Professional Documents
Culture Documents
Manajemen Keuangan: Program Magister Manajemen Universitas Gunadarma
Manajemen Keuangan: Program Magister Manajemen Universitas Gunadarma
Refferences:
Principles of Managerial Finance, Lawrence J. Gitman, Harper Collins Publishers
Chapter 1
The Role of Finance and The
Financial Manager
Financial Services
Areas&
The area of finance concerned with the design and
Opportunities?
delivery of advice and financial product to individual,
business, and governments
Managerial Finance
concerned with the duties of the financial manager
in the business firm.
Budgeting
Financial forecasting Actively manage the financial
Cash management
affairs of many tipes of
Task? business- financial and non-
Credit administration
financial, private and public,
Investment Analysis large and small, profit-seeking
Funds procurement and not-for-profit
Budi Hermana Magister Manajemen-Universitas Gunadarma-3
Managerial Finance
•Limited fund-raising power financially sound partners •More expensive to organize than other
tends to inhibit growth •When a aparter dies, business forms
•Propietor must be jack-of-all- partership is dissolved •Subject to greater government regualation
trades •Difficul to liquidate or •Employees often lack personnel interest in
•Difficult to give employees transfer partership firm
long run career opportunity •Difficult to achieve large- •Lack secrecy since stockholders must
•Lacks continuity when scale operations receive financial reports
propitor dies
Budi Hermana Magister Manajemen-Universitas Gunadarma-5
Managerial Finance
Organizational View
?
economic policy
Must be able to use economic theories as guidelines for efficient busineness operation
Marginal Analysis
?
accountants are intimately involved in various finance activities
Two Basic Differences
Primary Activities
Making Investment
Making Financing
Current Current
Making Investment Decisions Assets Liabilities
Decision
Decision
Determine both the mix and the type of assets found
on the firm’s balance sheet
The left-hand side of the balance sheet Fixed Long-Term
Assets Funds
Making Financing Decision
Deals with The right-hand side of the balance
sheet and involves two major area:
1. Most appropriate mix of short-term and long-
term financing must be established
2. Which individual short-term or long-term
sources of financing are the best at given
point in time
Budi Hermana Magister Manajemen-Universitas Gunadarma-9
Managerial Finance
The Managerial Finance Function
Goal of The Financial Manager
Maximize Profit?
Risk
Increase
Financial Financial Decision Return?
Manager Alternative or action Risk?
Share Yes Acept
Price ?
Yes
Reject
In theory In practise
Most financial managers would agree However, managers also concern with
with the goal of owner wealth their personnel wealth, job security,
maximization lifestyle, and privilege
Agency problem
Transparency
Issues Update
Accountability
Good Corporate Governance
www.fcgi.or.id
http://www.kpk.go.id/modules/edito/content.php?id=27
http://www.bi.go.id/NR/rdonlyres/2246113B-DC63-4731-8558-3693A6254962/3449/pbi8406.pdf
http://www.cfainstitute.org
Chapter 2
The Operating Environment of
The Firm
Tax Calculation
Example
PT X has before-tax earnings of $250.000 Total Tax due = $22.250 + [0.39 x ($250.000-100.000)]
= $22.250 + (0.39 x $150.000)
= $22.250 + $58.500 = $80.750
Indonesia ?
Example
Charnes Industries received Interest Dividend
$100.000 interest on bonds Income Income
it held and $100.000 in
dividends on common stock (1) Before-tax amount $100.000 $100.000
it owned in other Less: Applicable Exclusion 0 (0,70x$100.000) = 70.000
corporation. The firm is $100.000 $ 30.000
Taxable amount
subject to a 40% marginal- 40.000 12.000
(2) Tax (40%)
tax rate and is eligible for
70% exclusion on its After-tax amount (1)-(2) $ 60.000 $ 88.000
intercorporate dividend
receipts Indonesia ?
Tax-Deductible Expenses
Example
Company X and Y each expect in the Interest Dividend
coming year to have earnings before Income Income
interest and taxes of $200.000. Company X
during the year will have to pay $30.000 in Earning before interest&tax $200.000 $200.000
interest; Company Y has no debt and Less: Interest expenses 30.000 0
therefore will have no interest expenses. Earnings before tax $170.000 $200.000
Calculate the earnings after taxes for these Less: Taxes (40%) 68.000 80.000
two firm, which pay 40% tax on ordinary $ 102.000 $120.000
Earnings after taxes
income
Difference in earning after taxes $18.000
Example
The Ross Company has operating Since the asset was sold for more than its initial
earnings of $500.000 and hast just purchased, there is capital gain of $4000
sold for $40.000 a capital asset
($40.000 sale price - $36.000 initial purchase price)
initially purchased two years ago for
$36.000.
The corporation’s taxable income will total
$504.000
($500.000 ordinary income plus $4.000 capital gain)
Financial Institution
Financial Market
Private placement
Capital Market
Primary market
Funds Funds
Deposits/Shares Financial Loans
Institutions
Securities
Funds
Funds Funds
Financial
Markets
Securities Securities
Preferred stock
The bid price is the highest price offered Automated The ask price is the lowest price at
by dealer to purchase a given security matched which the dealer is willing to sell the
security
D General preferences of
So investors for shorter-term
securities
S1
The actual rate of interest
Real Rate of Interest
Theory suggesting that for any given issuer, long- 1 years 6,51 2,00 4,51
term interest rates tend to be higher than sort- 8,38 2,00 6,38
5 years
term rates due to the lower liquidity and higher
responsiveness to general interest rate 30 years 9,05 2,00 7,05
movements of longer term securities; causes the
yield curve to be upward-sloping
Risk-Return Trade-off
The expectation that for accepting greater risk,
investors must be compensated with greater
returns
Preferred Stocks
Annual Return (cost to issuer)
Medium-Grade Bonds
Investment-Grade Bonds
Investment-Grade Notes
US Treasury Bills
Risk
Chapter 3
Financial Statement
December 31
December 31
Liabilities and stockholders’ equity 2000 2001
Current liabilities
Accounts payable $ 700 $ 500
Notes payable 600 700
Accruals 100 200
Total current liabilities $ 1400 $ 1400
Long-term debt $ 600 $ 400
Total liabilities $ 2000 $ 1800
Stockholders’ equity
Preferred stock $ 100 $ 100
Common stock- $1,20 par, 100000
shares outstanding in 2000&2001 120 120
Paid in capital in excess of par on
common stock 380 380
Retained earnings 600 500
Total stockholders’ equity $ 1200 $ 1100
Total liabilities and stockholders’ equity $ 3200 $ 2900
ABC Corporation Statement of Retained Earnings ($000) for the end year
Ended December, 2001