FREQUENTLY USED SYMBOLS

ACP : Average collection period

ADR : American Depository Receipt
APR : Annual Percentage Rate
AR : Accounts receivable
b : Beta coefficient, a measure of an asset’s market risk
bL : Levered beta
bU : Unlevered beta
BEP : Basic earning power
BVPS : Book value per share
CAPM : Capital Asset Pricing Model
CCC : Cash conversion cycle
CF : Cash flow; CFt is the cash flow in Period t
CFPS: Cash flow per share
CR : Conversion ratio
CV : Coefficient of variation
Δ : Difference, or change (uppercase delta)
Dps : Dividend of preferred stock
Dt : Dividend in Period t
DCF : Discounted cash flow
D/E : Debt-to-equity ratio
DPS : Dividends per share
DRIP : Dividend reinvestment plan
DRP : Default risk premium
DSO : Days sales outstanding
EAR : Effective annual rate, EFF%
EBIT : Earnings before interest and taxes; net operating
income
EBITDA : Earnings before interest, taxes, depreciation, and
amortization
EPS : Earnings per share
EVA : Economic Value Added
F (1) : Fixed operating costs
F (2) : Flotation cost
FCF : Free cash flow
FVN : Future value for Year N
FVAN : Future value of an annuity for N years
g : Growth rate in earnings, dividends, and stock prices
I : Interest rate; also denoted by r
I/YR : Interest rate key on some calculators
INT : Interest payment in dollars
IP : Inflation premium
IPO : Initial public offering
IRR : Internal rate of return
LP : Liquidity premium
M (1) : Maturity value of a bond
M (2) : Margin (profit margin)
M/B : Market-to-book ratio
MIRR : Modified Internal Rate of Return
MRP : Maturity risk premium
MVA : Market Value Added
n : Number of shares outstanding
N : Calculator key denoting number of periods
N(di) : Represents area under a standard normal distribution
function
NOPAT : Net operating profit after taxes
NOWC : Net operating working capital
NPV : Net present value
P (1) : Price of a share of stock in Period t; P0 = price of the stock
today
P (2) : Sales price per U

Pf : Price of good in foreign country

Ph : Price of good in home country
PN : A stock’s horizon, or terminal, value
P/E : Price/earnings ratio
PMT : Payment of an annuity
PPP : Purchasing power parity
PV : Present value
PVAN : Present value of an annuity for N years
Q : Quantity produced or sold
QBE : Breakeven quantity
r (1) : A percentage discount rate, or cost of capital; also denoted
by i
(2) : Nominal risk-adjusted required rate of return
¯r “r bar,” : historic, or realized, rate of return
^r
“r hat,” an : expected rate of return
r* : Real risk-free rate of return
rd : Before-tax cost of debt
re : Cost of new common stock (outside equity)
rf : Interest rate in foreign country
rh : Interest rate in home country
ri : Required return for an individual firm or security
rM : Return for “the market” or for an “average” stock
rNOM : Nominal rate of interest; also denoted by iNOM
rps (1) : Cost of preferred stock
(2) : Portfolio’s return
rPER : Periodic rate of return
rRF : Rate of return on a risk-free security
rs (1) : Required return on common stock
(2) : Cost of old common stock (inside equity)
ρ :Correlation coefficient (lowercase rho); also denoted by R
when using historical data
ROA : Return on assets
ROE : Return on equity
RP : Risk premium
RPM : Market risk premium
RR : Retention rate
S (1) :Sales
(2) : Estimated standard deviation for sample data
(3) : Intrinsic value of stock (i.e., all common equity)
SML : Security Market Line
Σ : Summation sign (uppercase sigma)
σ :Standard deviation (lowercase sigma)
σ2 :Variance
t : Time period
T : Marginal income tax rate
TVN : A stock’s horizon, or terminal, value
TIE : Times interest earned
V : Variable cost per unit
VB : Bond value
VL : Total market value of a levered firm
Vop : Value of operations
Vps : Value of preferred stock
VU : Total market value of an unlevered firm
VC : Total variable costs
w : Proportion or weight
wd : Weight of debt
wps : Weight of preferred stock
ws : Weight of common equity raised internally by retaining
earnings
wce : Weight of common equity raised externally by issuing
stock
WACC : Weighted averaged cost of capital
X : Exercise price of option
YTC : Yield to call
YTM : Yield to maturity
 I. An Overview of Financial
Management.
Brigham :
Semua perusahaan sukses mampu mencapai
tujuan utama :
1.Semua perusahaan yang sukses mengidentifikasi,
menciptakan, dan memberikan produk atau layanan
yang sangat dihargai oleh pelanggan - sangat
dihargai sehingga pelanggan memilih untuk membeli
dari mereka daripada dari pesaing mereka.
2.Semua perusahaan yang sukses menjual produk /
jasa mereka dengan harga yang cukup tinggi untuk
menutupi biaya dan memberi kompensasi kepada
pemilik dan kreditor untuk penggunaan uang mereka
dan risiko mereka.

Produk/jasa laku terjual dari pada pesaing dengan

harga yang tinggi, sehingga seluruh biaya
terbayarkan dan mendapat laba yang selalu naik.

Atribut Kunci Perusahaan Sukses :

Pertama, perusahaan yang sukses memiliki orang-orang
yang terampil di semua tingkat di dalam
perusahaan,termasuk pemimpin, manajer, dan
tenaga kerja yang cakap.
Kedua, perusahaan sukses memiliki hubungan yang
kuat dengan kelompok di luar perusahaan/
stakeholders
Misalnya, perusahaan sukses mengembangkan hubungan
win-win dengan pemasok dan unggul dalam
manajemen hubungan dengan pelanggan.

Ketiga, perusahaan yang sukses memiliki cukup

dana untuk melaksanakan rencana dan
dukungan mereka operasi mereka
Sebagian besar perusahaan membutuhkan uang tunai
untuk membeli tanah, bangunan, peralatan,
dan bahan. Perusahaan dapat menginvestasikan
kembali sebagian dari pendapatan mereka, namun
sebagian besar berkembang perusahaan juga harus
meningkatkan dana tambahan secara eksternal dengan
beberapa kombinasi penjualan saham dan / atau
pinjaman di pasar keuangan. --> Manajemen
Keuangan.
Kunci sukses :
Memiliki tenaga kerja yang profesional, hubungan
baik dengan stakeholder yang baik, memiliki
sumber dana yang cukup

LIFE CYCLE CORPORATE (Brigham) :

1.Starting up as a Propietorship (Pemilik usaha satu
orang ).
2.More than one owner = A Patnership.
3.Many Owners = A Corporation.
4.Growing and Managing Corporation go public.
Diawali IPO ( Initial Public Offering).
Muncul Agency Problem.
Ada control untuk Corporate Governance.

MANAJEMEN KEUANGAN
 Manajemen Keuangan merupakan aktivitas dalam
memperoleh menyimpan dan menggunakan
sumber dana, mengevaluasi rencana
investasi ,mengelola asset dan mengelola laba
perusahaan yang diperoleh.

Pengertian tersebut mengandung unsur fungsi :

1. Keputusan pendanaan
2. Keputusan Investasi
3. Keputusan Dividen& pengelolaan asset

MEMAHAMI MANAJEMEN KEUANGAN

Teori Anglosaction.
Pengelolaan Manajemen Keuangan dapat digambarkan
sebagai berikut (Brealy &Meyrs) :

Operasi Perusahaan 2 Manajer 1 Bank, Asuransi

* Rutin ( Current Keuangan Capital Market

Assets) 4b. (Investor)
* Pengembangan
(Real Assets). 4.a
Laba/Rugi 3 4

Makna dari gambar tersebut :

1. Mencari sumber dana yang efisien dari :
a. Bank
b. Pasar Modal (dengan penerbitan Efek)
2. Membelanjakan dana untuk : 1
 a. Operasi perusahaan rutin (Modal Kerja)
b. Pengembangan (Investasi) ------> 2
3. Mengelola laba perusahaan
4. a. Membayarkan dividen 3
4. b. Menarik kembali dividen untuk ekspansi

Dapat dikelompokkan sebagaimana pengertian di atas

1.Financing Decision (1, 2a)

2.Investment Decision (2b)
3.Dividend Decision (1.b,3, 4a, 4b)

Teori Continental.
Lingkup Manajemen Keuangan menggunakan pendekatan
Neraca, bahwa dalam neraca terdapat :

1).Aktiva , yang terdiri dari :

a). Aktiva Lancar : Lingkup tentang Modal Kerja /
Financial Decision .
b). Aktiva tetap : Lingkup tentang Investasi Fisik
Investment Decision.

2).Pasiva , terdiri dari :

a). Hutang
b) Modal Sendiri Dividend Decision.

MANAJEMEN KEUANGAN, dalam Keilmuan dibagi

dua :
a. Keuangan Perusahaan ( Corporate Finance)
 b. Investasi ( Investment).

TUJUAN MANAJEMEN KEUANGAN.

Aktivitas dalam Manajemen Keuangan ditujukan

untuk memaksimumkan value perusahaan.

BREALLY DAN MEYRS :
Value perusahaan dapat diukur sebagai berikut :
1.Bagi perusahaan yang telah go public :
a.Maksimisasi kemakmuran pemilik
perusahaan yaitu pemegang saham.
b.Memaksimumkan harga saham
perusahaan
Ukuran Kuantitatip dari value/ kemakmuran pemegang
saham dari Earning per Share (EPS)

EAT ( Sekarang + PV. Yad)

EPS =
Jumlah Lembar Saham (Pemilik)

Jadi value sama dengan E.P.S (Earning Per Share)

EAT dalam perhitungan tsb untuk kapan ?

Jawabanya untuk :
  Sekarang (hasil dari Modal Kerja) dan Yang akan
datang (hasil dari Investasi), dan EAT yang akan
datang dinilai sekarang atau di present value (PV)
PV EAT = Nominal EAT x Discounted Ratio.
Discouted ratio dari Wieghted Average Cost of Capital.
EAT1 EAT2 EATn
PV EAT = ---------------- + -------------- + --------------
( 1+ WACC)1 (1+WACC)2 (1+WACC)n

BRIGHAM :
Tujuan Manajemen Keuangan :
Value mximization, menjadikan Stock holder wealth
maximization.
Ukuran Value :
1 Value Free Cash Flow (FCF)  naik
2.Harga saham naik

FCF = NOPAT – NIOC

[ EBIT X (1-Tax)]- (nilai investasi fisik 1 tahun)

[Net Sales (Revenue) – Operating Cost] x(1-tax) –

[nilai Aktiva 31/12 – nilai Aktiva 1/1].

Value = FCF didiscounted discounted =

1
dikalikan
( 1 + WACC) cost of capital.

FCF0 FCF1 FCFn

Value = ---------------- + -------------- + --- --------------
( 1+ WACC)0 (1+WACC)1 (1+WACC)n

BENEFIT dari Maximisasi VALUE :

 1. Sebagian besar pemilik masyarakat.
2. Terdapat consumer benefit, adanya efisiensi cost
operating.
3. Employees benefit.

Action MANAGERIAL dalam mencapai Maximisasi

Value :
1. Asset apapun akan berharga, jika menghasil kan kas.
2. Arus kas tunai lebih cepat lebih baik.
3. Investor enggan terhadap risiko, maka minimumkan
risiko.

CAPITAL dari Financial Secundary :

Capital berasal dari :
1.Mortgage = Hipotik BANK
2.Bond = Obligasi -----> DEBT
3.Stock = Share = Saham ------> EQUITY
4.Derivatives = Warrant, Option Right

CAPITAL MARKET. Cost of Money

(Primer + Sekunder = BEI)

Cost Of Money = interest ----> Bank konvensional

Bank Syariah = 1.Mark up

2.Profit sharing
3.Ujroh
4. Fee / Upah.
 Fundamental Cost of Money :
1.production opportunity
2.Time preference for consumption
3.Risk
4.Inflation

Policies yg mempengaruhi Cost of Money:

1.Kebijakan Bank Sentral
2.Budget Negara , surplus – Defisit
3.Aktivitas Bisnis
4.Perdagangan Internasional, suplus- defisit.
5.Risiko Internasional
6.Nilai tukar.

Mini Case 1:
Assume that you recently graduated and have just reported to work as an
investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the
firm’s clients is Michelle DellaTorre, aprofessional tennis player who has just
come to the United States from Chile. DellaTorre is a highly ranked tennis player
who would like to start a company to produce and market apparel she designs.
She also expects to invest substantial amounts of money through Balik and Kiefer.
DellaTorre is very bright, and she would like to understand in general terms what
will happen to her money. Your boss has developed the following set of
questions you must answer to explain the U.S. financial system to DellaTorre.
a. Why is corporate finance important to all managers?
b. Describe the organizational forms a company might have as it evolves from a
start-up to a major corporation. List the advantages and disadvantages of each
form.
c. How do corporations go public and continue to grow? What are agency
problems?
What is corporate governance?
d. What should be the primary objective of managers?
(1) Do firms have any responsibilities to society at large?
(2) Is stock price maximization good or bad for society?
(3) Should firms behave ethically?
e. What three aspects of cash flows affect the value of any investment?
f. What are free cash flows?
g. What is the weighted average cost of capital?
h. How do free cash flows and the weighted average cost of capital interact to
determine a firm’s value?
i. Who are the providers (savers) and users (borrowers) of capital? How is capital
transferred between savers and borrowers?
j. What do we call the price that a borrower must pay for debt capital? What is
the price of equity capital? What are the four most fundamental factors that
affect the cost of money, or the general level of interest rates, in the economy?
k. What are some economic conditions (including international aspects) that affect
the cost of money?
l. What are financial securities? Describe some financial instruments.
m. List some financial institutions.
n. What are some different types of markets?
o. How are secondary markets organized?
(1) List some physical location markets and some computer/telephone
networks.
(2) Explain the differences between open outcry auctions, dealer markets, and
electronic communications networks (ECNs).
p. Briefly explain mortgage securitization and how it contributed to the global
economic.