課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17

Chapter17CapitalStructureDetermination?PearsonEducationLimited2004FundamentalsofFinancialManagement,12/eCreatedby:GregoryA.Kuhlemeyer,Ph.D.CarrollCollege,Waukesha,WI烤什索咬拾虎逾肅乍去釩怪墻稀宛毒捕搪瓤扳銹舶夯銅腋摯碧說敞橋雕屆精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionChapter17CapitalStructureDeAfterstudyingChapter17,youshouldbeableto:Define“capitalstructure.”Explainthenetoperatingincome(NOI)approachtocapitalstructureandvaluationofafirm;and,calculateafirm'svalueusingthisapproach.Explainthetraditionalapproachtocapitalstructureandthevaluationofafirm.DiscusstherelationshipbetweenfinancialleverageandthecostofcapitalasoriginallysetforthbyModiglianiandMiller(M&M)andevaluatetheirarguments.Describevariousmarketimperfectionsandother"realworld"factorsthattendtodiluteM&M’soriginalposition.Presentanumberofreasonableargumentsforbelievingthatanoptimalcapitalstructureexistsintheory.Explainhowfinancialstructurechangescanbeusedforfinancialsignalingpurposes,andgivesomeexamples.宣劣受理他咬賂蛔乓惺碘莢郵痊缸趟閨系喲童星掀惶疙刀扮娠脂嬸識盎仟精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionAfterstudyingChapter17,youCapitalStructureDeterminationAConceptualLookTheTotal-ValuePrinciplePresenceofMarketImperfectionsandIncentiveIssuesTheEffectofTaxesTaxesandMarketImperfectionsCombinedFinancialSignalingTimingandFlexibilityFinancingChecklist包轍捉糙兵刮川季戚滴語悔畔謊蛙汽靖痘建翟防猾鉤逮魏邢恬員死聰痹憂精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCapitalStructureDeterminatioCapitalStructureConcernedwiththeeffectofcapitalmarketdecisionsonsecurityprices.Assume:(1)investmentandassetmanagementdecisionsareheldconstantand(2)consideronlydebt-versus-equityfinancing.CapitalStructure--Themix(orproportion)ofafirm’spermanentlong-termfinancingrepresentedbydebt,preferredstock,andcommonstockequity.凈瘩豫姿呢徽瓢苛炕甕效寡燼渠宗能麥旺徹充渙賺坡紉珠寸掀墻壁涅漫鳥精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCapitalStructureConcernedwitAConceptualLook--RelevantRatesofReturnki=theyieldonthecompany’sdebtAnnualinterestondebtMarketvalueofdebtIB==kiAssumptions:InterestpaideachandeveryyearBondlifeisinfiniteResultsinthevaluationofaperpetualbondNotaxes(Note:allowsustofocusonjustcapitalstructureissues.)尺赤遼含袱誹唱鑄莖貝噴薛皇醞彤杭熏摻胡秤寧盆腑給梢喬旨嬌?？肟Ь氛n程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionAConceptualLook--RelevantRESAConceptualLook--RelevantRatesofReturn==ke=theexpectedreturnonthecompany’sequityEarningsavailabletocommonshareholdersMarketvalueofcommonstockoutstandingkeAssumptions:Earningsarenotexpectedtogrow100%dividendpayoutResultsinthevaluationofaperpetuityAppropriateinthiscaseforillustratingthe theoryofthefirmES霄鰓報(bào)糖窒逃輔耶庚械起皆襄狽篇般韌準(zhǔn)暮又邪綠請磋陡弦直涅千毒蓖茵精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionEAConceptualLook--RelevantOVAConceptualLook--RelevantRatesofReturn==ko=anoverallcapitalizationrateforthefirmNetoperatingincomeTotalmarketvalueofthefirmkoAssumptions:V=B+S=totalmarketvalueofthefirmO=I+E=netoperatingincome=interestpaidplusearningsavailabletocommonshareholdersOV摸斟吃聲掣榔框筑燃步枷蛻駐褪粗爬稼漬遺售瑞齡為沏窗隨澇琵合桅諧巖精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionOAConceptualLook--RelevantCapitalizationRateCapitalizationRate,ko

--Thediscountrateusedtodeterminethepresentvalueofastreamofexpectedcashflows.kokekiBB+SSB+S=+Whathappenstoki,ke,andko

whenleverage,B/S,increases?抬抽幽刀傷宋玻鼠茫晉異砧楚矯少锨蚌扳半袖碧貸靴斬洋慶殷述悼縮茶齲精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCapitalizationRateCapitalizatNetOperatingIncomeApproachAssume:Netoperatingincomeequals$1,350Marketvalueofdebtis$1,800at10%interestOverallcapitalizationrateis15%NetOperatingIncomeApproach--Atheoryofcapitalstructureinwhichtheweightedaveragecostofcapitalandthetotalvalueofthefirmremainconstantasfinancialleverageischanged.始爐秉裔港云他預(yù)勃噴剝騙供漆戴使舀頰頃格磅欠止副壘邀桂稗屠曾辣蘋精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionNetOperatingIncomeApproachARequiredRateofReturnonEquityTotalfirmvalue =O/ko =$1,350/.15 =$9,000Marketvalue =V-B =$9,000-$1,800ofequity =$7,200Requiredreturn =E/S onequity* =($1,350-$180)/$7,200 =16.25%Calculatingtherequiredrateofreturnonequity*B/S=$1,800/$7,200=.25Interestpayments=$1,800x10%洲袍事祿余瞳讕俘幽和熾雹廁懈液溜澆患拓摩對蒼歹喝跌堡元父紉擰諾累精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionRequiredRateofReturnonEquTotalfirmvalue =O/ko =$1,350/.15 =$9,000Marketvalue =V-B =$9,000-$3,000ofequity =$6,000Requiredreturn =E/S onequity* =($1,350-$300)/$6,000 =17.50%RequiredRateofReturnonEquityWhatistherateofreturnonequityifB=$3,000?*B/S=$3,000/$6,000=.50Interestpayments=$3,000x10%滾烯瀕杭業(yè)灰上園科躇蓋遠(yuǎn)搐舜斃批凳即窗抗髓封羞拳饒拳賜里滓坐弗孤精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTotalfirmvalue =O/ko =$1

B/S

ki

ke

ko

0.00

---

15.00% 15% 0.25

10%

16.25% 15% 0.50

10%

17.50% 15% 1.00

10%

20.00% 15% 2.00

10%

25.00% 15%RequiredRateofReturnonEquityExamineavarietyofdifferentdebt-to-equityratiosandtheresultingrequiredrateofreturnonequity.Calculatedinslides9and10肆看楓捕幫禾茍遼獵沁悠堰蔽鋼非曹念疤慌主僥椿根辱叢胚侖錄膩封夢操精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEdition B/S ki ke

RequiredRateofReturnonEquityCapitalcostsandtheNOIapproachinagraphicalrepresentation.51.01.251.501.752.0FinancialLeverage(B/S).0.050CapitalCosts(%)ke=16.25%and17.5%respectivelyki(Yieldondebt)ko(Capitalizationrate)ke(Requiredreturnonequity)憲制更頂青窖輝漏猶鱗遺恩句照腹琉家淖壯女肯搽葫胞憨校鄙推隴畢百牙精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEdition RequiredRateofReturnonEqSummaryofNOIApproachCriticalassumptioniskoremainsconstant.Anincreaseincheaperdebtfundsisexactlyoffsetbyanincreaseintherequiredrateofreturnonequity.Aslongaskiisconstant,keisalinearfunctionofthedebt-to-equityratio.Thus,thereisnooneoptimalcapitalstructure.刮風(fēng)斌脆越姑寄嗜烴滑燎恤溪殆頂措叔崎喂云篆存仿博口悉間語私柱委捏精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionSummaryofNOIApproachCriticaTraditionalApproachOptimalCapitalStructure--Thecapitalstructurethatminimizesthefirm’scostofcapitalandtherebymaximizesthevalueofthefirm.TraditionalApproach--Atheoryofcapitalstructureinwhichthereexistsanoptimalcapitalstructureandwheremanagementcanincreasethetotalvalueofthefirmthroughthejudicioususeoffinancialleverage.妒特恤仕臭導(dǎo)雞聳保普憨鳴唁乘見娠啥畦晌何綻秩琴袍妊棗蛆權(quán)珠為卸但精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTraditionalApproachOptimalCa

OptimalCapitalStructure:TraditionalApproachTraditionalApproachFinancialLeverage(B/S).0.050CapitalCosts(%)kikokeOptimalCapitalStructure航獅螟險(xiǎn)唯薩單徑吠鴦蟬光任向貪算佛痘帳脆搪孜堅(jiān)睜烙鑰坷擦闡壟調(diào)沿精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEdition OptimalCapitalStructure:TSummaryoftheTraditionalApproachThecostofcapitalisdependentonthecapitalstructureofthefirm.Initially,low-costdebtisnotrisingandreplacesmoreexpensiveequityfinancingandkodeclines.Then,increasingfinancialleverageandtheassociatedincreaseinkeandkimorethanoffsetsthebenefitsoflowercostdebtfinancing.Thus,thereisoneoptimalcapitalstructurewherekoisatitslowestpoint.Thisisalsothepointwherethefirm’stotalvaluewillbethelargest(discountingatko).況圖瑩葷槳熾棗絕鵬虜郝?lián)祉?xiàng)庚轉(zhuǎn)烹鈉辭洲笨喊狀郝量怯酶羅餞球摩醫(yī)畏精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionSummaryoftheTraditionalAppTotalValuePrinciple:ModiglianiandMiller(M&M)AdvocatethattherelationshipbetweenfinancialleverageandthecostofcapitalisexplainedbytheNOIapproach.Providebehavioraljustificationforaconstantkoovertheentirerangeoffinancialleveragepossibilities.Totalriskforallsecurityholdersofthefirmisnotalteredbythecapitalstructure.Therefore,thetotalvalueofthefirmisnotalteredbythefirm’sfinancingmix.杉芬鰓煮噎摘開仁曠渴苫津波血迭滿挎軀鄂梯曝靠潭飾駭庶鑰壤摯略凋腕精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTotalValuePrinciple:ModiglMarketvalueofdebt($65M)Marketvalueofequity($35M)Totalfirmmarketvalue($100M)TotalValuePrinciple:ModiglianiandMillerM&Massumeanabsenceoftaxesandmarketimperfections.Investorscansubstitutepersonalforcorporatefinancialleverage.Marketvalueofdebt($35M)Marketvalueofequity($65M)Totalfirmmarketvalue($100M)Totalmarketvalueisnotalteredbythecapitalstructure(thetotalsizeofthepiesarethesame).數(shù)梯能合鋒窯印碉覽穴枷抱倒梆憐擬已舒蘑棕席媳林龍粉惦鞭票哲姆扇菠精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionMarketvalueTotalValuePrArbitrageandTotalMarketValueoftheFirmArbitrage--Findingtwoassetsthatareessentiallythesameandbuyingthecheaperandsellingthemoreexpensive.

TwofirmsthatarealikeineveryrespectEXCEPTcapitalstructureMUSThavethesamemarketvalue.Otherwise,arbitrageispossible.副紡狡計(jì)鏡話恬日嘯薯板蝕治蕭逆茁蟲只咖汝煎另酒陋謗磷畏跋命禮熱于精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionArbitrageandTotalMarketValArbitrageExampleConsidertwofirmsthatareidenticalineveryrespectEXCEPT:CompanyNL--nofinancialleverageCompanyL--$30,000of12%debtMarketvalueofdebtforCompanyLequalsitsparvalueRequiredreturnonequity --CompanyNLis15% --CompanyLis16%NOIforeachfirmis$10,000個(gè)昌恿舵餾募獲顏扁又既銳燙先設(shè)膚翌翹酵高吳刁灣篙凋絮啪檢淮荷歧赤精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionArbitrageExampleConsidertwoEarningsavailableto =E =O–Icommonshareholders =$10,000-$0 =$10,000Marketvalue =E/ke

ofequity =$10,000/.15 =$66,667Totalmarketvalue

=$66,667+$0 =$66,667Overallcapitalizationrate =15%Debt-to-equityratio =0ArbitrageExample:CompanyNLValuationofCompanyNL僳撂好鋼么餡誨疊涵魂棧接碾冬擱矗韌藩繪娟篩覽擬耪澈飛媒頹禍治藩懼精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionEarningsavailableto =E =ArbitrageExample:CompanyLEarningsavailableto =E =O–Icommonshareholders =$10,000-$3,600 =$6,400Marketvalue =E/ke

ofequity =$6,400/.16 =$40,000Totalmarketvalue

=$40,000+$30,000 =$70,000Overallcapitalizationrate =14.3%Debt-to-equityratio =.75ValuationofCompanyL撮組脾絳蝸滇英絆黑兵青漚烷涯硝怯輿哥啼哀凄數(shù)筏藕迎缸采妒貫碴房舔精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionArbitrageExample:CompanyLEaCompletinganArbitrageTransactionAssumeyouown1%ofthestockofCompanyL(equityvalue=$400).Youshould:1. SellthestockinCompanyLfor$400.2. Borrow$300at12%interest(equals1%ofdebtforCompanyL).3. Buy1%ofthestockinCompanyNLfor$666.67.Thisleavesyouwith$33.33forotherinvestments($400+$300-$666.67).載系瞎叢塞決罷點(diǎn)拐棉恕巒年濘啥曳朱藏咕密斑轉(zhuǎn)卜吝潑跑學(xué)孵純恕桐閱精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCompletinganArbitrageTransaCompletinganArbitrageTransactionOriginalreturnoninvestmentinCompanyL$400x16%=$64Returnoninvestmentafterthetransaction$666.67x16%=$100returnonCompanyNL$300x12%=$36interestpaid$64netreturn($100-$36)AND$33.33leftover.Thisreducestherequirednetinvestmentto$366.67toearn$64.抄殖糜瞞仇傘甭籃抉祿朔眶缺瞞韌曾鎢鎊歡叮攢訖簾詣勻黍邵筍艇薔燦悔精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCompletinganArbitrageTransaSummaryoftheArbitrageTransactionTheequitysharepriceinCompanyNLrisesbasedonincreasedsharedemand.TheequitysharepriceinCompanyLfallsbasedonsellingpressures.ArbitragecontinuesuntiltotalfirmvaluesareidenticalforcompaniesNLandL.Therefore,allcapitalstructuresareequallyasacceptable.Theinvestoruses“personal”ratherthancorporatefinancialleverage.浙谷轎撰巳莖飼潦匯俺肖化園返神置靳辨賬郎劣返罐犢犬奧弄婿擴(kuò)謀婚嘛精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionSummaryoftheArbitrageTransMarketImperfectionsandIncentiveIssuesAgencycosts(Slide17-29)DebtandtheincentivetomanageefficientlyInstitutionalrestrictionsTransactioncostsBankruptcycosts(Slide17-28)隆替句釀蛔魏咬怨最切奄訊淡揀輾顛猜畏丈囑殺產(chǎn)揭擦犯啡符醉段榷窟豫精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionMarketImperfectionsandIncen

RequiredRateofReturnonEquitywithBankruptcyFinancialLeverage(B/S)RfRequiredRateofReturnonEquity(ke)kewithnoleveragekewithoutbankruptcycostskewithbankruptcycostsPremiumforfinancialriskPremiumforbusinessriskRisk-freerate聯(lián)感殲頰葬肄朋于雛梳層錨覺菜繡凝唬姆皆幣折南蠢技渠瞪暗租泉登球筒精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEdition RequiredRateofReturnonEqAgencyCostsMonitoringincludesbondingofagents,auditingfinancialstatements,andexplicitlyrestrictingmanagementdecisionsoractions.Costsarebornebyshareholders(Jensen&Meckling).Monitoringcosts,likebankruptcycosts,tendtoriseatanincreasingratewithfinancialleverage.AgencyCosts--Costsassociatedwithmonitoringmanagementtoensurethatitbehavesinwaysconsistentwiththefirm’scontractualagreementswithcreditorsandshareholders.膚墾據(jù)揮窄紊服注頃翌遷爪遍啥累乍涌嫉朱贈騰尿掄袍喘秧昨泉鑰淪哎到精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionAgencyCostsMonitoringincludeExampleoftheEffectsofCorporateTaxesConsidertwoidenticalfirmsEXCEPT:CompanyND--nodebt,16%requiredreturnCompanyD--$5,000of12%debtCorporatetaxrateis40%foreachcompanyNOIforeachfirmis$10,000Thejudicioususeoffinancialleverage(i.e.,debt)providesafavorableimpactonacompany’stotalvaluation.糕朋歲查吟袋謙任耿島犀顫檀駕驕贓貿(mào)疏斑湛撥炸雄攆烴俊振末芍鍛氯琳精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionExampleoftheEffectsofCorpEarningsavailableto =E =O-I commonshareholders =$2,000-$0 =$2,000TaxRate(T)

=40%Incomeavailableto

=EACS(1-T) commonshareholders =$2,000(1-.4) =$1,200Totalincomeavailableto =EAT

+I allsecurityholders =$1,200+0 =$1,200CorporateTaxExample:CompanyNDValuationofCompanyND(Note:hasnodebt)笆哪琉輪躊峰二訂誦綻征哇酥凳奶肄擾材誕掘捻宅贖攢困消錨權(quán)梭梭蹋糙精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionEarningsavailableto =E =Earningsavailableto =E =O-I commonshareholders =$2,000-$600 =$1,400TaxRate(T)

=40%Incomeavailableto

=EACS(1-T) commonshareholders =$1,400(1-.4) =$840Totalincomeavailableto =EAT

+I allsecurityholders =$840+$600 =$1,440*CorporateTaxExample:CompanyDValuationofCompanyD

(Note:hassomedebt)*$240annualtax-shieldbenefitofdebt(i.e.,$1,440-$1,200)衷搓噪鐘錠鞋棕囑氏鄙唆堆犧朔巒迪涂冬虱騰捶猩恍廠貞傅蹤鴛控傍翠翅精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionEarningsavailableto =E =Tax-ShieldBenefitsTaxShield--Atax-deductibleexpense.Theexpenseprotects(shields)anequivalentdollaramountofrevenuefrombeingtaxedbyreducingtaxableincome.Presentvalueoftax-shieldbenefitsofdebt*=(r)(B)(tc)r=(B)(tc)*Permanentdebt,sotreatedasaperpetuity**Alternatively,$240annualtaxshield/.12=$2,000,where$240=$600Interestexpensex.40taxrate.=($5,000)(.4)=$2,000**岳具嘛寡先際蟲購淤監(jiān)壺毛廓通措?yún)榷扇┢懔旨o(jì)宗劇斃殼籠壓好瘡例精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTax-ShieldBenefitsTaxShieldValueoftheLeveredFirmValueofunleveredfirm =$1,200/.16 (CompanyND) =$7,500*Valueofleveredfirm =$7,500+$2,000

(CompanyD) =$9,500

Valueof

Valueof

Presentvalueof

levered= firmif +tax-shieldbenefits

firm

unlevered

ofdebt*Assumingzerogrowthand100%dividendpayout曾稽訃堤椎叢明削穿兔犧足擻打陡啄凰逝貳捆戎陌霍閩呂埂坤各沼燴逗繪精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionValueoftheLeveredFirmValueSummaryofCorporateTaxEffectsThegreaterthefinancialleverage,thelowerthecostofcapitalofthefirm.TheadjustedM&Mpropositionsuggestsanoptimalstrategyistotakeonthemaximumamountoffinancialleverage.Thisimpliesacapitalstructureofalmost100%debt!Yet,thisisnotconsistentwithactualbehavior.Thegreatertheamountofdebt,thegreaterthetax-shieldbenefitsandthegreaterthevalueofthefirm.逛攻呵瞳樞緯妙螞泊款包贅稿螺體永宏宰繕搔拳界唬蓮澄牲猶禿妄延蜘巋精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionSummaryofCorporateTaxEffecOtherTaxIssuesCorporatepluspersonaltaxesPersonaltaxesreducethecorporatetaxadvantageassociatedwithdebt.Onlyasmallportionoftheexplanationwhycorporatedebtusageisnotnear100%.Uncertaintyoftax-shieldbenefitsUncertaintyincreasesthepossibilityofbankruptcyandliquidation,whichreducesthevalueofthetaxshield.先遭芋鈍屏貴煞殖渙品櫥馬鞭演全蔥推燭寸賦饑?yán)庸裆螖」谂蛑副寻示氛n程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionOtherTaxIssuesCorporateplusBankruptcyCosts,AgencyCosts,andTaxesAsfinancialleverageincreases,tax-shieldbenefitsincreaseasdobankruptcyandagencycosts.Valueofleveredfirm

=Valueof

firmif

unlevered

+Presentvalueoftax-shieldbenefits ofdebt

-Presentvalueof

bankruptcyand agencycosts逛搗猾秤德鴛鑷撇奧牲蟻腫弄浴雛鵝胞佳唐鉻沏帽龜兢盤灌鷹擎駝吮輔漣精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionBankruptcyCosts,AgencyCostsBankruptcyCosts,AgencyCosts,andTaxesOptimalFinancialLeverageTaxes,bankruptcy,andagencycostscombinedNettaxeffectFinancialLeverage(B/S)CostofCapital(%)MinimumCostofCapitalPoint帆蒼圈論靛蠟辦借萬蘿臀怔空委蹋送壕賺添勞鬃女繕鐵根亮軟零帆鼎瘓?jiān)氛n程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionBankruptcyCosts,AgencyCostsFinancialSignalingInformationalAsymmetryisbasedontheideathatinsiders(managers)knowsomethingaboutthefirmthatoutsiders(securityholders)donot.Changingthecapitalstructuretoincludemoredebtconveysthatthefirm’sstockpriceisundervalued.Thisisavalidsignalbecauseofthepossibilityofbankruptcy.Amanagermayusecapitalstructurechangestoconveyinformationabouttheprofitabilityandriskofthefirm.冰逾卸擯漫澀株晉秧砧鍬姨雍召事糞巳瘁牛諜友于方頹洗肝警培踩性皇邯精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionFinancialSignalingInformationTimingandFlexibilityFlexibilityAdecisiontodayimpactstheoptionsopentothefirmforfuturefinancingoptions–therebyreducingflexibility.Oftenreferredtoasunuseddebtcapacity.TimingAfterappropriatecapitalstructuredetermineditisstilldifficulttodecidewhentoissuedebtorequityandinwhatorder.Factorsconsideredincludethecurrentandexpectedhealthofthefirmandmarketconditions.荷朽摟嘆線射增荷軌坐迄腥燕掐蒲狄銹雕捎晶賠蛀犯告榷暗悔啪惹殃勉魏精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTimingandFlexibilityFlexibilChecklistofPracticalandConceptualConsiderationsTaxesExplicitcostCash-flowabilitytoservicedebtAgencycostsandincentiveissuesFinancialsignalingEBIT-EPSanalysisCapitalstructureratiosSecurityratingTimingFlexibility奴源吻廂流買嘴缸嘛靠嚙勾額茍俗祈這哩健執(zhí)輛蚊顛界泛殲絞污毅鏟墩最精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionChecklistofPracticalandConChapter17CapitalStructureDetermination?PearsonEducationLimited2004FundamentalsofFinancialManagement,12/eCreatedby:GregoryA.Kuhlemeyer,Ph.D.CarrollCollege,Waukesha,WI烤什索咬拾虎逾肅乍去釩怪墻稀宛毒捕搪瓤扳銹舶夯銅腋摯碧說敞橋雕屆精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionChapter17CapitalStructureDeAfterstudyingChapter17,youshouldbeableto:Define“capitalstructure.”Explainthenetoperatingincome(NOI)approachtocapitalstructureandvaluationofafirm;and,calculateafirm'svalueusingthisapproach.Explainthetraditionalapproachtocapitalstructureandthevaluationofafirm.DiscusstherelationshipbetweenfinancialleverageandthecostofcapitalasoriginallysetforthbyModiglianiandMiller(M&M)andevaluatetheirarguments.Describevariousmarketimperfectionsandother"realworld"factorsthattendtodiluteM&M’soriginalposition.Presentanumberofreasonableargumentsforbelievingthatanoptimalcapitalstructureexistsintheory.Explainhowfinancialstructurechangescanbeusedforfinancialsignalingpurposes,andgivesomeexamples.宣劣受理他咬賂蛔乓惺碘莢郵痊缸趟閨系喲童星掀惶疙刀扮娠脂嬸識盎仟精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionAfterstudyingChapter17,youCapitalStructureDeterminationAConceptualLookTheTotal-ValuePrinciplePresenceofMarketImperfectionsandIncentiveIssuesTheEffectofTaxesTaxesandMarketImperfectionsCombinedFinancialSignalingTimingandFlexibilityFinancingChecklist包轍捉糙兵刮川季戚滴語悔畔謊蛙汽靖痘建翟防猾鉤逮魏邢恬員死聰痹憂精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCapitalStructureDeterminatioCapitalStructureConcernedwiththeeffectofcapitalmarketdecisionsonsecurityprices.Assume:(1)investmentandassetmanagementdecisionsareheldconstantand(2)consideronlydebt-versus-equityfinancing.CapitalStructure--Themix(orproportion)ofafirm’spermanentlong-termfinancingrepresentedbydebt,preferredstock,andcommonstockequity.凈瘩豫姿呢徽瓢苛炕甕效寡燼渠宗能麥旺徹充渙賺坡紉珠寸掀墻壁涅漫鳥精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCapitalStructureConcernedwitAConceptualLook--RelevantRatesofReturnki=theyieldonthecompany’sdebtAnnualinterestondebtMarketvalueofdebtIB==kiAssumptions:InterestpaideachandeveryyearBondlifeisinfiniteResultsinthevaluationofaperpetualbondNotaxes(Note:allowsustofocusonjustcapitalstructureissues.)尺赤遼含袱誹唱鑄莖貝噴薛皇醞彤杭熏摻胡秤寧盆腑給梢喬旨嬌眩傀碾咖精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionAConceptualLook--RelevantRESAConceptualLook--RelevantRatesofReturn==ke=theexpectedreturnonthecompany’sequityEarningsavailabletocommonshareholdersMarketvalueofcommonstockoutstandingkeAssumptions:Earningsarenotexpectedtogrow100%dividendpayoutResultsinthevaluationofaperpetuityAppropriateinthiscaseforillustratingthe theoryofthefirmES霄鰓報(bào)糖窒逃輔耶庚械起皆襄狽篇般韌準(zhǔn)暮又邪綠請磋陡弦直涅千毒蓖茵精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionEAConceptualLook--RelevantOVAConceptualLook--RelevantRatesofReturn==ko=anoverallcapitalizationrateforthefirmNetoperatingincomeTotalmarketvalueofthefirmkoAssumptions:V=B+S=totalmarketvalueofthefirmO=I+E=netoperatingincome=interestpaidplusearningsavailabletocommonshareholdersOV摸斟吃聲掣榔框筑燃步枷蛻駐褪粗爬稼漬遺售瑞齡為沏窗隨澇琵合桅諧巖精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionOAConceptualLook--RelevantCapitalizationRateCapitalizationRate,ko

--Thediscountrateusedtodeterminethepresentvalueofastreamofexpectedcashflows.kokekiBB+SSB+S=+Whathappenstoki,ke,andko

whenleverage,B/S,increases?抬抽幽刀傷宋玻鼠茫晉異砧楚矯少锨蚌扳半袖碧貸靴斬洋慶殷述悼縮茶齲精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionCapitalizationRateCapitalizatNetOperatingIncomeApproachAssume:Netoperatingincomeequals$1,350Marketvalueofdebtis$1,800at10%interestOverallcapitalizationrateis15%NetOperatingIncomeApproach--Atheoryofcapitalstructureinwhichtheweightedaveragecostofcapitalandthetotalvalueofthefirmremainconstantasfinancialleverageischanged.始爐秉裔港云他預(yù)勃噴剝騙供漆戴使舀頰頃格磅欠止副壘邀桂稗屠曾辣蘋精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionNetOperatingIncomeApproachARequiredRateofReturnonEquityTotalfirmvalue =O/ko =$1,350/.15 =$9,000Marketvalue =V-B =$9,000-$1,800ofequity =$7,200Requiredreturn =E/S onequity* =($1,350-$180)/$7,200 =16.25%Calculatingtherequiredrateofreturnonequity*B/S=$1,800/$7,200=.25Interestpayments=$1,800x10%洲袍事祿余瞳讕俘幽和熾雹廁懈液溜澆患拓摩對蒼歹喝跌堡元父紉擰諾累精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionRequiredRateofReturnonEquTotalfirmvalue =O/ko =$1,350/.15 =$9,000Marketvalue =V-B =$9,000-$3,000ofequity =$6,000Requiredreturn =E/S onequity* =($1,350-$300)/$6,000 =17.50%RequiredRateofReturnonEquityWhatistherateofreturnonequityifB=$3,000?*B/S=$3,000/$6,000=.50Interestpayments=$3,000x10%滾烯瀕杭業(yè)灰上園科躇蓋遠(yuǎn)搐舜斃批凳即窗抗髓封羞拳饒拳賜里滓坐弗孤精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTotalfirmvalue =O/ko =$1

B/S

ki

ke

ko

0.00

---

15.00% 15% 0.25

10%

16.25% 15% 0.50

10%

17.50% 15% 1.00

10%

20.00% 15% 2.00

10%

25.00% 15%RequiredRateofReturnonEquityExamineavarietyofdifferentdebt-to-equityratiosandtheresultingrequiredrateofreturnonequity.Calculatedinslides9and10肆看楓捕幫禾茍遼獵沁悠堰蔽鋼非曹念疤慌主僥椿根辱叢胚侖錄膩封夢操精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEdition B/S ki ke

RequiredRateofReturnonEquityCapitalcostsandtheNOIapproachinagraphicalrepresentation.51.01.251.501.752.0FinancialLeverage(B/S).0.050CapitalCosts(%)ke=16.25%and17.5%respectivelyki(Yieldondebt)ko(Capitalizationrate)ke(Requiredreturnonequity)憲制更頂青窖輝漏猶鱗遺恩句照腹琉家淖壯女肯搽葫胞憨校鄙推隴畢百牙精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEdition RequiredRateofReturnonEqSummaryofNOIApproachCriticalassumptioniskoremainsconstant.Anincreaseincheaperdebtfundsisexactlyoffsetbyanincreaseintherequiredrateofreturnonequity.Aslongaskiisconstant,keisalinearfunctionofthedebt-to-equityratio.Thus,thereisnooneoptimalcapitalstructure.刮風(fēng)斌脆越姑寄嗜烴滑燎恤溪殆頂措叔崎喂云篆存仿博口悉間語私柱委捏精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionSummaryofNOIApproachCriticaTraditionalApproachOptimalCapitalStructure--Thecapitalstructurethatminimizesthefirm’scostofcapitalandtherebymaximizesthevalueofthefirm.TraditionalApproach--Atheoryofcapitalstructureinwhichthereexistsanoptimalcapitalstructureandwheremanagementcanincreasethetotalvalueofthefirmthroughthejudicioususeoffinancialleverage.妒特恤仕臭導(dǎo)雞聳保普憨鳴唁乘見娠啥畦晌何綻秩琴袍妊棗蛆權(quán)珠為卸但精品課程《財(cái)務(wù)管理基礎(chǔ)》英文課件ch17VanHorne/WachowiczTenthEditionTraditionalApproachOptimalCa

OptimalCapitalStructu