Problem
Financial data in a company consists of Sales of IDR 5 billion, COGS of IDR 2 billion, Operating & Managerial expenses of IDR 1 billion, Interest expenses of IDR 80 million, Operating Assets outside Marketable Securities of IDR 12 billion (40% of which are 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 IDR 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 the 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%.
1. Give your recommendations to improve the performance of this company based on financial statement analysis with 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 its Free Cash Flow, and then determine how much of that value is broken down into Intrinsic Stock Price and Intrinsic Market Value Added.