Manajemen keuangan.lecture 6 min

Manajemen Keuangan

Ario, SST, SE Akt, MIEF

Overview (Diujikan)• Part 1: The Scope And Environment Of Financial Management

1. Definition of financial management2. Understanding Financial Statements, Taxes, and Cash Flows3. Evaluating a Firm's Financial Performance4. Financial Forecasting, Planning, and Budgeting

• Part 2: Valuation Of Financial Assets5. The Value of Money6. Risk and Rates of Return7. Valuation and Characteristics of Bonds8. Stock Valuation

• Part 3: Investment In Long-term Assets9. Capital Budgeting Decision Criteria10. Cash Flows and Other Topics in Capital Budgeting11. Capital Budgeting and Risk Analysis12. Cost of Capital13. Managing for Shareholder Value

Overview (Tidak Diujikan)

• Part 4: Capital Structure And Dividend Policy14. Raising Capital in the Financial Markets15. Analysis and Impact of Leverage16. Planning the Firm's Financing Mix17. Dividend Policy and Internal Financing

• Part 5: Working-capital Management And Special Topics In Finance

18. Working-Capital Management and Short-Term Financing19. Cash and Marketable Securities Management20. Accounts Receivable and Inventory Management

• Part 6: Special Topics In Finance21. Risk Management22. International Business Finance23. Corporate Restructuring: Combinations and Divestitures24. Term Loans and Leases

Chapter 13 Managing for Shareholder Value

• Main question: How can we be sure the assets will be managed and operated so as to maximize shareholder value?

• Who are the top creators of shareholder value?• Business valuation: the key to create shareholder value

– Accounting model– FCF model

• Value drivers• Economic Value Added• Paying for performance

Value Drivers

Who are the top creators of shareholder value? (1)

Who are the top creators of shareholder value? (2)

• MVA

• Assume Invested Capital = Total Assets

Business valuation: the key to create shareholder value (1)

• The accounting model• FCF valuation model

Business valuation: the key to create shareholder value (2)

Value Drivers (1)

Value Drivers (2)

Economic Value Added (1)

• MVA (particular point in time) Vs. EVA (specific interval of time)

Economic Value Added (2)

• Alternative to calculate EVA

Paying for performance (1)• Basic components of compensation policy

• Compensation program design

Paying for performance (2)

Ch. 14: Raising Capital in Financial Markets

1. The Financial Manager, Internal And External Funds, and Flexibility

2. The Mix of Corporate Securities Sold In The Capital Market3. Why Financial Markets Exist4. Financing Of Business: The Movement Of Funds Through The

Economy5. Components of The U.S. Financial Market System6. The Investment Banker7. More on Private Placements: The Debt Side8. Flotation Costs9. Regulation (self reading)

The Financial Manager, Internal And External Funds, and Flexibility

• At times, internally generated funds will not be sufficient to finance all of the firm's proposed expenditures. The corporation may find it necessary to attract large amounts of financial capital externally or otherwise forgo pr

• The financial market system must be both organized and resilient.

• Corporate profitability also plays a role in the determination of the internal-external

• The point for the executive: As economic activity and policy shape the environment of the financial markets, financial managers must understand the meaning of the economic ups and downs and remain flexible in their decision-making processes.

The Mix of Corporate Securities Sold In The Capital Market

• What type of financing vehicle is most favored?• Interest expense is deductible• The after-tax cost of capital on the debt is less

than that incurred on preferred stock.• The firm has unused debt capacity and the

general level of equity prices is depressed

Why Financial Markets Exist (1)

• Financial markets are institutions and procedures that facilitate transactions in all types of financial claims.

• mechanism is needed to facilitate the transfer of savings

• allocate the supply of savings in the economy to the demanders of those savings

• The rate of capital formation would not be as high if financial markets did not exist

Why Financial Markets Exist (2)

Why Financial Markets Exist (3)

The Movement of Funds Through The Economy

Components of The U.S. Financial Market System (1)

• Public offering• Private placement

– organized private equity market– organized private debt market

• Primary markets Vs. secondary markets• Money market: all institutions & procedures that provide

for transactions in short-term debt instruments• Capital market: all institutions and procedures that provide

for transactions in long-term financial instruments.• Organized security exchanges Vs over-the-counter markets

Components of The U.S. Financial Market System (2)

• Stock exchange benefits:– Providing a continuous market– Establishing and publicizing fair security prices– Helping business raise new capital

The Investment Banker

• A financial specialist involved as an intermediary in the merchandising of securities

• Functions:– Underwriting– Distributing– Advising

• Floatation costs: The underwriter's spread and issuing costs associated with the issuance and marketing of new securities.

Ch. 15: Analysis & Impact of Leverage• Business and Financial Risk• Break-even Analysis• Operating Leverage• Financial Leverage• Combination of Operating and Financial Leverage

Business and Financial Risk

• Business risk refers to the relative dispersion (variability) in the firm's expected earnings before interest and taxes (EBIT).

• Operating leverage The incurrence of fixed operating costs in the firm's income stream.

• Financial risk, conversely, is:– the additional variability in earnings available to the firm's

common shareholders – the additional chance of insolvency borne by the common

shareholder caused by the use of financial leverage• Financial leverage means financing a portion of the

firm's assets with securities bearing a fixed (limited) rate of return in hopes of increasing the ultimate return to the common stockholders.

Break-even Analysis (1)

• The objective of break-even analysis is to determine the break-even quantity of output by studying the relationships among the firm's cost structure, volume of output, and profit.

• BEP if EBIT level equal to zero• Fixed costs, variable costs & semi variable

Break-even Analysis (2)

• Total revenue• Contribution margin• BEP (in quantity)

• BEP (in dollar)

• Limitations BEP analysis

Operating Leverage• Operating leverage arises from the firm's use of fixed

operating costs.• The responsiveness of the firm's EBIT to fluctuation in sales

• The greater the sales level, the lower the degree of operating leverage

Financial Leverage (1)

• The practice of financing a portion of the firm's assets with securities bearing a fixed rate of return in hope of increasing the ultimate return to the common shareholders.

Financial Leverage (2)

Combination of DOL & DFL• The firm that by its very nature incurs a low level of fixed operating costs

might choose to use a high degree of financial leverage in the hope of increasing earnings per share and the rate of return on the common equity investment.