金融經(jīng)濟(jì)學(xué)capitalstructure課件(參考版)
2024-09-03 06:16本頁面
【正文】 otherwise find a project?s beta Corporate Finance WACC or APV? ? Given that they are not equivalent the choice is relevant ? Using WACC because it is easier is obviously a wrong argument ? Criterion: ? known debt level or known (or target) D/E ratio ? other effects of debt are important (like subsidised debt) ? use APV Corporate Finance Practice ? Calculate your pany?s cost of capital ? Use Thomson One Banker to get betas ? Rf : newspapers ? Market risk premium, 5% (unless you want to research yourself) ? Take all forms of financing into account ? Use market values! ? Use parable panies (see Marriot example) 。s .210 .790 Corporate Finance Answer . 9 279.21.)(. 8 41)(. 7 30 9 6.0 0 4.75.)(?????????WMDCCUUUbbbCorporate Finance Marriot?s OA?s beta is then ? We can average those three, to get ? And its cost of capital (unlevered): . ???% . ?????? MPrr Uf bCorporate Finance Cash flows (Free) cash flow is: ? EBIT Taxes on EBIT (=NOPLAT) ? + Depreciation ? Changes in working capital ? Capital Expenditures Corporate Finance Interest? ? We do not subtract interest because it is a financing cash flow: ? depends on the way the project is financed ? not on the project?s assets themselves Corporate Finance Example: evaluate this project ? Cost of a new plant = 1,000 ? New Sales (per year) = 50 ? Save 100 in year expenses ? Operating costs = 10 / year ? Old plant fully depreciated, salvage value = 50 after tax ? New plant?s salvage value = 200 after 10 years。s Chiken .75 .004 .096 McDonald39。 underinvestment in pp 456460 (formal treatment!) ? Signaling in pp 596598, a slightly more general version than in the slides ? Pecking order theory (pp 598 ff) Cost of Capital and Investment decisions 18 September 2020 WACC Corporate Finance WACC ? Under the assumptions of MM, ? If the pany undertakes a new investment project with same risk as the rest of the pany, the change in value is: ( * ) )1( IBTIE B I TTIV CCL ????????? rBTE B I TTBTVV CCCUL ????? r)1(Corporate Finance WACC ? The new investment is financed with debt or equity or both ? The change in value can also be seen from the liability side: nn BSI ?????IBIBISISIV nonoL??????????????Corporate Finance WACC ? If ?Bo = 0, and using the fact that ?I ? ?Sn ??Bn ? The project adds value for the shareholders if 1????? ????????? ISI BSISIVonnoL( * * ) 1010 ??????????????? IVIVISIS LLooCorporate Finance WACC ? Using (**) in (*): ? If we assume that there is a target capital structure and therefore that ?B/?I = D/(D+E), the term is the WACC ????????????????????????IBTIE B I TTIBTIE B I TTIVCCCCL 1)1(1)1( rr?????? ??? IBT C1rCorporate Finance Derivation: ?????????????????????????????????????????????????????????????DEDTrMPEDDTMPrEDDTrMPEDDTMPEDDMPEDErEDDTrEDErEDDMPEDTEDEMPEDErEDErEDDTrEDDMPEDTrEDErTEDDMPrEDErTEDDrEDErTEDDw a c cUUUffUUUfffUUfffUffEffEf1)1()))1(1(()1()()1()1(bbbbbbbbbCorporate Finance WACC – lessons ? Notice that the standard WACC is a by product of MM, and therefore is relies on the same assumptions ? Notice also there is something intrinsically contradictory in the way it is often applied: ? You start assuming a constant debt level ? Then you assume a target debt ratio ? When the debt ratio is assumed constant, the WACC formula ought to be different Corporate Finance MilesEzzel WACC: dynamic debt ? If we assume the debt ratio is constant, the WACC formula is ? And the formula for relevering betas is CD TrEDDW A C C??? r 1 VS SD bb ?????? ??Corporate Finance Cost of equity: CAPM ? The discount rate for risky investments (expected return) covers: ? The time value of money ? A risk premium ? E(ri) = rf +bi(E(rm) rf) ? This is the most used method to calculate costs of equity ? Alternative: APT (see book for details if interested) Corporate Finance Alternative: Dividend Growth Model ? Gordon?s growth model: ? Thus: grd ivEP ??Pd ivgrE ??Corporate Finance Applying it: ? Need dividend yield and growth rate: ? use analysts? forecasts ? use the plowback ratio formula: g = b x ROE, where b is the retention ratio Note: this ?g? is the socalle
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