Abejuela, Sarah Grace S., Ang, Ericka Joyce E., Cala, Alyssa Jean H., Camacho, Kristoffer Ode C., DelaCerna, Bernabe B., Marata, Jackylyn J., Salazar, Roanne S. 4 0

A Five year financial plan for Globe Telecom Inc. and Subsidiaries. 6 6 - - - 176p. 28 cm. - - - - - . - . - 0 . - . - 0 .

Financial Plan: (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2014.





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EXECUTIVE SUMMARY: Globe Telecom Inc. and Subsidiaries commonly known as Globe, is a major provider of telecommunications services in the Philippines. Globe Telecom Inc. set out to build a brand new network that would greatly improve the quality of mobile experience in the Philippines. However, as regards to its operation, the company is highly leveraged caused by the large amount of short-term liabilities caused by the expansion in network coverage and infrastructure. In order to help the company in solving its current problems, the proponents have come up with the following requirements alternative courses of actions that will also help attain the company's goals and objective. First, the company will convert its debts into shares of stock, or equity. Most commonly, a financial institution (such as an insurer or bank) holds the new shares after the original debt is transformed to equity shares. Equity represents money invested into a corporation or enterprise by owners called shareholders. The equity owner usually receives voting rights, and may vote in the yearly meeting of shareholders concerning the corporation or enterprise's management or next steps. If the entity pays dividends, the shareholder receives cash flow as he owns equity. Second, the company will implement cost cutting to reduce their general, selling and administrative expenses which are primarily contributed in promotions and advertising. Third, the company will acquire finance lease from First Multi-tech industrial and Development Corporation that provides innovative cell sites for Globe Telecom. Generally, in debt for equity swap, the company will undergo some financial restructuring to ward off the threat of insolvency. The cost cutting will decrease company's.general, selling, and administrative expense and at the same time company's net income will increase same thing goes with finance lease for expansion in underdeveloped areas. In other words, this alternative course of action when executed will improve the company's highly leveraged condition.













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