Samenvatting
Summary Corporate Financial Management
- Instelling
- Wageningen University (WUR)
Summary corporate financial management including figures
[Meer zien]Voorbeeld 3 van de 23 pagina's
Voorbeeld 3 van de 23 pagina's
In winkelwagengesponsord bericht van onze partner
Verkoper
Volgen
Voorbeeld van de inhoud
Corporate Financial ManagementFinancial manager tasks:
- Where to invest in
- How to finance it
- How to keep solvency in short term
Goal: maximizing net profits for the shareholders. – Maximize shareholder value, making a
company a cash-generating activity.
Primary market: when a corporation issues security (stocks or bonds), cash flows from
investors to the firm.
Secondary market: where the stocks are traded. Involve the exchange if already issued
securities between investors. Securities may be exchange traded or traded over-the-counter
in a dealer market.
Financial statements provide important information about the economic situation of the
firm.
- Financial statements do not express the risk
- Financial rates generally refer to performance in previous years.
Inflow -> decrease of assets or increase of debt
Outflow -> increase of assets or decrease of debt
Net working capital = current assets – current liabilities
- If positive, then the there is enough cash to pay the next 12 months.
Liquidity – ability to pay back short-term debts in time.
Liquidity ratios – ability to pay back all bills in the short run.
,Current ratio = current assets / current liabilities
- If you have a very high current ratio, you can start investing more, (geld laten liggen
op je rekening is niet goed).
Quick ratio = (current assets – inventories) / current liabilities
Solvency ratios – ability to pay back all debts when the firm stops to exist.
o Equity multiplier = total assets / equity
o Debt equity ratio = liabilities / equity
o Debt ratio = liabilities / total assets
o Times interest earned ratio = EBIT / interest payable
Asset management – Turnover ratios = the ability to use the assets effectively and efficiently.
o Asset turnover ratio = sales / total assets
o Sales per unit of asset
o Inventory turnover = cost of sales / average inventories
o Number of times a year the average inventory is sold
o Days in inventory = 365 / inventory turnover
o Number of days it takes to sell an average inventory.
Profitability ratios
o Return on assets = net income / total assets
o Return on equity = net income / equity
o (net) Profit margin = net income / sales
Market value ratios
o Earnings per share = net income / number of shares
o Price earnings ratio = price per share / earnings per share
o Market to book ratio = market value per share / book value per share
Lecture 2
Future / compound value = investment x 1 + interest rate.
Present / discount value =
Net Present Value:
- To calculate the incremental cost or benefit from adopting an investment.
FV =
Interest rate = or
Present Value =
, Net present value-
Effective annual interest rate / effective annual yield -
Multi-period compounding frequencies -
Compounding an investment m times a year provides end-of-year wealth of:
C0(1+ (r/m))m
C0 is the initial investment
R is the stated annual investment rate
o The stated annual interest rate is the annual interest rate without consideration of
compounding.
Compound every infinitesimal instant:
Perpetuity = A constant stream of cash flows without end
PV = c/r
Growing perpetuity = A constant stream of increasing cash flows without end
PV = C/(r-g)
Annuity = A level stream of regular payments that lasts for a fixed number of periods
Future value of an annuity:
Growing annuity:
Bond = (obligatie) is a certificate showing that a borrower owes a specified sum.
To repay the money, the borrower has agreed to make interest and principal payments on
designated ‘maturity’ dates.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper marijnedankaart. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €6,79. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 77254 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen