串講提分專場一帶上課筆記

PartFinancialManagementFinancialManagementPartFinancialManagementFinancialManagementandFinancial?Chapter考試類 分 難Section 2SectionChapterChapterMindFinancialobjectivesandtherelationshipwithcorporate(1)Maximiseshareholders'Financialobjectivesandtherelationshipwithcorporate(1)Maximiseshareholders'?ThewealthoftheshareholdersinacompanycomesDividendsMarketvalueofthe?Ashareholder'sreturnoninvestmentisobtainedintheformDividendsCapitalgainsfromincreasesinthemarketvalueoftheirFinancialobjectivesandtherelationshipwithcorporate(1)Maximiseshareholders'Financialobjectivesandtherelationshipwithcorporate(1)Maximiseshareholders'?TotalshareholderreturnisameasurewhichcombinestheincreaseinsharepricedividendspaidandcanbecalculatedP1-P0+TSRP0-isthesharepriceatthebeginningoftheperiodP1-isthesharepriceattheendofperiodD1-isthedividend Financialobjectivesandtherelationship Financialobjectivesandtherelationshipwithcorporate(2)Profit?Profitmaximizationisanotherfinancialobjective,butitisnotthekeyconsiderationfinancial?ProblemswithadoptinganobjectiveofprofitAccountingprofitscanbemanipulatedtosomeextentbychoicesofaccountingTheobjectiveofprofitmaximisationdoesnottakeaccountofProfitstakenoaccountofthevolumeofProfitsmeasuresofshort-termFinancialobjectivesFinancialobjectivesandtherelationshipwithcorporateNon-financialThewelfareofThewelfareofThefulfilmentofresponsibilitiestowardsThefulfilmentofresponsibilitiestowardsSocialMeasuringtheachievementofcorporateMeasuringtheachievementofcorporate?RatioscanbegroupedintothefollowingfourProfitabilityandDebtandShareholders'investmentratios('stockmarketCapitalemployed=Shareholders'fundspluslong-term=TotalassetslessCapitalemployed=Shareholders'fundspluslong-term=TotalassetslesscurrentProfitmargin×Assetturnover=SalesSalesrevenue·Capital=CapitalReturnonequity=EarningsattributabletoordinaryShareholders'Returnoncapitalemployed CapitalDebtand(1)?Financialgearing(oftensimplyDebtand(1)?Financialgearing(oftensimplyreferredtoas'gearing')istheamountofdebtacompanyusesrelativetoitsequityMVorBVofGearing=MVorBVofdebt+MVorBVofMVorBVofdebtGearing=MVorBVofequity(2)InterestInterestcover=Quickratio=Currentasset-CurrentShareholders'investment(1)ThedividendDividendpershareDividendyield=Ex?divmarketpriceperShareholders'investment(1)ThedividendDividendpershareDividendyield=Ex?divmarketpricepershare(2)EarningspershareEarningspershare=ProfitattributabletoordinaryNumberofordinary(3)ThepriceearningsPriceearningsratio=MarketpriceofAgencyAgencyAgencyAgency?Agencyrelationship:adescriptionoftherelationshipbetweenmanagementandshareholdersexpressingtheideathatmanagersactasagentsfortheshareholder,usingdelegatedpowerstorunthecompanyintheshareholders'best?Shareholdersownthecompany,butmanagers(directors)controlit.Thismeansthemanagerwilloftenmakedecisionstomaximisetheirownwealthratherthanthe4.3Solvingthe4.3Solvingtheagency4.3.1ManagerialrewardschemestominimisetheExecutiveshareoptionplansInashareoptionscheme,selectedemployeesaregivenanumberofshareoptions,eachofwhichgivestheholdertherightafteracertaindatetosubscribeforsharesinthecompanyatafixedprice.Thevalueofanoptionwillincreaseifthecompanyissuccessfulanditssharepricegoesup.Performance-relatedPayorbonusesareusuallyrelatedtothesizeofprofits,butotherperformanceindicatorsmaybeused.Solvingtheagency?Solvingtheagency?AdvantagesanddisadvantagesofGoalcongruence:aligntheobjectivesofmanagersandImprovestaffmotivationandretentionandthuslowerstaffturnoverSolvingtheSolvingtheagency?Advantagesanddisadvantagesof(2)ThereislittleevidenceofapositivecorrelationbetweenshareoptionschemesandthecreationofextrasharevalueSharepricesfrequentlymoveforreasonsthatarenothingtodowiththeactionsofShareoptionswillonlybepartofthetotalremunerationpackagebutmaybethemajorinfluenceonmanagerialdecisionSolvingtheagencySolvingtheagency(1)CorporateGoodcorporategovernanceinvolvesensuringtheeffectivenessofriskmanagementandinternalcontrol,accountabilitytoshareholdersandotherstakeholders,andconductingbusinessinanethicalandeffectiveway.BoardofKeySeparateCEO&Minimum50%non-executiveNEDsshouldbeRemunerationPay&incentivesofexecutiveAuditRiskNEDsNominationChoiceofnewSolvingtheagencySolvingtheagency(2)StockexchangelistingAstockexchangeisanorganisationthatprovidesamarketplaceinwhichtotradeshares.Italsosetsrulesandregulationstoensurethatthestockmarketoperatesbothefficientlyandfairlyforallpartiesinvolved.Tobelistedonstockexchange,astockmustmeetthelistingrequirementslaiddownbythatexchangeinitsapprovalprocess.EachexchangehasitsownparticularlistingNotforprofitNotforprofit?Manyorganizationsarenot-for-profit,inthiscase,amoreappropriateobjectiveistomakesurethattheorganizationisgettinggoodvalueformoney:economy,efficiency,?Valueformoneycanbedefinedasgettingthebestpossiblecombinationofservicesfromtheleastresources,whichmeansmaximisingthebenefitsforthelowestpossibleNotforprofit?Notforprofit?Thisisusuallyacceptedasrequiringtheapplicationofeconomy,effectivenessandefficiency(sometimesknownasthe3Es).(a)Economyisattainingtheappropriatequantityandqualityofinputsatthelowestcosttoachieveacertainlevelofoutputs.(spendingmoneyfrugally)(b)Efficiencyistherelationshipbetweeninputsand(gettingoutasmuchaspossibleforwhatgoes(c)Effectivenessistheextenttowhichdeclaredobjectives/goalsare(gettingdone,bymeansof(a)and(b),whatwassupposedtobeThank感謝您選擇高頓ACCA本節(jié)結(jié)束！Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！PartFinancialManagementPartFinancialManagement??ChapterChapterTheEconomicEnvironmentforFinancialMarkets,MoneyMarketsandChapterTheEconomicEnvironmentChapterTheEconomicEnvironmentfor Section 2SectionChapterChapterMind1.?Theprincipalobjectives1.?TheprincipalobjectivesofmacroeconomicpolicywillbetoachievetheobjectivesofLow(FullBalanceofLow?Totrytoachieveitsobjectives,agovernmentwilluse?Totrytoachieveitsobjectives,agovernmentwilluseanumberofdifferenttoolsorpolicyinstruments.TheseincludetheEconomicEconomicpolicies,includingmonetarypoliciesandfiscalpolicies,areusedtomanageaggregatedemand.Aggregatedemand,inanotherword,equalsGDPoraggregatesupply.AndGDPcanbemeasuredbytheformulabelow:GDP=G+C+I+ConsumerspendingNX:Net1.1.1MonetaryMonetarypolicyreferstoactions1.1.1MonetaryMonetarypolicyreferstoactionsthatthegovernmentundertakesindirectlythroughandfinancial?MoneyThequantityofmoneyavailableinaneconomyiscalledthemoneysupply.Theinthequantityofmoneyistheprimarydeterminantoftheinflation?InterestInterestrateaffectstheeconomy’sinvestment1.1.1Monetary?1.1.1Monetary?ExchangeExchangeratepolicyisalsoamonetarypolicy.Governmentcanintervenetoinfluencetheexchangerate,forexample,byadjustinginterestrates,bycontrollinginternationalcapitalflowandsoon.Therearethreekindsofexchangeratepolicy,fixed,floatingandin-between.Thein-betweenpolicyismorecommoninthecountries.However,exchangeratesaredeterminedbysupplyanddemand,evenunderthefixedexchangerateregime.1.1.2FiscalFiscalpolicyistocollect1.1.2FiscalFiscalpolicyistocollectmoneyintaxorspenditdirectlybygovernment,inorderinfluencetheconditionofthenational?GovernmentGovernmentspendingisfinancedbytaxorgovernmentborrowing,Governmentcanspendmoreonpublicworks,suchas,schools,hospitalsand?Taxationreductionsimulatesconsumptionand,ontheotherhand,taxationdiscouragesTwokindsTwokindsofTwokindsof?Therearetwokindsofpolicyapproaches,expansionaryandTwokindsof?Therearetwokindsofpolicyapproaches,expansionaryandExpansionaryEffecttoEffecttoMonetaryMoney↑MaycauseIncentiveconsumerspending-BetterInterest↓IncentiveinvestmentInvestorstransfermoreinvestmentfromfixedincomeinstrumentstoequityandinvestmentlikerealestateagainstinflationIncentivetheusingofCreditMorelikelytousedebtAveragefinancecostbecomeBetterfinanceExchange↓PossiblycausedbylowerinterestIncentiveexportandde-motiveExportmarketbecomeOverseassupplierbecomeTwokindsof?Therearetwokindsofpolicyapproaches,Twokindsof?Therearetwokindsofpolicyapproaches,expansionaryandExpansionaryEffecttoEffecttoFiscal↑-Increasegovernmentspending-Biddingforgovernment↓-Incentiveconsumerspending-MoresalesandprofitforNote:Fortheterm‘direction’,↑meansincreasingand↓meansOther?MarketisnotOther?Marketisnotperfect.Marketfailureoccurswhenthemarketmechanism–theunseenhandfailstoresultineconomicinefficiencyandleadtosub-optimaloutcome.Therearevariousformsofmarketfailureincluding,ofwhichthefollowingcanmostlybeaddressedbyregulationofmarket:ImperfectSocialcost(orImperfect?Other?Other?Aswellasthegeneralmeasurestoimpactbusinessoperationsdiscussedabove,govermentscanalsotakemorespecificmeasurestoregulatebusiness.ThesemeasureswillcoveraspectssuchCompetitionGovernmentassistanceforGreenCorporategovernance?Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！ChapterFinancialMarkets,ChapterFinancialMarkets,MoneyMarketsand考試類 分 難Section 2SectionChapterMindChapterMind1.Financial1.FinancialDirectIndirect1.FinancialSecuritizationistheprocessofconvertingilliquidassetsintomarketableasset-backedsecurities.These1.FinancialSecuritizationistheprocessofconvertingilliquidassetsintomarketableasset-backedsecurities.Thesesecuritiesarebackedbyspecificassetsandarenormallycalledasset-backedsecuritiesThedevelopmentofsecuritisationhasledtodisintermediationandareductioninthedaytodayroleoffinancialintermediaries,asborrowerscanreachlendersdirectlyafter2FinancialTypical2FinancialTypicalfinancialintermediariesCommercialSavingsandloanPensionLifeinsuranceMutualFinance2.Financial2.2Thebenefits2.Financial2.2Thebenefitsoffinancial?RiskandcostRiskforindividuallendersisreducedbypooling.Sincefinancialintermediarieslendtoalargenumberofindividualsandorganisations,anylossessufferedthroughdefaultbyborrowersorcapitallossesareeffectivelypooledandborneascostsbytheintermediary.Suchlossesaresharedamonglendersin?AggregationofTheycanaggregatesmallersavingsdepositedbysaversandlendontoborrowerslarger2.Financial2.2The2.Financial2.2Thebenefitsoffinancial?MaturityFinancialintermediaries,mostimportantly,providematuritytransformation,ieborrowingmoneyonshortertimeframesthantheylendout.Theybridgethegapbetweenthewishofmostlendersforliquidityandthedesireofmostborrowersforloansoverlonger?Withtheirpoolingofinformationandexpertise,intermediariesareabletoprovideadvicetoborrowersandlendersontheiroptionsdependingupontheirindividual2.Financial2.2Thebenefits2.Financial2.2Thebenefitsoffinancial?Theyprovideobviousandconvenientwaysinwhichalendercansavemoney.Insteadofhavingtofindasuitableborrowerfortheirmoney,thelendercandeposittheirmoneywithafinancialintermediary.Allthelenderhastodoisdecideforhowlongtheymightwanttolendthemoney,andwhatsortofreturntheyrequire,andtheycanthenchooseafinancialintermediarythatoffersafinancialinstrumenttosuittheir?Thereisheavyregulationinplacetoprotectinvestorsagainstnegligenceor3.The3.Therisk-returntrade-?Thereisatrade-offbetweenriskandreturn.Investorsinriskierassetsexpecttobecompensatedfortherisk.Aninvestorhasthechoicebetweendifferentformsof(1)Theinvestormayearninterestbydepositingfundswithafinancialintermediary.(2)Alternatively,theinvestormayinvestdirectlyinacompanybypurchasingsharesorbondsinit.?RiskandreturnofRiskandreturnofdifferent?GovernmentTheriskofdefaultis?CompanyThereissomeriskofdefaultoncompanybonds,corporatetheyareoftensecuredRiskandreturnRiskandreturnofdifferent?Thesearegenerallyriskierthanbondssincetheyrankbehinddebtintheeventofaliquidation,althoughtheyrankaheadofordinaryshares.ThereturntakestheformofafixedpercentagedividendbasedontheparvalueoftheOrdinaryOrdinarysharescarryahighlevelofDividendsarepaidoutofdistributableprofitsafterallotherliabilitieshavebeenpaidandcanbesubjecttolargefluctuationsfromyeartoyear.However,thereisthepotentialforsignificantcapitalappreciationintimesofgrowth.?Thereverseyield?BecausedebtinvolvesThereverseyield?Becausedebtinvolveslowerriskthanequityinvestment,wemightexpectyieldsondebttobelowerthanyieldsonshares.Moreusually,however,theoppositeappliesandtheyieldsonsharesarelowerthanonlow-riskdebt;thissituationisknownasareverseyieldgap.Areverseyieldgapcanoccurbecauseshareholdersmaybewillingtoacceptlowerreturnsontheirinvestmentintheshortterm,inanticipationthattheywillmakecapitalgainsinthefuture.???Bythematurityoftheinstrumentsinthe?Bythematurityoftheinstrumentsinthemarkets,financialmarketscouldbeasmoneymarketsandcapitalCapitalmarketsaremarketsforlong-termMoneymarketsaremarketsforshort-term?DifferencesinmaturitybetweenshorttermandlongShort-Long-10QuestionRankthefollowingfromhighestQuestionRankthefollowingfromhighestrisktolowestriskfromtheinvestor'sPreferenceshareOrdinarysharesTreasurybillsJunk2,1,4,5,1,2,4,5,2,1,5,4,5,2,1,4,InternationalmoneyandInternationalmoneyandcapital?Largercompaniesareabletoborrowfundsontheeurocurrencymarkets(whichareinternationalmoneymarkets)andonthemarketsforeurobonds(internationalcapitalEurocurrencyiscurrencywhichisheldbyindividualsandinstitutionsoutsidethecountryofissueofthatcurrency.Forexample,ifaUKcompanyborrowsUS$50,000fromitsbank,theloanwillbea'eurodollar'loan.Theeurocurrencymarketsinvolvethedepositingoffundswithabankoutsidethecountryofthecurrencyinwhichthefundsaredenominatedandre-lendingthesefundsforafairlyshortterm,typicallythreemonths.Mosteurocurrencytransactionsinfacttakeplacebetweenbanksofdifferentcountriesandtaketheformofnegotiablecertificatesofdeposit.??Internationalmoneyandcapital?AstronginternationalInternationalmoneyandcapital?Astronginternationalmarkethasbuiltupwhichallowsverylargecompaniestoborrowinthisway,longtermorshortterm.Aswellaseurobonds,thereisalsoalesshighlydevelopedmarketininternationalequityshareissues('euro-equity').Aeurobondisabonddenominatedinacurrencywhichoftendiffersfromthatofthecountryofissue.Eurobondsmaybethemostsuitablesourceoffinanceforalargeorganisationwithanexcellentcreditrating,suchasalargesuccessfulmultinationalcompany,which:Requiresalong-termloantofinanceabigcapitalexpansionprogramme;theloanmaybeforatleast5andupto20years.Requiresborrowingwhichisnotsubjecttothenationalexchangecontrolsofanygovernment???By?Byexistencepurposefordealersinthemarkets,financialmarketscouldbeclassifiedasprimarymarketsandsecondarymarketsThefinancialmarketsservetwomainAsprimarymarketstheyenableorganisationstoraisenewfinance,byissuingnewsharesornewbonds.IntheUK,acompanymusthavepubliccompanystatus(beapubliclylistedcompany,or'plc')tobeallowedtoraisefinancefromthepubliconacapitalmarket.Assecondarymarketstheyenableexistinginvestorstobuyandsellexistinginvestments,shouldtheywishtodoso.Themarketabilityofsecuritiesisaveryimportantfeatureofthecapitalmarkets,becauseinvestorsaremorewillingtobuystocksandsharesiftheyknowthattheycouldsellthemeasily,shouldtheywishto.?Transaction?BytransactionTransaction?Bytransactionmodel,secondaryfinancialmarketscouldbeclassifiedasExchangesOTC(over-the-counter)2.3.1?Exchangesaremarketswherebuyersandsellersofsecuritiesbuyandsellsecuritiesinonelocation,theexchange.ExamplesofexchangestheLondonStockExchangetheNewYorkStockExchangeforthetradingoftheChicagoBoardofTradeforthetradingofcommoditiesandderivatives,theLondonInternationalFinancialFuturesandOptionsExchange(LIFFE)forthetradingof?4.3Transaction4.3TransactionAlternatively,secondarymarketscanoperateasoverthecounter(OTC)markets,wheretransactionsdonotinvolvebuyingandsellingthroughanexchange,butcustomersnegotiateindividualtransactions,usuallywithafinancialintermediarysuchasabank.Securitiesthatareissuedinanoverthecountermarketcanbenegotiableornon-NegotiablesecuritiescanbeNon-negotiablesecuritiescannotbe5.Moneymarket?Moneymarketinstrumentsincludeinterest-bearing5.Moneymarket?Moneymarketinstrumentsincludeinterest-bearinginstruments,discountinstrumentsderivativesandcanbeeithernegotiableornon-DiscountMoneyMarketCertificateofDepositBanker'sAcceptanceRepurchaseAgreementCommercialPaper5.1Interest-bearing?Arepurchaseagreementisanagreementbetweentwocounterpartiesunderwhichonecounterpartyagreestosellafinancialinstrumenttotheotheronanagreeddateforanagreedprice,and5.1Interest-bearing?Arepurchaseagreementisanagreementbetweentwocounterpartiesunderwhichonecounterpartyagreestosellafinancialinstrumenttotheotheronanagreeddateforanagreedprice,andsimultaneouslyagreestobuybacktheinstrumentfromthecounterpartyatalaterdateforanagreedhigherprice.Thetypicaltermisupto180daysbutisoftenmuchshorter.Itisanattractiveinstrumentbecauseitcanaccommodateawidespectrumofshort-term??RepoRepo?RepoRepoThank感謝您選擇高頓ACCA本節(jié)結(jié)束！Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！Part?Part????ChapterChapterChapterChapterGeneralinvestmentApplicationofSpecificinvestmentappraisalRiskandUncertaintyChapterChapter Section 2Section 0ChapterChapterGeneralInvestment1ReturnoncapitalemployedEstimatedaverageannualaccountingprofits·ROCEEstimatedaverageAverageinvestment1ReturnoncapitalemployedEstimatedaverageannualaccountingprofits·ROCEEstimatedaverageAverageinvestment=Capitalcost+Disposal2Theothers????????????????= Estimatedtotal ×100%EstimatedinitialQuestionBrendaandEddieareconsideringexpandingtheirrestaurantbusinessQuestionBrendaandEddieareconsideringexpandingtheirrestaurantbusinessthroughpurchaseoftheParkwayDiner,whichwillcost￡350,000totake-overthebusinessandafurther￡150,000torefurbishthepremiseswithnewTheequipmentwillbedepreciatedtozeroresalevalueoverthesameperiodand,afterthesixthyear,BrendaandEddieconfidentlyexpectthattheycouldsellthebusinessfor￡350,000.CalculatetheROCEofthisinvestment(usingtheaverageinvestmentmethod)Cashflow123456QuestionAverageannualprofit=45,000+45,000+55,000+75,000+75,000+=6ROCE=425,000=QuestionAverageannualprofit=45,000+45,000+55,000+75,000+75,000+=6ROCE=425,000=Cashflow1234561Returnoncapital1Returnoncapitalemployed?AdvantagesanddisadvantagesofAquickandsimpleConsistentwithmethodsusedtoevaluatethecompanyasaRelativescore(%)iseasytoConsidersthewholelifeofthe1Returnoncapital1ReturnoncapitalemployedAdvantagesanddisadvantagesofIgnoresthetimingoftheprofitsfromanItisbasedonaccountingprofits,butnotcashArelativemeasureratherthananabsolutemeasureandtakesnoaccountofthesizeoftheinvestmentIttakesnoaccountofthelengthoftheWorsenifasmallamountofextracashisearnedinanextra2Relevantcash???Non-cashflowexpenses2Relevantcash???Non-cashflowexpenses(eg:depreciation,centrally-allocatedSunkcost(eg:marketHistoricalcostofIfmaterialsareusedbyaprojectthentheywillneedtobereplaced,sothereplacementcostisthecashflow,theywon’t,sothecostiszero,lostrevenueiftheycouldhavebeensoldasOnlyusethehistoriccostofmaterialsiftheseotherissuesarenotmentionedina3Payback?Paybackperiodovercomesoneoftheweaknessesofreturnoncapitalemployed(ROCE),whichisnotbasedonaccountingprofitbutusingrelevantcashflow.Thepaybackperiodisthetimetakenfortheinitial3Payback?Paybackperiodovercomesoneoftheweaknessesofreturnoncapitalemployed(ROCE),whichisnotbasedonaccountingprofitbutusingrelevantcashflow.Thepaybackperiodisthetimetakenfortheinitialinvestmenttoberecoveredinthecashinflowsfromtheproject.Thepaybackperiodofproject<thetargetperiod，theprojectisworthytobe??PaybackPeriod=3+18/40=012345netcashcashflowbalancecashflowbalance3PaybackAdvantagesand3PaybackAdvantagesanddisadvantagesofPaybackAsimplewaytoscreeningoutprojectsthatlookstooUsefulwhencompanyhascashflowUsecashflow,whichislessopentoEasyto3PaybackAdvantages3PaybackAdvantagesanddisadvantagesofPaybackIgnoretimevalueofIgnorethecashflowafterthepaybackUnabletodistinguishbetweenprojectswiththesamepaybackChoosingofanycut-offpaybackperiodwillbeTakenoaccountofvariabilityofcash4Timevalueof4.2PresentAfteroneyear100￡100×(1+10%)=100After4Timevalueof4.2PresentAfteroneyear100￡100×(1+10%)=100Aftertwoyear￡100×(1+10%)2=100Afterthreeyear￡100×(1+10%)3=100=100×(1+AfterNyear￡100×(1+11+rPresentvalue=Futurevalue??Where:isdiscountThisistheprocessofdiscounting,whichisthereversalof4TimevalueofCashPVfactorPVofcash$$14TimevalueofCashPVfactorPVofcash$$12344TimevalueofPVofannuity=30,000×0.909+30,000×0.826+30,000×=30,000=30,000×????????????????????????????????????????????=????????????????????4TimevalueofPVofannuity=30,000×0.909+30,000×0.826+30,000×=30,000=30,000×????????????????????????????????????????????=??????????????????????????×????????????????????????????(0.909+0.826+CashPVfactorPVofcash$$12344Timevalue4Timevalueof4Timevalueof?0++3214Timevalueof?0++321假設(shè)折現(xiàn)率為PV=????????????????????????????????????????????=????????????????????????????×???????????????????????????? Timevalueof?…假設(shè)折現(xiàn)率為2301n1+++ …1…+?????????????????? Timevalueof?…假設(shè)折現(xiàn)率為2301n1+++ …1…+??????????????????????????,???????????????????????????????????????????????????????? ????????????????????????????????????????????????????????=????????????, Timevalueof?Delayed假設(shè)折現(xiàn)率為0241351++1 Timevalueof?Delayed假設(shè)折現(xiàn)率為0241351++11 Timevalueof?Delayed假設(shè)折現(xiàn)率為0241351++++11???????? Timevalueof?Delayed假設(shè)折現(xiàn)率為0241351++++11????????????????????????????????????????????????????????????????????????=????????????????????????????????×(????????????-1????????????????????????????????????????????????????????????????????????=????????,????????????×????????????-????????,????????????×????????????=????????,????????????×3.791-????????,????????????× =????????,????????????×(3.791-=4Timevalueof?Delayed假設(shè)折現(xiàn)率為0241531+14Timevalueof?Delayed假設(shè)折現(xiàn)率為0241531+1+1=????????,????????????×????.????????????=PV’1+PV’2+PV’3=????????,????????????×4Timevalueof?Annuity????????????????????????????????????????????4Timevalueof?Annuity????????????????????????????????????????????????????????=????????????×=????????????×????.????????????+=01234Cash5Netpresent?TheNPVmethodcomparesthepresentvalue(PV)of5Netpresent?TheNPVmethodcomparesthepresentvalue(PV)ofallthecashinflowsfromaninvestmentwiththepresentvalueofallthecashoutflowsfromaninvestment.TheNPVisthuscalculatedasthePVofcashinflowsminusthePVofcash?RuleofNPV> TheprojectisfinanciallyNPV< TheprojectisnotfinanciallyNPV= Theprojectbreaks5NetpresentEg:Aprojectcosts$100million,netcashflowforeachyearisasfollows.Itlastsforyears,andthediscountrateis5NetpresentEg:Aprojectcosts$100million,netcashflowforeachyearisasfollows.Itlastsforyears,andthediscountrateis+++++012345NPV=5Netpresent5NetpresentAdvantagesanddisadvantagesofConsidertimevalueofmoney(unlikeROCEandTheyfocusonrelevantcashflow,whichislessopentoAbsoluteTheoreticallymostsound.AlignwithshareholderswealthTheylookatthecashflowsoverthewholelifeoftheproject(unlikepayback5Netpresent5NetpresentAdvantagesanddisadvantagesofDifficulttopredictfuturecashflows,especiallywhenthereisriskandDifficulttodeterminecostofcapital,andcostofcapitalmaychangeoverthelifeoftheprojectNPVmethodignorethepossibilityofcapital6Internalrateofreturn01234Cash1116Internalrateofreturn01234Cash1116Internalrateofreturn0CostofCostof6Internalrateofreturn0CostofCostof6InternalrateofreturnWhencostofcapital6InternalrateofreturnWhencostofcapitalincreases,theNPVamountwilldecrease.Itmightcausetheamountchangefrompositivetonegative.Theinternalrateofreturn(IRR)ofaninvestmentisthecostofcapitalatwhichitsNPVwouldbeexactly$0.ThismethodistoacceptinvestmentwhoseIRRexceedsatargetrateof0CostofSimilaritiesofNPVSimilaritiesofNPVandBothNPVandIRRaresuperiormethodsforinvestmentsappraisalcomparedtotechniquescoveredinthepreviouschapterTheyaccountforthetimevalueofmoney(unlikeROCEandTheyfocusonrelevantcashflows(unlikeTheylookatthecashflowsoverthewholelifeoftheproject(unlikepaybackDifferencesbetweenNPVandAdvantagesDifferencesbetweenNPVandAdvantagesofIRRgivesthe%returnofaproject;thisconceptiseasyfornon-financialmanagerstounderstand.ItdoesnotrequirethecalculationofacostofDisadvantagesofNon-conventionalcashReinvestmentNotsuitableformutuallyexclusiveNon-conventionalcash5%10%15%20%25%30%35%40%45%50%55%Non-conventionalcash5%10%15%20%25%30%35%40%45%50%55%60%65%70%75%80%85%90%95%-CostofCash0123Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！Chapter08ApplicationofNPVChapter08ApplicationofNPV Section 2Section 9~19ChapterChapterApplicationof1Formatof012345SalesVariableFixedTaxablecashTaxAfter-taxcashCAPEX(CapitalScrapNetcashDiscountatPresent1Formatof012345SalesVariableFixedTaxablecashTaxAfter-taxcashCAPEX(CapitalScrapNetcashDiscountatPresent2Sales,costswillincreasewithinflationImpactsoncashCostofcapitalwill2Sales,costswillincreasewithinflationImpactsoncashCostofcapitalwillalsoImpactsoncostofKeyRealtermsorcurrentIgnoringNominalorIncludingImpactoncash1234Nominal$×(1+$×(1+$×(1+$×(1+Sales××××Impactoncash1234Nominal$×(1+$×(1+$×(1+$×(1+Sales××××1234SellingNominal$×(1+$×(1+$×(1+$×(1+Sales××××Impactoncash1234FixedImpactoncash1234FixedInflatedfixed$×(1+$×(1+$×(1+$×(1+ImpactoncostofThefisherImpactoncostofThefisher(1+realrate)*(1+inflationrate)=1+nominalIfallitemsareinthesameinflationrate,wecanchooseusingreal3Taxonprofit3TaxonprofitTaxsavedoncapitalallowanceTaxeffectoncostofcapital(Part3?Whencompanies3?Whencompaniesearnprofit,taxmustbechargedonprofit.Intheexam,thetimepayingtaxshouldbefocused?TaxsavedoncapitalAscompanieshavecapitalallowance,itcangivethemtaxbenefitoncapitalApproachtocalculatetaxsavedoncapitalCalculatetheamountofcapitalMakingthebalancingCalculatethetaxsaved,notingthetimingoftaxNPV—taxin01234InitialScrapFixedNPV—taxin01234InitialScrapFixedAftertaxcashDCF@×××××PresentNPV—taxin012345InitialScrapFixedAftertaxcashNPV—taxin012345InitialScrapFixedAftertaxcashDCF@××××××PresentNPV—taxsaveoncapitalInitialinvestmentcost=Scrapvalue=Tax-allowabledepreciationon25%reducingCorporationtax=123NPV—taxsaveoncapitalInitialinvestmentcost=Scrapvalue=Tax-allowabledepreciationon25%reducingCorporationtax=1234ClosingNPV—taxsaveoncapital012345FixedAftertaxcashNPV—taxsaveoncapital012345FixedAftertaxcashInitialScrapNetcashDCF@××××××Present4Workingcapital012345WorkingcapitalWorkingcapital01234WorkingcapitalWorkingcapital4Workingcapital012345WorkingcapitalWorkingcapital01234WorkingcapitalWorkingcapitalNPV=(890,000)+306,340+193,256+173,978+156,842+218,224+(54,570)=0123456$$$$$$$InitialScrapFixedAftertaxcashNPV=(890,000)+306,340+193,256+173,978+156,842+218,224+(54,570)=0123456$$$$$$$InitialScrapFixedAftertaxcashDCF@1PresentThank感謝您選擇高頓ACCA本節(jié)結(jié)束！Thank感謝您選擇高頓ACCA本節(jié)結(jié)束！ChapterSpecificInvestmentChapterSpecificInvestment 2Section 5ChapterChapterSpecificInvestment1Isitworthpaying1Isitworthpayingmoreforanassetthathasalongerexpectedlife?Howfrequentlyshouldanassetbereplaced?1JapaneseGerman1JapaneseGerman57$30,000$28,6001012345Cash012345Cash1012345Cash012345Cash1E×annuityfactor=012345CashEEEEE1E×annuityfactor=012345CashEEEEE×××××Present1E×3.791=PVof=150,000=Eannuity0121E×3.791=PVof=150,000=Eannuity012345CashEEEEEPresent1012345Cash012345Cash1012345Cash012345Cash1JapaneseGerman57$39,5671JapaneseGerman57$39,567$41,0851Assetreplacement?The1Assetreplacement?Thesolutiontotheseissuesisequivalentannualcost(EAC