Anda di halaman 1dari 3

BOD The board of directors' key purpose is to ensure the company's prosperity by

collectively directing the company's affairs, whilst meeting the appropriate interests of its
shareholders and stakeholders.
CEO The CEO's leadership role also entails being ultimately responsible for all day-to-day
management decisions and for implementing the Company's long and short term plans.
The CEO acts as a direct liaison between the Board and management of the Company and
communicates to the Board on behalf of management
INTERNAL AUDITORThe role of internal audit is to provide independent assurance that an
organisation's risk management, governance and internal control processes are operating
effectively. We have a professional duty to provide an unbiased and objective view
SECRETARYPerform routine clerical and administrative functions such as
drafting correspondence, scheduling appointments, organizing and maintaining paper and
electronic files, or providing information to callers. Following are examples of the tasks required
for a secretarial position.
Government Relation Groups play a very important role in developing political and social
systems.
HR GROUP The human resources department handles many necessary functions of your
business. It is instrumental in providing labor law compliance, record keeping, hiring and
training, compensation, relational assistance and help with handling specific performance issues
CONSUMER BANKING GROUP is responsible for servicing individuals and small
businesses
OPERATIONS DEPARTMENT is responsible for running your business successfully. ...
While the operations department is responsible for the bottom line, it also oversees the
other departments in your organization, as well as the development of your employees and
customers. IT Department the IT Department is responsible for providing the infrastructure
for automation. It implements the governance for the use of network and operating systems, and
it assists the operational units by providing them the functionality they need
CHIEF FINANCIAL OFFICER (CFO) is the officer of a company that has primary
responsibility for managing the company's finances, including financial planning, management
of financial risks, record-keeping, and financial reporting. In some sectors, the CFO is also
responsible for analysis of data
CHIEF OPERATING OFFICER is responsible for the daily operation of the company, and
routinely reports to the highest-ranking executive, usually the chief executive officer (CEO).
The COO is usually the second in command at the firm, especially if the highest-ranking
executive is the Chairman and CEO.
CLIENT SERVICES manager is the ad agency executive who guides the campaign-building
process. From client communications and work flow to budgets and billing, client
services managers have many responsibilities
MONITORING AND REPORTING to track implementation and outputs systematically, and
measure the effectiveness of programmes. It helps determine exactly when a programme is on
track and when changes may be needed.
A) The firm's stock is over priced

B) The firm's stock is fairly priced.

C) The firm's stock is under priced.

#2 Cost of Preferred Stock

Mali Gaya Corp. is contemplating issuance of a 10% preferred stock that is expected
to sell for its P87-per share par value. The cost of issuing and selling the stockis
expected to be P$5 per share. Find the cost of the stock.

#3 - a. Value of stock
where:
D1 = next year's expected annual dividend per share
k = the investor's discount rate or required rate of return, which can be estimated using
the Capital Asset Pricing Model or the Dividend Growth Model

g = the expected dividend growth rate (note that this is assumed to be constant)

Let's assume Mandi Rigma Company intends to pay a P1 dividend per share
next year and you expect this to increase by 5% per year thereafter. Let's further
assume your required rate of return on Mandi Rigma Company stock is 10%. Currently,
Mandi Rigma Company stock is trading at P10 per share. Calculate the intrinsic
value of one share of Mandi Rigma Company stock (show your solutions) and choose
your answer from the following choices:

a) Stock is worth P10 per share and is trading at P10; the Gordon Growth
Model suggest that the stock is neither overvalued nor undervalued.
b) Stock is worth $20 per share but is trading at P10; the Gordon Growth
Model suggests the stock is undervalued.

3-b . During the next few years Mandi Rigma Company's dividends increased
rapidly and then grew at a stable rate. Next year's dividend is still expected to be P1
per share, but dividends will increase annually by 7%, then 10%, then 12%, and then
steadily increase by 5% after that. Analyzing each year of unusual dividend growth
separately, estimate the current fair value of Mandi Rigma Company stock.

Data:
D1 =P1.00
k = 10%
g1 (dividend growth rate, year 1) = 7%
g2 (dividend growth rate, year 2) = 10%
g3 (dividend growth rate, year 3) = 12%
gn (dividend growth rate thereafter) = 5%

Required:

a) Compute the actual dividends for 5 year


b) Calculate the present value of each dividend
c) Find the current intrinsic value of Company Mandirigma stock

3-c. Papa Mama Corporations has a target capital structure of 40% debt and 60%
equity. the company’s outstanding bonds has a 9% yield to maturity and the
company’s tax rate is 40 percent. The company’s CFO has estimated the company’s
WACC as 9.96 percent. Compute the company’s cost of common equity.

3-d. Winney industries can issue perpetual preferred stock at a price of P47.50 a
share. The issue is expected to pay a constant dividend of P3.80. What is the
company’s cost of preferred stock, kp?

3-e. Wildwest Company estimates that its WACC is 10.5 percent. The company is
considering the following investment projects:

PROJECT SIZE RATE OF RETURN


1 P1 million 12.0%
2 2million 11.5
3 2million 11.2
4 2million 11.0
5 1million 10.7
6 1million 10.3

Assume that each of these projects is just as risky as the firms’s existing assets, and
the firm may accept all the projects or only some of them? Which set of projects
should be accepted?