博迪教學(xué)課件16

Chapter16:

FinancialStructure oftheFirmObjectiveTounderstandhowafirmcancreatevaluethroughitscapitalstructuredecisions1Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallChapter16Contents16.1InternalVersesExternalFinancing16.2EquityFinancing16.3DebtFinancing16.4TheIrrelevanceofCapitalStructureinaFrictionlessEnvironment16.5CreatingValueThroughFinancingDecisions16.6ReducingCosts16.7DealingwithConflictsofInterest16.8CreatingNewOpportunitiesforStakeholders16.9FinancingDecisionsinPractice16.10HowtoEvaluateLeveredInvestments2Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallIntroductionThebasicunitofanalysisofthischapteristhefirmasawholeWeexaminehowacorporation’smanagementshouldmakedecisionsregardingthemixofdebtandequityWestartwithModiglianiandMiller’smodelofafirminafrictionlessenvironmentwithnotaxandcost-freecontractcompliance,andlaterre-introducefrictions3Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.1InternalVersesExternalFinancingInternalfinancingsourcesoffundsthatarisefromtheoperationofthefirm,andincludesretainedearnings,increasesinaccruedwagesandaccountspayableExternalfundingsourcesoffundsfromoutsidelendersandinvestors,andincludestheproceedsofbondandequityissues4Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallInternalVersesExternalFinancing

DecisionProcessFinancingdecisionsforanestablishedfirm(notundertakingamajorexpansion)areroutineandalmostautomatic,andmayconsistofadividendpolicy,andmaintainingabank’slineofcreditTappingoutsideresourcesistime-consumingformanagementbecauseoftheneedtosatisfystatutoryandskepticalinvestordemands,butitdoesexposethecompany’splanstomarketdiscipline5Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.2EquityFinancingTherearethreekindsofequityclaimsonacompany:Commonstock/sharesCorporateStockoptions/WarrantsPreferredstock6Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallCommonstock/sharesTheresidualclaimstothecorporation’sassetsMaybedividedintoVotingstockNon-votingstockRestrictedorFoundersstock7Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallCorporateStockoptions/WarrantsOptionsissuedbythefirmUsedtoattractandcompensatekeyemployeesandmanagementincorporatestartupsUsedto‘sweeten’thebondsofriskyventures8Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallPreferredstockAbond-likesecuritythatnormallycannottriggeradefaultfornon-paymentofdividendUnlikebonds,ithasadividendthatisnotanexpensefortaxpurposes9Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.3DebtFinancingCorporateDebtisacontractualobligationofthepartoftheorganizationtomakefuturepaymentsinreturnforresourcesprovidedtoit.Itincludes:loansanddebtsecurities,suchasbondsandmortgagespromisestomakefuturepayment,suchasaccountspayable,leasesandmortgages10Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallWenowdescribesecureddebtlong-termleasespensionliabilities11Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallSecuredDebtAnassetpledgedassecurityforadebtiscalledcollateral,andthedebtissaidtobesecured12Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallSecuredDebtShouldacompanywithsecureddebtbecomeinsolvent,thenthesecuredbondholdersarepaidfromtheproceedsofthesaleofthecollateralAnymoneyremainingfromthesaleofthecollateralisaddedtothepoolusedtopayothercreditors:IRS,employeewages,debentureholders,tradecreditors,etceteraIftheproceedsareinadequate,thentheshortfallbecomesageneralliability,andispaidafterpaymenttotheIRS,andwages13Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallLong-TermLeasesLeasinganassetforaperiodoftimethatislongcomparedtotheasset’susefullifeissimilartobuyingtheasset,andfinancingthepurchasewithdebtsecuredbytheleasedassetsThemaindifferenceisinwhobearstheriskassociatedwiththeresidualmarketvalueattheendofthetermoftheleaseAsecondarydifferencemayoccurifthelessorisunabletofullyutilizethedepreciationtaxshelter14Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallPensionLiabilitiesPensionfundsareeitherdefinedcontributiondefinedbenefitSomepensionplansarefunded,andsomeareunfundedSomejurisdictionsrequirethatpensionplansarefunded,and/oraredisclosedinfinancialstatements,othersdonotPensionfundliabilityisoftensubstantialresolvingpreciselywhatacompany’spensionfundliabilitiesareisoftencriticalwhendeterminingcapitalstructure15Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.4TheIrrelevanceofCapitalStructureinaFrictionlessEnvironmentModiglianiandMiller:Inaneconomist’sidealizedworldoffrictionlessmarketsthetotalmarketvalueofallsecuritiesissuedbyafirmisgovernedbytheearningpowerandriskofitsunderlyingrealassets,andisindependentofthemixofsecuritiesissuedtofinancethefirm16Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallFrictionlessEnvironmentAssumptionsnoincometaxesnotransactioncostsofissuingdebt/equitiesinvestorsandmanagementhavesameinformationstakeholdersareabletoresolveconflictscostlessly17Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleNodettDividends=Earnings=EBIT(notax,nointerest)CommonStockMarketValue=$100milliondividends=$10million/year18Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleSomdett(otherwiseidenticaltoNodett)dividends=Earnings=EBIT-DebtServicePerpetualbondsmarketvalue=$40millioncoupon3.2million/year(risk-free,seelater)CommonStockMarketValue=$100-$40=$60milliondividends=$10-$3.2=$6.8million/year19Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleTheprobabilitiesofEBIT(shownlater)aresuchthatthedebtisrisk-free,butthestockhasriskThecontingentclaimschaptershowedthatwecouldevaluatecommonstockbysubtractingthe(risk-free)bondvaluefromthevalueofthecompanyasawholeM&Mfollowsfromcontingentclaimstheory,whichfollowsfromtheLawofOnePrice20Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleLetusseewhathappensifEBITisvolatile,withdiscretevaluesof$5,$10,and$15million(eachwithprobability=33.33%)ThetotaldividendsofNodettwillbe$5,$10,and$15millionThetotaldividendsofSomdettwillbe$1.8,$6.8,and$11.8million(notethat,giventhefacts,theinterestwillalwaysbepaid:thebondholdersareriskless)21Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleTheexpecteddividendsareNodett$10millionSomdett$6.8million(thesamevaluesasinthecaseofnovolatility,resultsfromthedistribution)ThestandarddeviationofNodett’sdividendsis(((-5)^2+0^2+5^2)/3)^0.5=$4.082millionThestandarddeviationofSomdett’sdividends=$4.08222Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleIfwenowassumethat1,000,000sharesofNodett,and600,000sharesofSomdettwereissued,(marketvalueisthen$100each),eachshare’sreturnhasthestatistics:23Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleNotethatthetwovaluesfallonthelinem=rf+s

(firm’sreturn-bond’sreturn)WewouldexpectthisCML-likebehaviorAdditionally,iftheun-leveragedstockhasabeta=b,thenthebetaoftheleveragedstockisb/0.624Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleConclusionIfNodettweretoissue$40millionofdebt,andrepurchase400,000sharesat$100each,thevalueoftheoutstandingshareswouldremainunchangedat$(100,000,000-40,000,000)/(1,000,000-400,000)=$100eachIfthedebtwasnot,infact,risk-free,thentheanalysiswillbecomealittlemorecomplex,buttheessentialconclusionsareunchanged25Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.5CreatingValueThroughFinancingDecisionsWenowtakeastepinthedirectionofgreaterrealismWereintroducetaxBankruptcycostsCostlystakeholderconflictsFinancialintermediarybenefits26Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.6ReducingCostsByitschoiceofcapitalstructure,afirmcanreduceitscosts.Examplesaretaxes.Subsidies,andthecostoffinancialdistress27Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallTaxesInadditiontoshareholdersandcreditors,thegovernmenttaxauthorityisaclaimanttotheEBITofafirmSomeofthetaxesarepaidatthecorporatelevel,andsomeattheleveloftheindividualshareholdersrealizedcapitalgainspersonaltaxesoncashdividends28Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallExampleReconsiderNodettandSomdett,thistimeinaworldwherethereisa34%taxonearningsafterinterest,andnopersonalincometaxes29Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallClaimantClasses30Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallLeverage(Gearing)Equations31Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallMaximizationofSomdett’sCashFlowThecashflowsabovearethecombinedflowstotheshareholders&stockholdersThegreatertheannualinterestpayment,thegreaterthecombinedcashflow,andthegreaterthevalueofthefirmasawholeTheMarketValueofSomdett=MarketValueofNodett+PVInterestTaxShield32Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallMaximizationofSomdett’sCashFlowEarlier,weshowedthatthe$40milliondebtissueat8%wasrisk-free,giventhedistributionofearningsThemarketvaluesofclaimsisthengiveninthenexttable:33Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallMarketValuesofClaims34Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallValueofTaxShieldThevalueofthetaxshieldisthelossofvaluetothegovernmentofissuingbonds,$(34.0-20.4)million=$13.6million=valueofbonds*interestRecallfrombefore,weconvertedNodettintoanimageofSomdettbypurchasingsharesandissuing$40millionofbonds35Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallValueofTaxShieldDirectlyaftertheannouncement,thesharepricewillrisefrom$66to$(66+13.6)=$79.6eachThecompanywouldrepurchase$40million/$79.6=502,513shares,leaving497,487outstandingSellerswillbesubjecttoanadditionalcapitalgainof$13.6/share,andholderstoanunrealizedcapitalgainofthesameamount36Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallSub-chapterSCorporationsAsmallbusinessmaysetupasa‘sub-chapterS’corporationandbetaxedasapartnershipInthiscase,theearningsarepassedthroughtoshareholderswithoutcorporatetaxes,sothereisnotaleverageadvantageTheModiglianiandMillersymmetryisnotshatteredbyintroducingtaxesinthiscase37Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallSubsidiesSomegovernmentsofferincentivestobusinessestore-locatetoachieveasocialgoalThegovernmentmayguaranteeabondissue,resultinginlowerdebtserviceThevalueofthedebtguaranteeisacapitalgaintotheshareholders,offsetbythelowervalueoftheinteresttaxshield,andtheadditionalcostsofrelocatingthefacility38Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallReducingCosts:SubsidiesSomegovernmentsofferincentivestobusinessestore-locatetoachieveasocialgoalThegovernmentmayofferinvestmenttaxcredits,and/orimmediatedepreciationofnewcapitalinvestments,and/ortaxholidaysTheseareessentiallypaymentstotheshareholders,thatarepartlyoffsetbyotherlosses39Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallReducingCosts:FinancialDistressLet’slookatafirmwherethereisaprobabilityoffinancialdistressFinancialdistress:theimminentdangerofdefaultingondebt40Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall41Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.7DealingwithConflictsofInterest:‘FreeCashFlow’Havingdebtoutstandingreducesthe‘freecashflow’andthismakesmanagersmoreaccountabletothemarketTheneedfornewfinancingoccursmorefrequently,makingmanagerslesslikelytoinvestinprojectsthatincreasetheirpower,prestigeorperks42Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallIncreasingRisksManagement(actingintheinterestsofshareholders)mayincreasetotalriskattheexpenseoftotalvalueofthefirmBadpennycurrentlyhasbondsandstockoutstanding,eachwithamarketvalueof$50million,andhasassetsinvestedinshort-termT-billsManagemententersintoaprojectwithCaponeEnterprisesinwhichanunfaircoin(withaprobability60%heads)istossedintheairIfa‘tail’shows,CaponeIndustrieswilldoubleBadpenny’sinvestmentinT-bills,otherwise,CaponetakesallBadpenny’sT-bills43Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallBadpenny(Continued)IfBadpennyisunlucky,itsbondsandstockwillbeworthnothingIfBadpennyislucky,itsbondsretaintheoriginalvalue,butthestockpricewilltripleTheexpectedwealthofBadpenny’sbondholdersis$(1-0.60)*50million=$20millionTheexpectedwealthofthestockholdersis$(1-0.60)*(200-50)million=$60millionNewexpectedvalueofthefirm=$80million44Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.8CreatingNewOpportunitiesforStakeholdersCapitalstructuredecisionsmaycreatevaluebycreatingopportunitiesthatmaynototherwisebeavailable,oravailableonlyatahigherpriceExample:Pensionpromises45Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHall16.9FinancialDecisionsinPracticeTheselectionoffinancingmethodiscompanyspecificasitwilldependupontheeconomicenvironmentinwhichthefirmfindsitselfWhatfinancingmethodismostappropriateforthefollowingfivecompanies?46Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallOrreOilCompanyNeeds$10millionnowtotestdrillinNewGuinea$10millionmoretodevelopiftestissuccessfulCurrentlyEarnings$2/share,&Stockis$10/share(Industry:Stock@10to12timesearnings)Debtratio25%(Industryis40%)Totalassets$105million47Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallGormehFoods,Inc.CurrentlyAssets$15million,5equalshareholdersProfitable,rapidgrowthcausing$$strainNeed$2millionfornewequipmentRealestateheavilymortgagedInventorysecuresbankloanAccountsreceivablesarefactored48Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallBombayTextileCompanySub-Continentbasedclothmanufacturer50%productiongoestosmallclothingmanufacturersinSingaporeP&Efinancedinpartbygovernmentloan,nootherlong-termdebtPayscashforinputs,andoffers60daycredittoSingaporecustomersGrowthinexports(now5million)haveledtoaneedfor$500,000newfinancing49Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallHoley’sBurgerQueenHoley’ssavingsare$50,000,andhewishestopurchaseaBurgerQueenfranchiseBurgerQueenrequiresminimumof$100,000equitycapital,andwillthenprovidedebtfinancingoftheremainderAnexistingBurgerQueenisonthemarketfor$250,00050Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallLeeProductionsSmallmovieproductioncompanywith10ownersOnerecent“unexpected”successWanttodoublethenumberoffilmsbeingproducedRecentlyincorporated,andwantstoraise$10millionfromoutsideinvestors51Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallFiveFinancingMethodsLoansfromfriendsorrelativesLeasingArrangementsCommonstockDebtwithwarrantsFactoringreceivables52Copyright?2009PearsonEducation,Inc.PublishingasPrenticeHallAlsoConside