Financial Planning Model Ingredients
Drives the model
Pro Forma Statements
The output summarizing different projections
Investment needed to support sales growth
Debt and dividend policies
The Balance-Sheet Model of the Firm
The Capital Budgeting Decision
The Capital-Structure Question
and The Pie Theory
The value of a firm is defined to be the sum of
the value of the firms debt and the firms equity.
If the goal of the management
of the firm is t
18.1 Different Types of Dividends
Many companies pay a regular cash dividend.
Public companies often pay quarterly.
Sometimes firms will throw in an extra cash dividend.
The extreme case would be a liquidating dividend.
Pada dasarnya merupakan sumber pembiayaan yang
disediakan oleh perusahaan professional (Perusahaan
Modal Ventura) yang bersedia membiayai perusahaan
kecil yang baru berkembang dengan menyertakan modal
ke dalam perusaha
Assume you have the following information on Project Gunpla:
Initial outlay -$1,100
Required return = 10%
Annual cash revenues and expenses are as follows:
Draw a time line and compute the
Bond - evidence of debt issued by a corporation or a
governmental body. A bond represents a loan made by investors
to the issuer. In return for his/her money, the investor receives a
legaI claim on future cash flows of the borrower. The iss
Sazabi, Inc. Balance Sheet
Balance Sheet as of December 31
($ in thousands)
$ 625$ 745
Net plant and equipment
Time Value Terminology
Consider the time line below:
PV is the Present Value, that is, the value today.
FV is the Future Value, or the value at a future date.
The number of time periods between the Present Value and
the Future Value
Fundamental Principles of Project Evaluation
Fundamental Principles of Project Evaluation:
Project evaluation - the application of one or more capital
budgeting decision rules to estimated relevant project cash
flows in order to make the investment decis
The Four Basic Areas of Finance
A Simplified Organizational Chart
Board of Directors
Chairman of the Board and
Chief Executive Officer (CEO)
President and Chief
Reasons for Holding Cash
Speculative Motive - the need to hold cash to take
advantage of additional investment opportunities,
such as bargain purchases.
Precautionary Motive - the need to hold cash as a safety ma