Basic Earnings Per Share (BEPS) Net Income - Preference Share Dividend

Outstanding Share

Net Income
Option of the Company
1. To give the shareholders / Investors the return of their investments = Dividends
2. Put it back in the operations of the company
3. Invest it

Net Income 1,500,000.00

Preference Share 1% 5,000,000 50,000.00 Pref Div (5,000,000 X 1%)
Ordinary Shares
Outstanding Share 10,000

Kalven - Ordinary Share 2,500 Shares

Basic Earnings Per Share (BEPS) 1,500,000 - 50,000

10,000
Kalven 2,500
BEPS 145
Total Earnings 362,500.00

Cost XXX
Less: Accumulated Depreciation (XXX)
Book Value / Carrying Amount XXX
2020 2021
10 9 Going concern - The company will continue its oper
1

Ordinary Share
Control 50 plus 1
Significant Influence 20

Tyne 1,000,000 1,000,000

Buy first what Tyne wants
House - Downpayment 200,000
Investment 800,000

Return Shares Value 25,000 Objective

Stocks Jollibee 1000 2,000.00 10,000.00 Dividend 10 per month

Vios Car - Gold 500,000 15,000.00 Grab 15,000 per month
25,000.00

Portfolio Management
a. Paper Money
Stocks Dividend
JFC - Jollibee 10,000.00
 Metropacific 8,500.00
TEL - PLDT 15,000.00
SMC - San Migue 5,000.00 38,500.00
Bonds
Money Market

b. Real Property
Land
Building
Airbnb 1 54,000.00
Airbnb 2 54,000.00 108,000.00

c. Business
Clothing business 50,000.00
Total Amount Income 196,500.00

•Fundamental analysts — These are persons who are interested in understanding and
measuring the intrinsic value of a firm.
Share of Stocks
Buyer - Shares of Stock
Investor 25-Mar-20 15-May-21
JFC - Ordinary Share ₱90.00 ₱168.00
1000 1000
Investment ₱90,000.00 ₱168,000.00 Market Value of the asset that you have
87%
Cost Potential Sales

•Activist investors — Activist investors tend to look for companies with good growth
prospects that have poor management.
Start a business
1. Traditional Method
Start from scratch
Kalven Milktea
2. Buying Companies
Merger
Equitable Bank Bought PCI Bank If you can't beat them join them

BDO Bought Equitable PCI Bank

PLDT Many Pangilinan Tele communication

Electricity Business
Bought Meralco

•Chartists — Chartists relies on the concept that stock prices are significantly influenced by
how investors think and act.

Acquisition San miguel Acquired Magnolia

Where still existing a different owner : San Miguel
Bought : Company
Merger A Co B Co Form new Company C Co
Owner: A and B Co

Divestiture
Proctor and Gamble San Miguel Corporation
Tide
Ariel
Pampers Sell Brand Product line

Spin-off
Proctor and Gamble Tide Corporation
Tide Profitable Corporation: Register Tide as a Corporation
Ariel
Pampers

Leverage buyout
Collateral
PLDT - Many Pangilan Doesn't have enough money to buy Meralco
Want to buy Meralco Manny Pangilinan borrowed money in the bank (BDO) 10M
Used Meralco as collateral.

Borrowed Bank 1,800,000 10% 180,000.00 Yearly he has to pay interest

Term 20 90,000.00 Yearly he has to pay principal
Monthly Payment
Bought Condo
Ortigas 1,300,000
Rent Income 50,000

Monthly Income
Rent Income 50,000.00 Cash
Expenses 15,000.00
Net Rent Income 35,000.00

Cash INFLOW (Received) 50,000.00

Cash OUTFLOW (Pay)
Interest 15,000.00
Principal 7,500.00 22,500.00
Net Cash INFLOW 27,500.00 Save in bank

·Synergy — potential increase in firm value that can be generated once two firms merge with each other.
Firm Value = Net Assets/Equity
A=L+E
E= A - L
Equitable Bank PCI Bank Equitable PCI Bank
Asset 1,500,000 Asset 850,000 2,350,000 Asset
Liabilities 250,000 Liabilities 150,000 400,000 Liabilities
Equity 1,250,000 Equity 700,000 1,950,000 Equity

·Control — change in people managing the organization brought about by the acquisition.
Corporate Finance -
Corporate finance deals with prioritizing and distributing financial resources to activities that increases firm value.
To make the company profitable
Firm Value = Net Assets/Equity
A=L+E
E= A - L

Equity
Normal Credit
Increase Credit
Decrease Debit Net Income
A = L + E (Investment + Additional Investmen + Revenue - Expenses)

Firm Value = Net Assets/Equity

E= A - L

Industry
Fastfood Research Kalven Fastfood
SEC
A 500,000 A 1,500,000 Income Sales
L 150,000 L 850,000 Expense Expense
E 350,000 E 650,000 Net Income
Industry
Fastfood Research
SEC Kalven Fastfood
A 500,000 A 1,500,000 750,000 2,250,000
L 150,000 L 850,000 850,000
E 350,000 E 650,000 750,000 1,400,000

A = L + E (Investment + Rev - Ex)

Cost leadership
Jollibee Mcdolibee
Cost Thigh 10 Cost Thigh 50
Spices 2 Spices 10
Box 3 Box 10
Total Cost 15 Lowest Cost 70

Sell 130 130

Cost 15 70
Gross Profit 115 per pc 60

Sold 10,000 Pcs

Gross Profit 1,150,000.00
 Share Dividend
Share

0,000 1,450,000.00 145

10,000.00

he company will continue its operation

Dividend 10 per month

Grab 15,000 per month 15000
30
500
he asset that you have

you can't beat them join them

g a different owner : San Miguel

 15,000.00
ay principal 7,500.00
22,500.00

with each other.

Desired No 1 Bank
BDO
1,250,000 3,600,000
150,000 550,000
1,100,000 3,050,000
that increases firm value.

Forecast
1,000,000 Cash Asset
250,000 -Cash Asset
750,000

ood
2,250,000 A

2,250,000 L&E