Financial data in a company consists of Sales of Rp. 5 billion, COGS of Rp. 2 billion, Operating & Managerial expenses of Rp. 1 billion, and Interest expenses of Rp. 80 million, Operating Assets outside marketable Securities of Rp. 12 billion (40% of which is operating current assets), Marketable Securities of Rp. 3 billion, and operating liabilities of Rp. 6 billion (30% of which are operating current liabilities). The book value of the equity is Rp 4 billion.
The company operates in a country with a corporate income tax rate of 12%. From information on Bloomberg, it is known that the market return of the capital market in that country is 7%, while this company has a beta of 1.5 and a credit rating of BBB. The country has bonds with a yield of 5% which is used as a risk-free rate. Meanwhile, it is known that the yield on bonds of a company with assets of Rp 15 billion is 6% and the yield on bonds of a company with a BBB rating is 6.5%.

Questions

1. Give your recommendations to improve the performance of this company based on financial statement analysis using a structured method (DuPont)
2. Give an assessment of the implementation of the principles of good corporate governance in this company.
3. You are asked to determine the Total Value of the company by calculating the Free Cash Flow and then determining how much of that value is broken down into Intrinsic Stock Price and Intrinsic Market Value Added!

Answer rating: 100% (QA)

1 Recommendations to improve the performance of the company a Increase sales The company can focus o... View the full answer