公司理財(cái)chap027

1、McGraw-Hill/IrwinCopyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved CHAPTER27Cash ManagementSlide 2Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinKey Concepts and Skills Understand the reasons for holding cash balances, as well as potential

2、methods for determining the target cash balance Understand the concept of float, as well as tools for managing disbursement and collections floatSlide 3Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinChapter Outline27.1 Reasons for Holding Cash27.2 Determining

3、the Target Cash Balance27.3 Managing the Collection and Disbursement of Cash27.4 Investing Idle CashSlide 4Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin27.1 Reasons for Holding Cash Transactions motive Ability to cover normal activities of the firm Compensat

4、ing balances Hold required balances with financial institutionsSlide 5Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin27.2 Determining the Target Cash Balance The Baumol Model The Miller-Orr Model Other Factors Influencing the Target Cash BalanceSlide 6Copyrigh

5、t 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinCosts of Holding CashOpportunity CostsTrading costsTotal cost of holding cashC*Costs in dollars of holding cashSize of cash balanceThe investment income foregone when holding cash.Trading costs increase when the firm must

6、 sell securities to meet cash needs.Slide 7Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinThe Baumol ModelF = The fixed cost of selling securities to raise cashT = The total amount of new cash neededR = The opportunity cost of holding cash, a.k.a. the interest

7、 rate.TimeC1 2 3C2If we start with $C, spend at a constant rate each period and replace our cash with $C when we run out of cash, our average cash balance will be .C2The opportunity cost of holding is C2C2RSlide 8Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/Irwin

8、The Baumol ModelTimeCAs we transfer $C each period we incur a trading cost of F each period. 1 2 3C2The trading cost is F TCTCIf we need $T in total over the planning period we will pay $F times.Slide 9Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinThe Baumol

9、ModelC*Size of cash balanceFTRCC2cost TotalOpportunity CostsRC2FTCTrading costsThe optimal cash balance is found where the opportunity costs equals the trading costsFRTC2*Slide 10Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinThe Baumol ModelOpportunity Costs

10、= Trading CostsFCTRC2The optimal cash balance is found where the opportunity costs equals the trading costs.RTFC2*Multiply both sides by CFTRC22RFTC 22Slide 11Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinThe Miller-Orr Model The firm allows its cash balance

11、to wander randomly between upper and lower control limits.$TimeUZLWhen the cash balance reaches the upper control limit U, cash is invested elsewhere to get us to the target cash balance Z.When the cash balance reaches the lower control limit, L, investments are sold to raise cash to get us up to th

12、e target cash balance.Slide 12Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinThe Miller-Orr Model Math Given L, which is set by the firm, the Miller-Orr model solves for Z and ULKFZ32*43LZU23*where s2 is the variance of net daily cash flows. The average cash b

13、alance in the Miller-Orr model is: 34balancecash Average*LZ Slide 13Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinImplications of the Miller-Orr ModelTo use the Miller-Orr model, the manager must do four things: Set the lower control limit for the cash balanc

14、e. Estimate the standard deviation of daily cash flows. Determine the interest rate. 1. Estimate the trading costs of buying and selling securities.Slide 14Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinImplications of the Miller-Orr ModelThe model clarifies t

15、he issues of cash management: The best return point, Z, is positively related to trading costs, F, and negatively related to the interest rate R. Z and the average cash balance are positively related to the variability of cash flows.Slide 15Copyright 2008 by The McGraw-Hill Companies, Inc. All right

16、s reserved McGraw-Hill/IrwinOther Factors Influencing the Target Cash Balance Borrowing Borrowing is likely to be more expensive than selling marketable securities. The need to borrow will depend on managements desire to hold low cash balances.Slide 16Copyright 2008 by The McGraw-Hill Companies, Inc

17、. All rights reserved McGraw-Hill/Irwin27.3 Managing the Collection and Disbursement of Cash Accelerating Collections Delaying Disbursements Disbursement Float Zero-Balance Accounts Drafts Ethical and Legal Questions Electronic Data InterchangeSlide 17Copyright 2008 by The McGraw-Hill Companies, Inc

18、. All rights reserved McGraw-Hill/IrwinFloat The difference between bank cash and book cash is called float. Float management involves controlling the collection and disbursement of cash.Slide 18Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinAccelerating Colle

19、ctionsCustomer mails paymentCompany receives paymentCompany deposits paymentCash receivedMail delayMail floatProcessing delayProcessing floatClearing delayClearing floattimeCollection floatSlide 19Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinOverview of Lock

20、box Processing Corporate Customers Corporate Customers Corporate Customers Corporate Customers Local Bank Collects funds from PO Boxes Envelopes opened; separation of checks and receipts Deposit of checks into bank accounts Details of receivables go to firm Firm processes receivables Bank clears che

21、cks Post Office Box 1 Post Office Box 2Slide 20Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinDelaying DisbursementsWrite check on a distant bank.Hold payment for several days after postmarked in office.Call supplier firm to verify statement accuracy for large

22、 amounts.Mail from distant post office.Mail from post office that requires a great deal of handling. Firm prepares check to supplier Post Officeprocessing Delivery of check to supplier Deposit goes to suppliers bank Bank collects fundsSlide 21Copyright 2008 by The McGraw-Hill Companies, Inc. All rig

23、hts reserved McGraw-Hill/IrwinDrafts Firms sometimes use drafts instead of checks. Drafts differ from checks because they are not drawn on a bank but on an issuer (the firm) and are payable by the issuer. The bank acts only as an agent, presenting the draft to the issuer for payment. When the draft

24、is transmitted to a firms bank for collection, the bank must present the draft to the issuing firm for acceptance before making payment. After the draft has been accepted, the firm must deposit the necessary cash to cover the payments. This allows the firm to keep less cash on hand.Slide 22Copyright

25、 2008 by The McGraw-Hill Companies, Inc. All rights reserved McGraw-Hill/IrwinEthical and Legal Questions The financial managers must always work with collected company cash balances and not with the companys book balance, which reflects checks that have been deposited but not collected. If you are borrowing the banks money without their knowledge, you are raising serious ethical and legal questions.Slide 23Copyright 2008 by The McGraw-Hill Com