Part 1: Introduction Chapter 2:Financial Statement and cash Topic 1:So Sawh GAAP va IFRS GAAP: Angnia 'trains chap nhan Chung squy trinn, any tail - Ngts to sidung-chn yei8 My, phystap non, to cap what dink ki Inventory income st. Expenses Assets - - - - to him thi RuD In1 exp lower of cost or market value non? IFRS: Chuan mile BCTC - probin, itphultap, what / - Khoai mys das bit thap' - quan hon. LIFO OK crai flow - Kochapnhan Kids rack ring As vonnow is ok whatdink / - LFO - sintangible assets) Chapter 3:Financial Statement Analysis and Models Financial statements Analysis: 3. 1. a) standardizing statements: problem:Different size and currency work with -> common-size statements - percentages b) Ratios Financial Models: 3.4. the % of sales approach: ↳A2 (more with sales ↓ profit external financing needed strong sach pick ki ↑ istong do 3.5. adjust payout rate margin nonl phaicoyo Ion balance this in echo 2" balance sheet variable. sequity:div hoac liabilities), 19 "plug" External financing and growth: sales, assets it external financing needs. a) Internal growth rate: maximum growth rate without EFN ↳ retention rate b) the Sustainable growth Rate: maximum growth rate with no external constant debt-equity a) Determinants of Dupout identity: ROE = Profit perall - financing equity average = growth: margin x total asset x turnover Equity multipler net sales / 10 muon thi phai ching 4 mag requity dient yfo'nay Application (bankers - - Actual sustainable:investment (with excess money) Actual sustainable: way (to get) Why a loan applicant needs money, how long? creditors + a) Note: I left out cash flow size, risk and timing - not always right Chapter 6:Making capital Investment Decision Definitions of Operating cash flow: the same answer. If used correctly, lead to 6.4. Alternative as top-down approach: start at the top of income statement OCF:sales-cash costs b) - Taxes Bottom-up approach: project net ABT income: - taxes income Depre. (if no interest exp subtracted Net Oct. start with the last line (net incomes and add back + any norcasn deductions. Chapter Risk 7: Analysis, Real Options capital Budgeting and 7.1. Sensitivity, scenario, problem:NPV based Break Even - on cash Analysis: flows, which sometimes assensitivity and scenario Analysis: -sensitivity (what-if; bop-best, optimistic -variables and Revenue.Priceanan the manipulated pessimistic in Advantages: - - + indicate whether NPU should be trusted: ↓ false sense of security where needs more information Disadvantages: +when all NPV variables + some b) Break-even positive false - are related sense of scenario + security analysis analysis: profit:(Accounting-based) a -pretax contribution margin:sales price-war - - annual sales: total costs tax because ignore profit 0 = cost (sales units ity taX 0 -> = present value: NPU (revenues) NPU (total costs Aftertax costs, regardless of output: x EAC fixed costs x (1-tr) Deprex to (Equivalent annual costs tri this is profit" 4 Initial investment x : - + - held gai gong Accounting H + r)" cost= -it -> As (sales unit) antity v0+ FC: price x Quantity nhng time yettheir value of money + tax Monte Carlo simulation: 7.2. the basic model: Step 1:Specify cash flow: annual revenue, annual + Annual revenue: (quantity) entire by industry Units sold in this example I Market x share - Price (%) Annual cost:v8 FC+ Mit, selling cost Initial investment: - -> + incremental + cost of patent, Step 2: Specify Annual * a met, production test project's marketshare market price: (charge - giagot 1x industry (mill - khoang no's long market share wide +-3$ docho thanthuring / satuong,se each have sai -> the unrelated to Unitsold(a) demandi unit sales Bien are victy o hay more if industry 2 independent variables to this market share to or which - t huong) & initial - revenue: (thoing and facility distribution for each variable assume:unit sales for the overall - bi cost, initial investment ↓ 13 - -growth rate of industry unit sales in second wide year components "tren in him tai, rain tint growth rate at first I cas ham saw A Annual cost initial investment Hong th * - special attention to interactions between variables lineffective management + cost) 8 I price Step 3: The computer draws one outcome Random I so'o the cho mor bith-tinh ploutcome) tick plead bits = Step 4:Repeat the Repeat thousands Step 5:Calculate P(NPr > 0) 7.3. Real ... procedure of outcomes - chart NPV kien ray, dua vao distribution options 2.4. Decision trees course BA cocai: plan no lai nst) max-max cAK tot Min-max (Akxanthiplanno do thiet) output aprobability neighted avrage) ao what lay' Tbinh: chic -> Chapter8:Interest rates and Bond valuation 8.4. Inflation and interest rate: nominal: %. A you have nominal inflation real: - %. A you can = buy TIPS (Treasury inflation protected securities):based on real interest -Fisher effect:A inflation:A nominal - real: const - - International Fisher effect: -> Anominal (between nations) 8.5. - expected currency changing speed Determinants of Bond yields: Term structure of interest rates: ↳ relationship long-short term nominal, default - - numped Idecline at longer-term) 7 upward * interest rates: free, pure discount bonds of all maturities ↳ no risk of default, lump-sum future payment only downward ~ Determinants: - Real rate (minor impact +expected economic + maturities growth growth i (expectshort-term rater...) -> inflation premium ↓A offsetby interest risk premium still upward term -> -> inflation (strong) inflation - long short rates compensate: inflation premiums upward can reflectexpected to inflation -Expected -> ↓ assume: real: const (in practice:can t chumped' yield) -> -interest rate risk: maturity -> current it risk (at a combined effects of 6 factor decreasing rate) yield:CON coishathier hann) price Im sor 11) real interest rate is premiums:expected inflation, interest risk, default risk, taxabily, liquidity Chapter 9: Stock valuation 9.1. The pr of common stocks: as valuation of differenttypes of stock: e) Dividends Earnings:which to discount? or Dividends, that's cash flow investors - Note:A growth rate they since 9.3, - have dividend (or even:nodiv) a growth opportunities: EPS= Dir (payout 100%) Cash cow: lot growth opportunities entire dir atDate 1 to invest in NPU per share of the pr; as of Date 0 NPVGO a prj = crprof growing nete -> firm value without Tinh NPVGO:New Date 1 PrCy1):Outflow + Inflow = opportunity) additionwaters(per sharei but dai. Date PV(yo) (1) a coinflow (discounted)) discount laila -PV(y1) -> PV (y0) toin R NPVGU -> = PUCY0) share outstanding per share) Note: Firm value only when fund prj Earnings is retained to prj has NPV?0 (return rate > firm's discount rates calereturn, R:ran tearnings, air nerg ↓value) - - funds discountrate/required return =dir yield capital gain yield) ↳ Not -> to IR: = optimal suppose: retains gets 9.4. Comparables: price-to-Earnings a) Ratio: + PoS NPV model:growing opportunity based on Dir discount a (PEA Discount rate) PEA + LFO is FIFO (Iam +construction cost + phat- mua san dathon- (completed contracts is straight depreciation (accelerated is LIFO: NCOGS (EPS) NEarnings percentage of-completion) - line) b) Enterprise value: Most common:Ev EBITDA - emerge it EU include - industry may differ by leverage risk of equity -> impact R) debt equity impacted by merage Firms in the same - -> EBITDA la man so'viEU VIEBITDA diti to Igion'sPE di persuave) tinh tre khi bo interest payments
