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 Finance18. 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 11 Capital Budgeting and Risk Analysis

• Risk And The Investment Decision• Methods For Incorporating Risk Into Capital Budgeting• Other Approaches To Evaluating Risk In Capital Budgeting

Risk And The Investment Decision (1)

• What Measure Of Risk Is Relevant In Capital Budgeting?

Risk And The Investment Decision (2)

Risk And The Investment Decision (3)

• Measuring Risk For Capital-budgeting Purposes And A Dose Of Reality – Is Systematic Risk All There Is?– Complications:

• Undiversified shareholders• The possibility of bankruptcy• Indirect costs of bankruptcy also• its implementation extremely difficult

– Therefore we will concern ourselves with both the project's contribution-to-firm risk and the project's systematic and not try to make any specific allocation of importance between the two for capital-budgeting purposes

Methods For Incorporating Risk Into Capital Budgeting (1)

• Certainty Equivalent Approach

Methods For Incorporating Risk Into Capital Budgeting (2)

• Risk-adjusted Discount Rates

• The primary difference between the certainty equivalent approach and the risk-adjusted discount rate approach involves the point at which the adjustment for risk is incorporated into the calculations.

Methods For Incorporating Risk Into Capital Budgeting (3)

• Historical data generally do not exist for a new project.– Beta Estimation Using Accounting Data– The Pure Play Method For Estimating A Project's

Beta

Other Approaches To Evaluating Risk In Capital Budgeting (1)

• Simulation

• Sensitivity analysis

• Probability tree

Other Approaches To Evaluating Risk In Capital Budgeting (2)

• Probability Tree Example

OTHER SOURCES OF RISK: TIME DEPENDENCE OF CASH FLOWS

• The end effect of time dependence of cash flows is to increase the risk of the project over time. That is, because large cash flows in the first period lead to large cash flows in the second period, and low cash flows in the first period lead to low cash flows in the second period, the probability distribution of possible net present values tends to be wider than if the cash flows were not dependent over time.

Ch. 12: Cost of Capital

• Key Definitions And Concepts• Determining Individual Costs Of Capital• The Weighted Average Cost Of Capital• Calculating Divisional Costs Of Capital: PepsiCo, Inc.• Using A Firm's Cost Of Capital To Evaluate New

Capital Investments

Key Definitions And Concepts

• Required rate of return Vs. Cost of Capital• The minimum rate of return necessary to attract an

investor to purchase or hold a security.• Differences– Taxes– Floatation costs

• Financial policy

• WACC

Determining Individual Costs Of Capital (1)

• Cost of Debt

• Cost of Preferred Stock

• Cost of Common Stock

• Drawbacks of cost of common stock calculation:– dividends are expected to grow at a constant rate g forever– we must arrive at an estimate of that growth rate.

• CAPM

The Weighted Average Cost Of Capital

Calculating Divisional Costs Of Capital

Using A Firm's Cost Of Capital To Evaluate New Capital Investments

• Recall that the cost of capital depends primarily on the use of the funds, not their source. Consequently, the appropriate cost of capital for individual Investment opportunities should, in theory and practice, reflect the individual risk characteristics of the investment.

• the firm's weighted average cost of capital is the appropriate discount rate for estimating a project's NPV only when the project has similar risk characteristics to the firm.

• An investment's risk characteristics as coming from two sources: – business risk; and

– financial risk