●Cash flows to equity Shortcomings of the equity cash flow mode 3.问题与应用（能力要求） What's the appropriate situation for using cash-flow-to-equity valuation model Section 6 OTHER APPROACHES TO DISCOUNTED CASH FLOW 1.主要内容 Nominal rather than real measures o Pretax or after tax cash flows 2.基本概念和知识点 Nominal cost of capital ●Expected inflation ●Pretax hurdle rate Section zalternatives to dISCOUNTED CASH FLOW 1.主要内容 Introduction to Multiples Introduction to Real Options 2.基本概念和知识点 ●Multiples Replicating portfolio Options-based models (三)思考与实践 1.How to use each model to value the company?Are the valuation results identical?Why? (四)教学方法与手段 Lecture,Multimedia Teaching,and Class Discussion Chapter9 Reorganizing the Financial Statements (一)目的与要求 To prepare the financial statements for analyzing economic performance,you need to reorganize the items on the balance sheet,income statement,and statement of cash flows into three categories:operating items,nonoperating items,and sources of financing.This often requires searching through the notes to separate accounts that aggregate operating and 11
11 ⚫ Cash flows to equity ⚫ Shortcomings of the equity cash flow model 3. 问题与应用（能力要求） ⚫ What’s the appropriate situation for using cash-flow-to-equity valuation model? Section 6 OTHER APPROACHES TO DISCOUNTED CASH FLOW 1. 主要内容 ⚫ Nominal rather than real measures ⚫ Pretax or after tax cash flows 2. 基本概念和知识点 ⚫ Nominal cost of capital ⚫ Expected inflation ⚫ Pretax hurdle rate Section 7 ALTERNATIVES TO DISCOUNTED CASH FLOW 1. 主要内容 ⚫ Introduction to Multiples ⚫ Introduction to Real Options 2. 基本概念和知识点 ⚫ Multiples ⚫ Replicating portfolio ⚫ Options-based models （三）思考与实践 1. How to use each model to value the company? Are the valuation results identical? Why? （四）教学方法与手段 Lecture, Multimedia Teaching, and Class Discussion. Chapter 9 Reorganizing the Financial Statements （一）目的与要求 To prepare the financial statements for analyzing economic performance, you need to reorganize the items on the balance sheet, income statement, and statement of cash flows into three categories: operating items, nonoperating items, and sources of financing. This often requires searching through the notes to separate accounts that aggregate operating and
nonoperating items (二)教学内容 Section 1 REORGANIZING THEACCOUNTING STATEMENTS:KEY CONCEPTS 1.主要内容 Invested Capital:Key Concepts Net Operating Profit LessAdjusted Taxes:Key Concepts Free Cash Flow:Key Concepts 2.基本概念和知识点 Operating Assets-Operating Liabilities =Invested Capital =Debt+Equity Invested Capital Nonoperating Assets =Total Funds Invested =Debt and Its Equivalents+Equity and Its Equivalents An Example of Invested Capital ·An Example of NOPLAT FCF=NOPLAT+Noncash Operating Expenses-Investments in Invested Capital An Example of Free Cash Flow 3.问题与应用（能力要求） How to calculate IC.NOPLAT and FCF by reorganizing the financial statements? Section 2 REORGANIZING THE ACCOUNTING STATEMENTS:IN PRACTICE 1.主要内容 Invested Capital:In Practice Computing Total Funds Invested Reconciling Total Funds Invested ●Calculating noplat Reconciliation to Net Income Free Cash Flow:In Practice Cash Flow Available to Investors Reconciling Cash Flow Available to Investors 2.基本概念和知识点 Operating working capital Net property,plant,equipment,and other capitalized investments ●Oth Goodwill and acquired intangibles Adjustments to Goodwill and Acquired Intangibles Excess cash and marketable securities Excess cash,that is,cash above the amount required for day-to-day operations
12 nonoperating items. （二）教学内容 Section 1 REORGANIZING THE ACCOUNTING STATEMENTS: KEY CONCEPTS 1. 主要内容 ⚫ Invested Capital: Key Concepts ⚫ Net Operating Profit Less Adjusted Taxes: Key Concepts ⚫ Free Cash Flow: Key Concepts 2. 基本概念和知识点 ⚫ Operating Assets − Operating Liabilities = Invested Capital = Debt + Equity ⚫ Invested Capital + Nonoperating Assets = Total Funds Invested = Debt and Its Equivalents + Equity and Its Equivalents ⚫ An Example of Invested Capital ⚫ An Example of NOPLAT ⚫ FCF = NOPLAT + Noncash Operating Expenses −Investments in Invested Capital ⚫ An Example of Free Cash Flow 3. 问题与应用（能力要求） ⚫ How to calculate IC, NOPLAT and FCF by reorganizing the financial statements? Section 2 REORGANIZING THE ACCOUNTING STATEMENTS: IN PRACTICE 1. 主要内容 ⚫ Invested Capital: In Practice ⚫ Computing Total Funds Invested ⚫ Reconciling Total Funds Invested ⚫ Calculating NOPLAT ⚫ Reconciliation to Net Income ⚫ Free Cash Flow: In Practice ⚫ Cash Flow Available to Investors ⚫ Reconciling Cash Flow Available to Investors 2. 基本概念和知识点 ⚫ Operating working capital ⚫ Net property, plant, equipment, and other capitalized investments ⚫ Other operating assets, net liabilities ⚫ Goodwill and acquired intangibles ⚫ Adjustments to Goodwill and Acquired Intangibles ⚫ Excess cash and marketable securities ⚫ Excess cash, that is, cash above the amount required for day-to-day operations