1






TBA 612 – Financial Management (English Program)






Submitted to Grad. Office via email by: Mar 8, 2021




Student Name: _______________________________

Student ID: _______________________________
2



1.1 Financial Cost
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

1.2 Liquidity
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________




1. Please explain why prudent financial management will maximize Shareholders’
wealth, in the following aspects
2. A. What is Working Capital?
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
__________________________________________________________________________
3



____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________

3.


22.9%41.3%ROE
14.1%13.8%ROA
11.7%13.2%Net Profit Margin
24.9%29.0%Gross Profit Margin
1.5 1.1Debt Service Ratio
8.7 4.7Time Interest Earn
38.5%66.7%Debt Ratio
0.9 1.1Current Ratio
2017 (A)2016(A)
100.0% 130.0100.0% 120.0 Total Liabilities & Equity
61.5% 80.033.3% 40.0Total Equity
38.5% 50.066.7% 80.0 Total Liabilities
26.7 63.6Total Long Term Loan
23.3 16.4Total Current Liabilities
100.0% 130.0100.0% 120.0Total Assets
83.0% 107.985.0% 102.0Total Non-Current Assets
17.0% 22.115.0% 18.0Total Current Assets
Statement of Financial Position
19.4% 30.421.2% 26.5EBITDA
11.7% 18.413.2% 16.5Net Profit
2.9% 4.63.3% 4.1Income Tax
14.7% 22.916.5% 20.7Earning before Tax
2.2% 3.54.5% 5.6Interest
16.9% 26.421.0% 26.3EBIT (Net Operating Profit)
8.0% 12.58.0% 10.0 Total Selling & Admin Expenses
2.8% 4.43.0% 3.8Administration Expenses
5.2% 8.15.0% 6.3Selling Expenses
24.9% 38.929.0% 36.3Gross Profit
75.1% 117.371.0% 88.8 Total Cost of Goods Sold
14.1% 22.016.0% 20.0 - Overhead Cost
11.0% 17.210.0% 12.5 - Direct Labour
50.0% 78.145.0% 56.3 - Raw Material
Cost of Goods Sold
100.0% 156.3100.0% 125.0Sales
(%)2017 (A)(%)2016(A)Unit: Million Thai Baht
____________________________________________________________________________
B. What’s happen to the company which has poor Working Capital management?
If you were a CFO of this ABC Co.,Ltd, and you received the financial report for 2017 comparing to
2016 with Ratio analysis as shown below, what is your recommendation to improve the
company’s performance.
4

3.1 Current Ratio in 2017 dropped to 0.9 times, comparing to 1.1 times in 2016. Is this good or bad in
term of liquidity of the company?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
3.2 Please comment on Financing Structure of the Company (Debt Ratio)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
3.3 Please find the reason why Gross Profit Margin was dropped to 24.9% in 2017, comparing to 29%
in 2016. What is your recommendation to improve the Gross Profit Margin?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
5







assumptions:

Assumptions for CAPM




4.1 Dividend Growth Model

a. Please find Cost of Equity by using the CAPM model

r = ____________%

Share Price Valuation (Dividend Growth Model)
The Company paid dividend at 2 Baht/Share in 2018.
b. Dividend per share for 2019 (D1) = _________Baht/Share
- Average return of the stock market is 10% per annum ….(Rm)
- 30 years Government Bond yield = 3.5% …..(Rf)
- b (beta) of XYZ stock = 1.2 ……(b or beta)
3.4 Please explain why in 2017 ROA increase while ROE decrease?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
r = Rf + (Rm-Rf)*b
4. XYZ Public Company Limited expects that the company will have a constant growth (g) at
3% per annum. CEO would like to know the fundamental value of the company’s share.
As a CFO, please prepare the share valuation based on the following methodologies and
6

c. Market Value per Share (Po) = _________Baht/Share
Formula: Po = D1 / (r – g)


4.2 Market Comparable Method (P/E ratio)

- The company forecast to have an Earning per Share (EPS) (or Net Profit/Share)
for 2019 = 2.5 Baht/Share.
- P/E Ratio of the Industry = 15 times
- P/E Ratio of the comparable stocks are as follows:
o Stock A: P/E = 15 times
o Stock B: P/E = 17 times
o Stock C: P/E = 16 times
o Stock D: P/E = 17 times

d. Please find the market share price for XYZ stock by using the Market
Comparable method: (Price = EPS x P/E)
Market Value per Share = ______________Baht/Share

4.3 Recommendation

If the current market price for XYZ company is 30 Baht/share, what is your
recommendation?

________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________



7

5. Please explain (a) the steps for Capital Budgeting and (b) its major decision criteria
(IRR, NPV, and Pay Back Period)
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________

8


6. Bond


Face Value : 1,000 Baht
Maturity : 5 years
Coupon : 5%
YTM (or Required Rate of Return) : 7%

Bond Price = ___________ Baht

b. What kind of Risks associated with Bond? Please explain why?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
a. Please calculate the Bond Price if:
9

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
























































































































































































































































































































学霸联盟