Subject : Manajemen Keuangan 1

Dosen : Dr. Francis Hutabarat, MBA

Name : Ribka Septiani Natty

Assignment – Chapter 1

A. Fill in the Blanks

1. Liquity Ratio shows the ability of a firm to pay its short term assets.
2. Leverage Ratio shows the level of firm debt.
3. Profitability Ratio hows the ability of a firm to gain profit.
4. Finance manager need to know how to get that money
B. Matching
a. Liquidity ratio d. Net Income/Outstanding Share g. PER > 15
b. Profitability e. PBV < 3 h. Sales/A/R
c. Sales/Asset f. Market Ratio
1. Current ratio = A. Liquidity ratio
2. Return on asset = B. Profitability
3. Total Asset turnover = C. Sales/Asset
4. Overvalued = G. PER > 15
5. Undervalued = E. PBV < 3
6. Price Earning Ratio = F. Market Ratio
7. Earning Per Share = D. Net Income/Outstanding Share
8. Receivable turnover = H. Sales/A/R

C. Multiple Choice
1. Finance manager need to analyse how much money needed for operation in a year
a. Analyze firm performance b. Investment c. Secure funding for firm d. All
2. If a company has 100 Total Asset, 25 total equity. Give how much is debt to equity ratio.
a. 0.3 b. 0.25 c. 3 d. 5
3. If a company has 100 Total Asset, 25 total equity. Give how much is debt to asset ratio.
a. 0.3 b. 0.25 c. 3 d. 5 (0.75)
4. If a company has 100 Total Asset, 25 total equity. Give interpretation of debt to asset.
a. Low risk b. medium risk c. high risk d. all of the above
D. Essay
1. In securing funding for the firm, Finance manager need to know how to get that money.
Give 4 (four) source of funding for the firm.
Answer :
1. Retained earnings
2. Cash in the banks
3. Borrow from the bank
4. Issue debt
5. Issue stock

2. Who is Adam Smith? What is the title of his book?

Answer : Adam Smith is the father of modern economy that wrote book with the title
‘The Wealth of Nation.’
3. Give your explanation of ‘invisible hand’?
Answer : The invisible hand is the concept that buyers and sellers in a free market
unknowingly act in ways that benefit the economy as a whole, as if guided by an invisible
hand.

4. What do you think, is it important for companies to be socially responsible? Why?

Answer :
Yes, it is crucial for companies to be socially responsible. Social responsibility not
only benefits society and the environment but also enhances a company’s
reputation and long-term sustainability. By engaging in ethical practices, supporting
communities, and minimizing their environmental impact, businesses can build trust
with customers, attract and retain talent, and ultimately foster a more positive and
stable business environment. Additionally, as public awareness of social and
environmental issues grows, companies that prioritize social responsibility are better
positioned to adapt to changing consumer preferences and regulatory requirements,
reducing risks and ensuring their continued success.

5. Explain the conflict that the company faces between,

a. Enhancing shareholder value by laying off some workers.
b. Change in policy may improve environment but reduce shareholders value.

Answer :

The company faces a significant conflict between its obligation to enhance

shareholder value, which may involve laying off workers to cut costs, and the
potential for a change in policy that could improve environmental sustainability
but potentially reduce shareholder value. Balancing the financial interests of
shareholders with ethical and environmental considerations poses a complex
dilemma, requiring careful decision-making to strike the right balance between
profitability and responsible corporate citizenship.

6. Explain what Capital Structure deals with.

Answer : Capital structure or "capital structure" relates to the combination of equity
shares, preferred share capital, debt securities, long-term loans, retained earnings, and
other long-term sources of funds collected by the company. This is what makes the
company conduct strict supervision regarding the future of its company's financial
condition

7. Explain what Working Capital deals with.

Answer : Working capital consists of all current assets or assets that can be converted
into cash in a short time (usually less than one year) such as cash, receivables,
inventories, and short-term investments, as well as current liabilities or debts that
mature in a short time (usually less than one year) such as accounts payable and accrued
expenses.