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536-5a_note[1] - 536-5a_note 11S Topic 5 Managing Operating Exposure(Chapter 12 I Outline A Identify Operating Exposure B Measure Operating

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536-5a_note, 11S FIN 536 – SU Page 1 of 4 Topic 5 Managing Operating Exposure (Chapter 12) I. Outline A. Identify Operating Exposure B. Measure Operating Exposure C. Manage Operating Exposure D. Skip pp. 304-309 II. Homework Assignment Chapter 12 End-of-Chapter Question 2, 4 End-of-Chapter Problem (P) No Exam Sample Problem (ES) 1-2 Supplementary Homework Problem (SH) 1-2 ========================================================= Class Notes I. DCF approach: Free Cash flows (FCF) A. Investment CF: 1. Capital investment 2. Working capital investment B. Operating CF: 1. Revenue: Price and Quantity a) Price elasticity: competition, product differentiation b) FX pass-through 2. Cost 3. Non-CF adjustment C. Terminal Value estimate D. Spreadsheet setup 2: 0 1 2 3 Operating CF NOPAT (EBIAT) * * * DEP * * * I. OCF * * * II. Terminal Value * Investment CF FA * * * NOWC * * * * III. Investment CF * * * * IV. FCF * * * *
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536-5a_note, 11S FIN 536 – SU Page 2 of 4 E. Spreadsheet setup 1: 0 1 2 3 Investment CF FA
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This note was uploaded on 11/07/2011 for the course FIN 536 taught by Professor Staff during the Spring '11 term at S.F. State.

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536-5a_note[1] - 536-5a_note 11S Topic 5 Managing Operating Exposure(Chapter 12 I Outline A Identify Operating Exposure B Measure Operating

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