MBAへ行こう～Masaru3のMBA挑戦日記～
http://masaru3gotomba.blog101.fc2.com/
わたし Masaru3は早稲田大学のビジネススクールに入学が決まりました。学生生活から学んだことを忘れないように更新をしていきます。MBAのエッセンスが伝わるように心がけていきたいと思います。ja
http://masaru3gotomba.blog101.fc2.com/blog-entry-159.html
Entrepreneurial Finance 久々の更新になります。アントレプレナル ファイナンスのテスト前に、作成したテストの答えと思われるものを添付します。 英語間違ってても、流してください。これをベースに日本語化したものを、サイドアップ予定です。Start up business10)What are the main two problems associated with a "Mom and Pop" type of firm?One is difficult of finance. It is difficult for Mom & Pop firm to borrow money and to fund raise
アントレプレナル ファイナンスのテスト前に、作成したテストの答えと思われるもの を添付します。 英語間違ってても、流してください。
これをベースに日本語化したものを、サイドアップ予定です。
Start up business
10)What are the main two problems associated with a "Mom and Pop" type of firm?
One is difficult of finance. It is difficult for Mom & Pop firm to borrow money and to fund raise because income is not compensated. Banker said when the owners go home, income goes home. Another is difficult to sell the business. The resource of income depends on owners labor power. This is not attractive to buy business.
11) If someone asks "What percentage of the company (for a non-high-tech company) are you willing to give" for a given investment, how would you answer this question?
PR = (the amount of invest X desired return) / (5th year earning X PER multiple) PER multiple is considered by growth rate and profitability
12) How can you determine how much cash the new company will need to start and then get to a cash flow break even point?
Total amount need = Account of money need + Contingency. Account of money need is calculated by maximum negative most likely cash balance scenario. Contingency is maxim negative pessimistic cash balance - maximum negative most likely cash balance
13) What is "wrong" with a "single sale" type of company?
First sales are the most expensive cost of two aspect, money and human effort. Single sale is less efficiency than repeat sales.
14) What is Stancill's "Cash Flow" model for how much debt a firm can have? According to Stancill, what is the most important thing that a manager should think about when he or she is deciding on incurring (taking on) financial or operating leverage?
Acceptable debt = NOCF”/ Interest + sinking fund. Manager is think how much is sinking fund rate on financial leverage and debt is less than acceptable debt
the most important thing that a manager should think operation leverage is that the density of profit is higher than break even.
Profit 1)For manufacturing and distribution companies, what is the most popular means of managing their Income Statement? What do other companies, like high tech or service companies do to manage their Income Statement? Explain each process.
For manufacturing company, the most important thing is inventory management because this affect to the profit and payable tax. If the amount of inventory is lower, the cost of good sales is higher. That means lower profit and lower tax. On the other hand, inventory is higher, lower CGS, higher profit, higher tax.
For service company, the most important thing is revenue recognition which is when the sales and profit are booked. Service company can control the profit of this fiscal year.
2)Explain what the duPont Formula for ROI means to management. Be sure to define the formula.
Generally, there are 3 type of ROI, ROS, ROA, ROE. First of all, ROS = net income / sales. This means profit efficiency. ROA= net income / total asset = net income / sales(= ROS) x sales / total asset. Sales / total asset means asset efficiency. ROI= net income/ equity = net income / sales x sales / total asset x total asset / equity Last part means leverage.
3)When should a firm use the "Installment method" of reporting sales. Cite two examples.
A firm use the installment method of reporting sales following 2 situation. First, franchise case. Franchisee get the money once for one year. But it provides services each month. For example franchisee get $120,000 for one year. Then this company divide the sales by 12. First month sales is $10,000. Another is land sales. When the land is sold by $100,000, we get $10,000 as down payment. We recognize the sales of this year is $10,000.
Financials
4)What happens to the firm’s financial statement if a company uses the higher of market value or cost in valuing inventory?
Inventory cost is high ? CGS high ? Gross profit low ? net income low ? tax is low
5)What are the three types of financial statements? (For example, audited.) How are they alike or different? (Hint: Use the three by three matrix.)
Verify A/R, Inv, A/P Accounting system GAAP Cost Compile No No No Cheep Review No ?? Yes middle Audit Yes Yes Yes Expencive
6)Write the entire Cash flow Statement (through Item 7, Change in Cash) we use in class. Then state the way you forecast each item down through NOCF, using the Ratio and Regression approach. ITEM RATIO REGRESSION
7 ) When is (in what scenario) Net Income Plus Depreciation like NOCF"? Why?
Steady Net income + Depreciation = traditional Operating Cash flow NOCF” = NOCF- nec Discretionary Outflow
If NIPD = NOCF , NIPD = NOCF” when nec Discretionary outflow is about 0 In Growth scenario, nec Dic OF is very big because R&D and CE is so much to keep up with growth speed. In steady scenario, nec Dic OF is not so small very much because dividends and bonus needed But, in recession scenario, nec Dic OF is very small because company make profit to reduce the cost. So when the company is in recession, NIPD and NOCF” is the same
Capital budget
8) Why may cash be short in a firm that is growing rapidly?
NOCF” = NOCF- nec Discretionary Outflow In Growth scenario, nec Dic OF is very big because R&D and CE is so much to keep up with growth speed. When nec Discretionary outflow is as big as NOCF, cash is short.
9)In a recession, is it more important to "manage" your Income Statement or your Balance Sheet? Explain your reasoning.
Balance sheet. Because the company prepare cash to survive. For the sake of that, the company manage to reduce Inventory, Account Receivable, and to increase Account Payable.
16)How should one present a capital budgeting proposal? (What type of paper work is required? In what time format?) How do you get the IRR for each version of a proposal? How do you get the ERR for the proposal?
A= the IRR for lowest version (Pessimistic) B= the IRR for highest version （Optimistic） M= the IRR for most likely version ERR= (A+4M+B)/6
17)How do you check to see if a set of proposals is "going to kill the company's cash balance"? Give the formula?
18)How do you measure the "risk of getting the rate of return for a set of proposals"? Give the formula.