: t, m: ^3 m/ J5 V$ P& h• Have you addressed the cons of the chosen alternative?
. _) S) n( n) ?6 X, i. ?• Is this decision consistent with the analysis you’ve done? EXPLAIN! (FITS)
! g1 c& s" W8 B7 }3 J" }, D& F• Why NOT the other options?* ?; Y [5 U* D3 U
• How does this choice affect Finance, Marketing, Ops and HR? What changes, i3 f, ]8 X+ Y: b2 v, P
need to be made?1 ~' f# E; y2 I5 c) Z7 r& `2 I% u
4 o, A! V- R5 ~1 E' y• Action Plan
7 M. X! m8 t5 i; Q; X* p• Map out a clear and precise implementation plan which includes;
. T$ K# C; f8 G– details which address what steps you have to take to implement your
) \: _6 o: |3 {7 J# Edecision5 d& A1 k& b7 ? F2 s" _) N0 h4 |4 t
– details about timing% l& k$ E0 y0 N" a7 X, t+ G8 [9 c$ B
– details about WHO will be responsible for accomplishing the ‘task’
3 L& l# p( E6 F– how will you follow-up your plan (measure success)1 y5 N) B' _5 R- f, _4 i0 R& K
– make sure to consider both the short term and long term
4 G) l+ k; ~0 I1 j) z& ^- b
% ]0 I/ E4 D& f+ ~Firm Valuation+ l9 E8 Q3 v, x5 G) C. X' k/ W
• Used to help managers determine the “price” of a company.
/ T# ?9 B1 P2 D+ w0 h* f• 3 methods of valuing a firm;" H+ r! `$ N j; \5 C
– Net Book Value" U; o& ^1 I. {8 f
– Economic Appraisal7 Q, S7 \9 p- ]( _3 Q0 h2 R
– Capitalization of Earnings
0 W% x. v1 o2 t( l2 M( O• Using all 3 methods (if possible) helps us to determine a RANGE of what the+ y0 {7 Q l0 y, y, v
company is worth.4 H' {" d9 g+ x7 F
• THINK!!! What are you really selling? Will anyone pay for it? How much will they pay???
7 h3 B& b) q: Q. w. q& T2 Z
L' w+ A0 Z/ V3 o, }! ^ Net Book Value (NBV)
2 X$ ]. J. N' V9 V0 T– Total Assets - Total Liabilities" k, o% H: k! ^. J# K9 E8 r- X" a& ?
• a.k.a.. the equity
5 K) C2 B! l* P- \# x% w* m– Does not account for the present market value of the assets
4 W0 ?- {* ~. t: m$ q– Calculated using the most recent given balance sheet3 \3 v4 i& T0 |7 U5 L
– Preferred method for banks, creditors, and/or buyers who are interested in selling off the assets of the business2 k; C+ O0 R5 M$ I: O
7 f, G% d2 B& [9 K- a- P+ i
Economic Appraisal (EA)
+ b; ^4 k7 | H" q+ e– Similar to NBV, but tries to reflect the current market value of the assets9 n1 o3 P3 y4 U8 ^5 e7 H
– Total Appraised Assets – Total Liabilities+ P2 r) p# g5 _! V# U
– Preferred by buyers who are interested in a company for its assets( i; s1 c( n( ?$ E- |* m) n
2 W$ t) I5 i/ _* o
Capitalization of Earnings (CE)3 b) ~0 O$ ]$ M9 _
– Focuses on the I/S instead of the B/S& }0 l; |6 U( A$ X1 ~. o/ O
• Attempt to value the company in terms of the future income it may provide.
0 a% ~8 C* n2 P$ R– NPAT * P/E ratio = value
2 [! c4 i$ l- D1 l& ]– Must evaluate two different earnings figures (to determine risk & range)
. l# O. v% l6 ]3 ~; c• Assuming changes (projected statement)* n# R2 u' I t: G
• Assuming no changes (current given I/S)3 m; t% S1 N& a1 X1 g O
– Select a reasonable P/E multiple. B2 w. y/ {+ L1 p& a$ W7 F$ j9 s
– Preferred by buyers interested in the ongoing operation of the company (i.e.taking over as management)
2 E: V1 _3 { b3 l# s r/ P7 |- }$ F
• P/E Multiple
u/ D! d# {- E& h9 T+ b+ [– Rules of thumb;% u0 s2 i( e9 h, u( M% r R3 b( u
• Mature industries with stable earnings tend to have multiples) z% R! ~2 h4 H$ G/ ^
from 5 to 15.5 {" a% g2 O) O9 O2 B, T
• High growth industries tend to have multiples exceeding 20.
3 a# |! }" g) a2 s7 W• “Growth is good; risk is rotten!”* h. E H6 B+ \& \" [8 F" F
– growth increases a multiple
6 b6 {# q- P, R( N- v– risk decreases a multiple
3 J5 \# h7 n4 ~. W: Q3 z: e, x2 P. b) B
Their Associated Ratios" F3 x W- G2 h. ^0 |% {! \; R9 S
• Profitability;! W7 O# R7 C4 Y1 J H9 ]8 G
– Business goal - to make $$5 c. ?& ^* s# s! n9 E# N5 \- q
– Ratios measures how much money we had to spend to make $X in sales0 j: q# `# r c
• Stability;
?0 u0 G o) Q– Business goal - to have a stable financial structure (balance its ownership of assets with debt and equity)5 L& @8 B8 V$ p9 @# g
– Ratios measure the firm’s means of financing assets and ability to pay interest on debts
7 j Y7 z+ }. {3 A# P
2 J# \$ s2 I3 r5 Financial Goals &Their Associated Ratios
2 u* s, v, d, x9 d6 X3 l$ i, ` • Liquidity;" m! N+ L: I- V- x& |! M" s, E
– Business goal - ability to meet s-t obligations" {* |' F) @" T5 b( s
– Ratios measure how liquid the firm is (how able the firm is to pay its shortterm
' ~. _' x* v, a' w4 r/ Y/ a% cobligations)4 v/ v# J# I3 p& W
• Efficiency;; ^0 E" M* |* P: }
– Business goal - to efficiently use assets
, I" b/ \. e/ H" X8 E– Ratios tell us how efficiently we are using our investments& Q. @! r- V7 E9 A& H: {( j; D
% I @2 `. t: p3 h! y& B
• Growth;$ m2 V5 x, X/ x; w
– Business goal - to increase in size
) X# {0 G8 ]3 A– Ratios tell us whether the company is achieving any growth
5 N$ b6 ]+ Y$ d2 _) x
/ m3 V2 l. m! g5 d2 t3 k* }Interpreting the Ratios
: r U0 z$ t( R" a6 `7 h• Profitability;
# G# O4 X$ x0 i8 Z, ?– Vertical Analysis (of I/S)) M3 }8 `+ [; M/ m
I/S items * 100 = %
, }. o6 Z1 O3 ]5 k$ z' y" Z Sales
- T* m; R- T1 O+ I• Tells us it cost us X% of sales to make those sales
1 v; A7 N7 [8 n1 B: R( a– Return on Investment/Equity: z {( Y( |! x/ A6 G- ~; F2 g N0 p
Profit ATB4D = % 3 h; r, L$ i7 {8 d3 k4 O/ _
Average Equity, Q* O- P, y2 }7 L! I, f
[(Yr. 1 E + Yr. 2 E)/2]
" |8 N" u% H* F; ^& b• Tells us how much profit we made relative to the investment made by the owners
9 b: c& b5 H: @0 S$ Y/ o8 r! |( @$ V1 P* J8 G
• Stability;" [$ A! d! _6 n- u/ O1 q9 w
– Net Worth: Total Assets
) [7 e( ~: X9 n* n- TTotal Equity = % . _1 ~ I" i7 z J# H5 T
Total Assets
! V, I* E% c. Z1 O• tells us what % of assets were financed through owner’s money4 C) q; W7 N2 R: z5 l. H( S4 v8 T
– Debt to Assets4 c( ?6 J9 _/ _1 V$ w* b
Total Debt = % . ^" N1 p0 Z" N' D* x
Total Assets; \& W% G+ @3 Y( u
• Tells us what % of the assets were financed through debt& I$ w4 K" G; k
– Interest Coverage# i/ Y0 ]' h9 @# c* f
EBIT = # times& X, x& x$ a: g9 i: F- F' M% t
Interest Expense
T% J0 z I7 O' k+ D! _0 c+ W) `9 t• tells us how many times we can pay interest
9 k( F1 |6 y! `! T2 |( _5 M( P3 f5 Q4 |! M1 |' u, H
• Liquidity;$ j8 H; z. r7 s
– Current Ratio: D2 x" @% b7 w, l3 S6 U2 z- o: k
Current Assets = X:1) ~ `$ Z( M, U! f2 u
Current Liabilities
# v4 a; r* T# _0 I( a x• Tells us, if we liquidated all our current assets, how many times we can pay our debts
% K! O7 |" G, _- H9 d+ B9 mRULE OF THUMB: 2:14 Z) J) f2 u% \( H0 g3 j* j
– Acid Test, r# Y# K, \9 N2 ]+ B" [
Cash + M/S + A/R = X:1
- M; d- U* G+ e6 g- t+ K" bCurrent Liabilities9 D" @' R. J/ [- _
• Tells us how many times we can pay our debts with the money easily available to us
1 ]& }) C) ^) t% TRULE OF THUMB: 1:1
, V2 D. c' w- L/ |" i2 q
- w& ]0 A+ i0 j9 f$ U; p) [– Working Capital7 V% H- V# t0 E% c2 o
C.A - C.L = $X. D4 s9 k* V$ f6 O6 J2 B6 n
• Tells us how much money we have to work with AFTER s-t debts are paid
8 B2 A8 g# ^$ p2 J3 h$ r; D. w: K1 p0 a
Efficiency;! z. o! V* Q1 O; U: ]+ O
– Age of Receivables
( F, g* x8 t5 j( d. R' h$ ~Accounts Receivabl = # Days; Z" R1 d# F, A# K/ G
(Sales / 365)
7 c6 M6 H" o( F3 w9 B• Tells us how long it takes us to collect our $$6 G% n- l0 Z8 n0 r( s& W+ V
' N! A' y( H1 u9 a1 F1 E* z– Age Of Payables
* g9 O/ d4 Q& I( C- y! M" C6 sAccounts Payable = # Days3 \+ C4 q6 @# B0 Z* D+ E) y
(Purchases* / 365)2 S* }1 l- t; |7 o
• Tells us how long it takes us to pay our bills: X2 g) |0 i7 p% M6 ~9 @: I& s* u+ r
/ h* y# t4 I& R: ~! x
– Age of Inventory
. P% s3 p! \( E/ k4 c; C Inventory = # Days7 F/ F5 F+ N( R! d0 }: u Z# ?
(COGS / 365)' f( ?& E$ x$ O0 @4 l- X; R
• Tells us how long we are holding on to our inventory in the warehouse
" {8 T. F5 Z* m
9 l D0 l7 y' N7 D& g+ q• Growth;
& F9 k8 q3 U$ e2 z4 h( F– Sales
2 p/ L8 e% y6 q5 p! _4 \– Net Income
2 q+ k0 Q) K5 \" Z9 B8 i2 F/ C– Total Assets& ?2 e+ h8 ?% n% x8 N$ {, I
– Equity
; H. i4 X0 l$ G# uYr. 2 - Yr. 1 = %+ m4 _( ~) d1 ?, f0 e+ F0 _" y* f
Yr. 1/ i# D2 |" S" {2 h6 y4 a3 E, R) s
• Tells us whether the accounts are growing (and hence the company). x8 w5 O- D9 z
* A: J) E1 I/ Y w) \
Understanding Ratios
3 k% e- k& w9 j* T& }0 V• DO NOT CONCLUDE THAT “THE RATIO IS GOOD/BAD”
$ [8 Z( a3 G# |2 W2 J1 j2 e. p• Either the NUMERATOR or the DENOMINATOR affects the ratio
- y5 H5 L. q6 Z5 t- R7 t9 e6 D• Ask yourself: “WHY HAS THE RATIO CHANGED & WHAT DOES THIS MEAN?”
! {& ]- p/ N! R% F+ C) G– Which number caused the change?: i, Q% }! ~5 a3 G9 t
– Look for increasing or decreasing trends over time.' L4 |1 U/ E( v6 V; {; [) O
– Will these trends continue?
/ M: ^( c, M- p& S1 a' d0 B/ ~– How does the company compare to the industry?
7 t7 L0 x4 m+ t0 _& n/ W( S. }& K. h% \5 `
4 y: W! g7 F2 s0 PClassifying Costs0 T2 p; V% E$ p" P% e) j
• Variable Costs% _/ S- I$ p9 a% a" Z: W& j
– a cost incurred with every unit sold/produced (volume)4 {% K$ F& P0 S( O3 C) B
• Fixed Costs
6 J+ v) n" E- o0 F. g6 l; f, j0 h– cost that does not vary with volume |
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