公司理財本科班第八講紅利政策和資本結(jié)構(gòu)(編輯修改稿)
2025-01-04 22:00 本頁面
【文章內(nèi)容簡介】 per Co. Company has no debt Company has annual cash flow of $900,000 before interest and taxes Corporate tax rate is 35% At time zero, you have the option to exchange 1/2 of your equity position for 5% bonds with face value of $2,000,000. Assume RE for unlevered firm equals to 5% as well. Should you do this and why?,Corporate taxesExamples,Example Continued,Total Cash Flow All equity = 585 *1/2 debt = 620 (520 + 100),Corporate taxespermanent effect,*0.05,Corporate taxes,Example Allequity value = 585/.05 = 11,700,000 PV tax shield = 700,000 Firm value of 189。 debt = $12,400,000,Costs of financial distress,,r,D,E,Bond Yield,Structure of Bond Yield Rates,Costs of financial distress: Traditional View of WACC Without Taxes,Financial distress occurs when promises to creditors are broken or honored with difficulty.,Costs of financial distress,Cost of Financial Distress Costs arising from bankruptcy or distorted business decisions before bankruptcy Market Value Equals Value If: Allequity financed + PV tax shield ? PV costs of financial distress,Costs of financial distress,Direct costs of financial distress,Circular File company has $50 of oneyear debt,Costs of financial distress,Circular File Company has $50 of oneyear debt,Why does equity have any value? Shareholder option to obtain rights to assets by paying $50 debt,Indirect costs of financial distress,Circular File Company invests $10, assumes a discount rate of 50% for the project,Assume NPV of project is (=$2) What is effect on market values?,Costs of financial distress,Circular File Company Value, PostProject Firm value falls by $2 Equityholder gains $3,Costs of financial distress,Circular File Company Value Assumes safe project with NPV = $5 Firm value rises and lack of potential payoff for shareholders causes decrease in equity value,Costs of financial distress,Henrietta Ketchup has two possible investment projects,PECKING ORDER OF FINANCIAL CHOICES 金融選擇中的啄食順序理論,TradeOff Theory Theory that capital structure is based on tradeoff between tax savings and distress costs of debt PeckingOrder Theory Theory stating firms prefer to issue debt over equity if internal finances are insufficient,PECKING ORDER OF FINANCIAL CHOICES,TradeOff Theory and Prices Stockfordebt exchange offers results in stock price falling Inversely, debtforstock exchange offers results in stock price rising Issuing common stock drives down stock prices, whereas repurchases increase stock prices Issuing straight debt has small negative impact,PECKING ORDER OF FINANCIAL
公司管理相關(guān)推薦
鄂ICP備17016276號-1