公司理財英文版課件chap016-資料下載頁
2025-01-04 22:00本頁面
【正文】 aims may be impacted by capital structure decisions,1638,The PeckingOrder Theory,Theory stating that firms prefer to issue debt rather than equity if internal financing is insufficient. Rule 1 Use internal financing first Rule 2 Issue debt next, new equity last The peckingorder theory is at odds with the tradeoff theory: There is no target D/E ratio Profitable firms use less debt Companies like financial slack,1639,Observed Capital Structure,Capital structure does differ by industry Differences according to Cost of Capital 2008 Yearbook by Ibbotson Associates, Inc. Lowest levels of debt Computers with 5.61% debt Drugs with 7.25% debt Highest levels of debt Cable television with 162.03% debt Airlines with 129.40% debt,1640,Work the Web Example,You can find information about a company’s capital structure relative to its industry, sector and the Samp。P 500 at Reuters Click on the web surfer to go to the site Choose a company and get a quote Choose Ratio Comparisons,1641,Bankruptcy Process – Part I,Business failure – business has terminated with a loss to creditors Legal bankruptcy – petition federal court for bankruptcy Technical insolvency – firm is unable to meet debt obligations Accounting insolvency – book value of equity is negative,1642,Bankruptcy Process – Part II,Liquidation Chapter 7 of the Federal Bankruptcy Reform Act of 1978 Trustee takes over assets, sells them and distributes the proceeds according to the absolute priority rule Reorganization Chapter 11 of the Federal Bankruptcy Reform Act of 1978 Restructure the corporation with a provision to repay creditors,1643,Quick Quiz,Explain the effect of leverage on EPS and ROE What is the breakeven EBIT, and how do we compute it? How do we determine the optimal capital structure? What is the optimal capital structure in the three cases that were discussed in this chapter? What is the difference between liquidation and reorganization?,1644,Ethics Issues,Suppose managers of a firm know that the company is approaching financial distress. Should the managers borrow from creditors and issue a large onetime dividend to shareholders? How might creditors control this potential transfer of wealth?,1645,Comprehensive Problem,Assuming perpetual cash flows in Case II Proposition I, what is the value of the equity for a firm with EBIT = $50 million, Tax rate = 40%, Debt = $100 million, cost of debt = 9%, and unlevered cost of capital = 12%?,1646,End of Chapter,16
公司管理相關(guān)推薦
鄂ICP備17016276號-1