Tania, Tania and Faradynawati, Ida Ayu Agung (2014) The Impact of Yearly Increasing Minimum Wages on The Value of A Firm Using Free Cash Flow to the Firm Method and on Shareholder Value Added: A Case Study of PT. Gondowangi Tradisional Kosmetika. Bachelor thesis, Swiss German University.

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Abstract

In today’s economic world, most businesses always face the condition of minimum wage increases every year. Some firms respond to these higher labor costs by reducing employment, relocating the business, or raising prices that lead to the firm’s value and performance. The objectives of this thesis are to define and examine the approaches using Free Cash Flow to the Firm (FCFF) method for firm valuation and to identify the value and wealth creation for shareholders by Shareholder Value Added (SVA) concept in PT. Gondowangi Tradisional Kosmetika. This research is a descriptive study and a causal study using quantitative approach and the data are obtained from secondary sources. The financial statements of PT. Gondowangi Tradisional Kosmetika are analyzed using financial modeling in Microsoft Excel. Thus, the value of the firm is obtained using the FCFF method and the shareholders’ value added is obtained using the SVA method. The results of the valuation indicate that there was a sharp different in the firm’s value and shareholders’ value added when using different assumptions in scenario analysis (i.e. optimist, normal, and pessimist). From those results can be seen the potential in the future for the firm in which the minimum wages increases annually and ensure that PT. Gondowangi Tradisonal Kosmetika will perform well as expected in the future.

Item Type:	Thesis (Bachelor)
Uncontrolled Keywords:	Minimum Wages, Free Cash Flow to the Firm (FCFF), Shareholder Value Added (SVA), Valuation
Subjects:	H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HF Commerce > HF5549 Personnel management
Depositing User:	Faisal Ifzaldi
Date Deposited:	02 Aug 2021 14:45
Last Modified:	02 Aug 2021 14:45
URI:	http://repository.sgu.ac.id/id/eprint/2128

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