BUS10 8-8-06 - Get Financing (Market) Operating period,...

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EPS Stock price? PE Multiples (Price/Earnings) A=$1 (Shoe) 8 8x B=$1 (Water purification) 17 17x C=$1 (Sofware) 63 63x Industry attractiveness Low Medium Very high PE multiples = more exciting industry. Debt: all debt/ total equity Leverage ROE – Return on Euqity S-T L-T Interna Cash throw Retained earnings Trade credit Debt Loans LT Loans Commercial paper Bonds Equity Sales Account Recievables A/P Vendors Bonds!!! Interest is tax deductible Pay dividends from net profit after taxes. Dividends have to pay 2 times of tax.
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Unformatted text preview: Get Financing (Market) Operating period, manage the use of the money. Manage the internal financing Control expenses Set budgets, monitor variances. 4 major areas to finance Day-to-Day operations Purchase of inventory Credit A/P & A/R Capital expenditure - replacing plant, buying computer system etc. (depends on use life)...
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