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- 获赠鲜花
- 2 朵
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- 100 金币
- 注册时间
- 2006-3-26
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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。4 c" w! s# q! ]9 g. c+ w0 l
( l) ]5 J& z+ Y( T- I! I: D, mGM Overview& B: K+ X7 V. p; {, v% x9 \0 M
• Role, Timing, Issues/Decisions, C&Cs
: N9 w+ F n8 H( m• Objectives) u, L- z3 e" N- Y( R2 u
– What do we “WANT” to do?7 ]! y1 I8 F# P
• External Analysis
1 O, x( w9 s$ E; p W; t– What do we “NEED” to do?: ?, S* x% P9 D6 T4 b& B
– PEST, Consumer, Competition, Trade
, b" f% O4 U4 s3 M* R5 y- Z• opportunities & threats
5 l& Q1 c) w) y/ w$ Z0 K* d– IMPLICATIONS: KSFs: p6 Z) D# R( M/ [ t/ p6 b" ^4 a
• Internal Analysis! P4 p8 [" j9 |0 M$ e T
– What “CAN” we do?
* E6 x2 j+ X7 f. h8 |# ?– Finance, Marketing, Ops, HR
% {: {, c I" F. \• abilities, strengths & weaknesses
8 M' u( s; e$ G$ V, L) D0 P– IMPLICATIONS: KSFs, CORPORATE CAPABILITIES
; e+ V8 V" d$ s& E- b& L! c7 _
5 {- a( I8 [& V1 r; W• Alternative Evaluation
3 w: ?# c$ D8 l– What are the options?2 M% \; B- q! Z; E0 {4 @ X/ \6 o! _* Q
– Evaluate the pros & cons of the options7 l+ c/ F6 _4 q5 g7 S
– How does this option “FIT”?, S! J; K# [% T# ~5 g$ T
– (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)/ `7 E5 ~2 G1 b5 S$ k
– Financial Feasibility (of AT LEAST 2-3 options that might “work”)
8 e: b B0 h8 M- |4 W$ M M6 J
7 }$ ]+ j* O2 L* }• Decision
/ \7 ?, q7 |7 Z1 J3 k* f$ |– Justify why you chose a particular option(s).' Q4 E5 t' Y4 D+ f6 M1 P
– YOU SHOULD BE CONVINCING
% P& w' J& k/ Q. [7 {. d" ]. O- Q# J& v• Which strategy best meets the firm’s objectives?/ z9 h7 J* V" U# m. z+ y6 x$ V
• Does it satisfy the personal objectives as well?8 b: U1 Z+ E. u! Z, w4 ?) |& m7 u
• Have you addressed the cons of the chosen alternative?) X% M: F3 o0 B, }1 T
• Is this decision consistent with the analysis you’ve done? EXPLAIN! (FITS)
% Y5 m, _7 a O4 @- q' O5 `• Why NOT the other options?1 q2 I5 I/ @& T2 B( V
• How does this choice affect Finance, Marketing, Ops and HR? What changes8 ~( b- |; p' I2 F3 e. P# g8 n5 d
need to be made?1 j9 Q1 q1 B* c' O
' Q0 o/ b+ k# ^1 K: i- e• Action Plan. C: c% R2 F7 }
• Map out a clear and precise implementation plan which includes;
+ a" { v& I) L5 F: _" S% Q4 d- P+ i– details which address what steps you have to take to implement your1 n' H* Z4 x" y1 u$ P
decision# b% n' U+ ^4 ~3 m; W
– details about timing0 q( p$ Y* _: `5 `- c
– details about WHO will be responsible for accomplishing the ‘task’- l4 \& ]) B1 ^& r6 Z
– how will you follow-up your plan (measure success)
. G% I* [6 w. D8 ^4 w– make sure to consider both the short term and long term" n' i1 n, S/ O5 c/ L8 K6 {
: }9 n8 S' j; z: N6 A
Firm Valuation
2 [5 M! }8 R @( ]$ k. m8 g8 m• Used to help managers determine the “price” of a company./ s% ?6 g3 V: k' B
• 3 methods of valuing a firm;; ?( {. [# `8 `5 Y" n8 H6 c
– Net Book Value
/ `5 C5 E: O% P9 Y– Economic Appraisal
' d) k( p f3 i# }( ~/ W– Capitalization of Earnings* @4 c" B* B. g9 _3 m6 j' N
• Using all 3 methods (if possible) helps us to determine a RANGE of what the
$ _4 b( o U; a$ O8 i6 B0 qcompany is worth.
9 f' K! m K2 x( @8 J7 p* m+ d! d$ e• THINK!!! What are you really selling? Will anyone pay for it? How much will they pay???$ d$ ^2 c2 u9 I
% Z( Q) e0 q# H0 I- _/ `: t" X# A
Net Book Value (NBV)3 V* D. R: x$ L! y% P8 N! v
– Total Assets - Total Liabilities
+ I* z! L2 r! W& G' }• a.k.a.. the equity
& {. s6 n' u }* |& |1 d– Does not account for the present market value of the assets* x0 _( m [7 H, z% u% b
– Calculated using the most recent given balance sheet Z( z* z8 v7 Y8 P2 W9 ]$ D" M
– Preferred method for banks, creditors, and/or buyers who are interested in selling off the assets of the business# y) r3 i) v, _& b* w/ n
& ~& ?& b, T! |% U# D! c Economic Appraisal (EA)5 i! n& z( E! s) a2 \/ j2 C
– Similar to NBV, but tries to reflect the current market value of the assets
7 M6 l+ q( N$ T– Total Appraised Assets – Total Liabilities
. v' H: d/ a$ A– Preferred by buyers who are interested in a company for its assets# F6 S' Q. X6 l7 H0 L2 R5 J0 U
0 I- s( R5 r7 B! {/ X1 j8 M
Capitalization of Earnings (CE)
0 @: Z9 O6 e- Q% R– Focuses on the I/S instead of the B/S
. ^6 ]1 o) N/ @+ N/ F• Attempt to value the company in terms of the future income it may provide.
9 O+ h- u) L6 J5 t# i; N– NPAT * P/E ratio = value
! i- J# \5 i7 M. V* }– Must evaluate two different earnings figures (to determine risk & range)% m: ^- n9 e: B U+ q- U
• Assuming changes (projected statement)+ B W( Z" Q$ }2 L0 t {7 E6 x
• Assuming no changes (current given I/S)
: ~% K7 w v7 n+ [– Select a reasonable P/E multiple/ u+ Y* l5 Y: u
– Preferred by buyers interested in the ongoing operation of the company (i.e.taking over as management)( ?0 Z W5 ^& e' x+ d
: x- M+ |* u$ X6 z
• P/E Multiple
& F- E$ k1 C; I; h" q0 z6 K– Rules of thumb;5 g7 w0 s1 l1 g7 n
• Mature industries with stable earnings tend to have multiples' b. H0 U& z9 }; y) L
from 5 to 15.4 e8 V+ {+ t" e* \& l, P
• High growth industries tend to have multiples exceeding 20.
/ t3 C* u" E& A0 M6 J4 S$ h) M• “Growth is good; risk is rotten!”
+ d; q0 T5 ~0 ]4 P. Q5 A. N% z& l– growth increases a multiple7 X g6 N; B# f1 m. \0 E
– risk decreases a multiple
4 Z# T: a# {0 {6 e2 q6 [8 Z- m9 J7 _/ {* b- n4 m4 Y# S. l
Their Associated Ratios# _3 m5 Q* _3 |5 H/ [- G
• Profitability;0 d# x: R7 p- N5 [* M' |$ {0 D
– Business goal - to make $$
& Y- R3 y- p/ p' g4 E9 ~– Ratios measures how much money we had to spend to make $X in sales
3 j1 S' ]" w B# h) q0 p& ?. ]• Stability;
7 ~* n& G5 f- ]1 T% C7 [! e– Business goal - to have a stable financial structure (balance its ownership of assets with debt and equity)
. }( K+ M5 t( c1 k# _0 n– Ratios measure the firm’s means of financing assets and ability to pay interest on debts9 {2 @7 c; N( [
# E4 `7 `5 e+ ~$ F: Q5 Financial Goals &Their Associated Ratios
- g! }3 {! q9 \( d2 n3 b$ ^ • Liquidity;4 ?8 N8 w C( u0 Q7 @7 r1 `# G% t* o+ M
– Business goal - ability to meet s-t obligations) K4 W* d7 k( P% ]% E
– Ratios measure how liquid the firm is (how able the firm is to pay its shortterm
4 v& F W, |5 vobligations)8 P. d% {+ x% H0 }4 e
• Efficiency;
& L# D2 y( H0 K: d; R$ I" L$ c– Business goal - to efficiently use assets
# H- }* E2 w5 K: Z) \+ R: i– Ratios tell us how efficiently we are using our investments
) K8 K7 x. F0 K3 l2 Y! w3 D" L9 \2 h1 O' X7 A8 Z
• Growth;
% Y8 p7 Q+ i3 ~9 z– Business goal - to increase in size
B o( A- z7 O/ e6 n– Ratios tell us whether the company is achieving any growth
( t1 ?; w" w; S+ a8 H3 ~0 Y1 G5 G* R6 N+ \: N* T8 c/ t! W4 X- ^) Z
Interpreting the Ratios# d0 ^ Q. ~- j
• Profitability;
$ }4 a* l* D$ i* p: T4 J" E– Vertical Analysis (of I/S)
, F$ n) ^$ {9 H4 _) S0 r6 ], VI/S items * 100 = % 8 d7 K/ N. q' N9 [& h
Sales b, E( F+ B. Y6 z j7 I0 e. T
• Tells us it cost us X% of sales to make those sales
' V6 n8 j" d7 G) w7 R1 C5 q+ d– Return on Investment/Equity# T7 Z k7 @- j
Profit ATB4D = %
4 D" R7 k C* h6 }Average Equity. @6 p; D' y- S8 {* `
[(Yr. 1 E + Yr. 2 E)/2]
( M) `4 B6 e' c• Tells us how much profit we made relative to the investment made by the owners
; A) `1 y1 _, Q+ Z' n/ ~
9 E8 r8 ]. N) U! I5 w• Stability;8 r* z5 r7 ]0 L6 ]
– Net Worth: Total Assets2 K* S; i5 N1 L! C' k" w
Total Equity = %
+ z) u9 x, E9 B+ JTotal Assets
2 X5 c: U$ {! f* V• tells us what % of assets were financed through owner’s money2 K3 m0 a2 p+ x" i( z" T
– Debt to Assets
. R) B, ? z5 d: v$ |" TTotal Debt = % ( @# p. {. A7 K4 D% o! @( O
Total Assets
2 y4 W1 q% G* h( O9 l C• Tells us what % of the assets were financed through debt) U$ |, L8 ]/ N7 X* \! i7 a1 A
– Interest Coverage
4 y( o% E' ~' v1 c0 e EBIT = # times
' z3 K6 |4 ~( e+ g% y( q8 _7 wInterest Expense
+ ?" `) O, @6 l• tells us how many times we can pay interest
8 W j n: m m( {" k& s; E1 I# D3 b/ ?3 h4 o$ ^1 F3 Z9 t
• Liquidity; x! o1 n2 a1 E, `8 \" l
– Current Ratio
( _" S" P, s5 p% ]1 M1 D2 SCurrent Assets = X:1
( S& f" D& _( O( zCurrent Liabilities$ R! C: F% Y# o0 Y- c
• Tells us, if we liquidated all our current assets, how many times we can pay our debts( s0 M; t' s" C) A+ [
RULE OF THUMB: 2:15 J7 a& X8 M G, c
– Acid Test
8 P& {9 C' K5 KCash + M/S + A/R = X:1, `( b2 s( N) x3 X+ I( V
Current Liabilities1 V' p" q9 F. W1 R" K
• Tells us how many times we can pay our debts with the money easily available to us
6 W9 o+ Q$ s) {- T! o3 j, TRULE OF THUMB: 1:1
A7 G2 {7 e) ^* I/ D" W. |
' ^& c- z8 l& O# p, i: P' l– Working Capital
0 t, E" K- k* }! Z) DC.A - C.L = $X
1 d6 ~9 ?. L4 l& w8 l• Tells us how much money we have to work with AFTER s-t debts are paid
6 S. }) n, r$ G! T6 u; z9 r3 E& K6 c- _7 ?: c) w) U
Efficiency;! z$ _ q+ m1 E! _8 j7 \$ ~3 g
– Age of Receivables
2 ]/ u1 ?0 x$ a3 dAccounts Receivabl = # Days
+ F/ H& N: {5 d$ Z" P* ~1 \ (Sales / 365)- k1 I, D' Q/ K* f9 z& _1 s( e' \
• Tells us how long it takes us to collect our $$9 u& ]3 j F8 ^: h
; I8 K' X. g2 U6 V# \– Age Of Payables
/ L' r- D' K; \$ f/ cAccounts Payable = # Days) |6 H9 v3 i1 ~# e6 q$ f1 ~
(Purchases* / 365)9 G4 M( U7 O h: n0 \- |$ X* H
• Tells us how long it takes us to pay our bills' j7 a9 V. }1 {+ s; Q& D
/ _8 L; R& r& v– Age of Inventory
% [5 u. A6 T# x% }$ c9 b Inventory = # Days% v4 c& n- ]7 k- f
(COGS / 365) B) R) G' a( z3 t H6 @$ f- c
• Tells us how long we are holding on to our inventory in the warehouse! c1 t% _" ^) H. g6 t5 J6 l
1 k( w" j( B4 L" P/ t6 l, x5 r• Growth;* _4 {+ ^2 ^! s2 _! W
– Sales
U! E4 [1 G k+ ?/ Z- l4 x9 {! r– Net Income
' f3 {6 V8 D/ ?7 T* Y5 F– Total Assets f" s( r8 v. y: p4 c, I. _
– Equity
% K H! i. A' \2 |$ G r* {: i$ nYr. 2 - Yr. 1 = %
+ l5 T+ E% m' _) [ Yr. 1
9 u$ L% W7 P6 l( a# I' p' @2 b• Tells us whether the accounts are growing (and hence the company)
3 L8 q4 ~# v* H9 K8 {: b# u; r" p7 a- l* @8 }& P" N
Understanding Ratios
' m4 b4 W! J+ q- F• DO NOT CONCLUDE THAT “THE RATIO IS GOOD/BAD”
; v) y" X3 s/ _3 u) g' Y, B. l• Either the NUMERATOR or the DENOMINATOR affects the ratio
& F1 v* X3 _3 ~7 p% T' U: }• Ask yourself: “WHY HAS THE RATIO CHANGED & WHAT DOES THIS MEAN?”" S, L! }; r6 b
– Which number caused the change?3 D3 a/ d" _! _- H8 D- n* w, T. V0 V
– Look for increasing or decreasing trends over time.( V( A* E4 A! s/ ~* Y) X
– Will these trends continue?
' Q- u6 p* K, x$ I7 }– How does the company compare to the industry?
, q8 ~" W- v' g9 _5 ^0 U. l0 o' C8 @* z( {( s! t) v
, J S8 F. ?6 l% T& B$ `' E* |* M
Classifying Costs
" b) r2 [5 t7 I. Z7 c& O/ K* X• Variable Costs0 A) x; D0 H! Y6 x7 B) H; c
– a cost incurred with every unit sold/produced (volume)
( X7 O7 o) c. e7 Y0 N5 ?5 l• Fixed Costs1 Y U j* ^8 X3 Z* j
– cost that does not vary with volume |
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