公司理財(cái)（精要版）（第9版）課件 14

Chapter14CostofCapitalMcGraw-Hill/IrwinCopyright?2010byTheMcGraw-HillCompanies,Inc.Allrightsreserved.1KeyConceptsandSkillsKnowhowtodetermineafirm’scostofequitycapitalKnowhowtodetermineafirm’scostofdebtKnowhowtodetermineafirm’soverallcostofcapitalUnderstandpitfallsofoverallcostofcapitalandhowtomanagethem14-22ChapterOutlineTheCostofCapital:SomePreliminariesTheCostofEquityTheCostsofDebtandPreferredStockTheWeightedAverageCostofCapitalDivisionalandProjectCostsofCapitalFlotationCostsandtheWeightedAverageCostofCapital14-33WhyCostofCapitalIsImportantWeknowthatthereturnearnedonassetsdependsontheriskofthoseassetsThereturntoaninvestoristhesameasthecosttothecompanyOurcostofcapitalprovidesuswithanindicationofhowthemarketviewstheriskofourassetsKnowingourcostofcapitalcanalsohelpusdetermineourrequiredreturnforcapitalbudgetingprojects14-44RequiredReturnTherequiredreturnisthesameastheappropriatediscountrateandisbasedontheriskofthecashflowsWeneedtoknowtherequiredreturnforaninvestmentbeforewecancomputetheNPVandmakeadecisionaboutwhetherornottotaketheinvestmentWeneedtoearnatleasttherequiredreturntocompensateourinvestorsforthefinancingtheyhaveprovided14-55CostofEquityThecostofequityisthereturnrequiredbyequityinvestorsgiventheriskofthecashflowsfromthefirmBusinessriskFinancialriskTherearetwomajormethodsfordeterminingthecostofequityDividendgrowthmodelSML,orCAPM14-66TheDividendGrowthModelApproachStartwiththedividendgrowthmodelformulaandrearrangetosolveforRE14-77DividendGrowthModelExampleSupposethatyourcompanyisexpectedtopayadividendof$1.50persharenextyear.Therehasbeenasteadygrowthindividendsof5.1%peryearandthemarketexpectsthattocontinue.Thecurrentpriceis$25.Whatisthecostofequity?14-88Example:EstimatingtheDividendGrowthRateOnemethodforestimatingthegrowthrateistousethehistoricalaverageYear Dividend PercentChange2005 1.23 -2006 1.30 2007 1.36 2008 1.43 2009 1.50(1.30–1.23)/1.23=5.7%(1.36–1.30)/1.30=4.6%(1.43–1.36)/1.36=5.1%(1.50–1.43)/1.43=4.9%Average=(5.7+4.6+5.1+4.9)/4=5.1%14-99AdvantagesandDisadvantagesofDividendGrowthModelAdvantage–easytounderstandanduseDisadvantagesOnlyapplicabletocompaniescurrentlypayingdividendsNotapplicableifdividendsaren’tgrowingatareasonablyconstantrateExtremelysensitivetotheestimatedgrowthrate–anincreaseingof1%increasesthecostofequityby1%Doesnotexplicitlyconsiderrisk14-1010TheSMLApproachUsethefollowinginformationtocomputeourcostofequityRisk-freerate,RfMarketriskpremium,E(RM)–RfSystematicriskofasset,14-1111Example-SMLSupposeyourcompanyhasanequitybetaof.58,andthecurrentrisk-freerateis6.1%.Iftheexpectedmarketriskpremiumis8.6%,whatisyourcostofequitycapital?RE=6.1+.58(8.6)=11.1%SincewecameupwithsimilarnumbersusingboththedividendgrowthmodelandtheSMLapproach,weshouldfeelgoodaboutourestimate14-1212AdvantagesandDisadvantagesofSMLAdvantagesExplicitlyadjustsforsystematicriskApplicabletoallcompanies,aslongaswecanestimatebetaDisadvantagesHavetoestimatetheexpectedmarketriskpremium,whichdoesvaryovertimeHavetoestimatebeta,whichalsovariesovertimeWeareusingthepasttopredictthefuture,whichisnotalwaysreliable14-1313Example–CostofEquitySupposeourcompanyhasabetaof1.5.Themarketriskpremiumisexpectedtobe9%,andthecurrentrisk-freerateis6%.Wehaveusedanalysts’estimatestodeterminethatthemarketbelievesourdividendswillgrowat6%peryearandourlastdividendwas$2.Ourstockiscurrentlysellingfor$15.65.Whatisourcostofequity?UsingSML:RE=6%+1.5(9%)=19.5%UsingDGM:RE=[2(1.06)/15.65]+.06=19.55%14-1414CostofDebtThecostofdebtistherequiredreturnonourcompany’sdebtWeusuallyfocusonthecostoflong-termdebtorbondsTherequiredreturnisbestestimatedbycomputingtheyield-to-maturityontheexistingdebtWemayalsouseestimatesofcurrentratesbasedonthebondratingweexpectwhenweissuenewdebtThecostofdebtisNOTthecouponrate14-1515Example:CostofDebtSupposewehaveabondissuecurrentlyoutstandingthathas25yearslefttomaturity.Thecouponrateis9%,andcouponsarepaidsemiannually.Thebondiscurrentlysellingfor$908.72per$1,000bond.Whatisthecostofdebt?N=50;PMT=45;FV=1000;PV=-908.72;CPTI/Y=5%;YTM=5(2)=10%14-1616CostofPreferredStockRemindersPreferredstockgenerallypaysaconstantdividendeachperiodDividendsareexpectedtobepaideveryperiodforeverPreferredstockisaperpetuity,sowetaketheperpetuityformula,rearrangeandsolveforRPRP=D/P014-1717Example:CostofPreferredStockYourcompanyhaspreferredstockthathasanannualdividendof$3.Ifthecurrentpriceis$25,whatisthecostofpreferredstock?RP=3/25=12%14-1818TheWeightedAverageCostofCapitalWecanusetheindividualcostsofcapitalthatwehavecomputedtogetour“average”costofcapitalforthefirm.This“average”istherequiredreturnonthefirm’sassets,basedonthemarket’sperceptionoftheriskofthoseassetsTheweightsaredeterminedbyhowmuchofeachtypeoffinancingisused14-1919CapitalStructureWeightsNotationE=marketvalueofequity=#ofoutstandingsharestimespricepershareD=marketvalueofdebt=#ofoutstandingbondstimesbondpriceV=marketvalueofthefirm=D+EWeightswE=E/V=percentfinancedwithequitywD=D/V=percentfinancedwithdebt14-2020Example:CapitalStructureWeightsSupposeyouhaveamarketvalueofequityequalto$500millionandamarketvalueofdebtequalto$475million.Whatarethecapitalstructureweights?V=500million+475million=975millionwE=E/V=500/975=.5128=51.28%wD=D/V=475/975=.4872=48.72%14-2121TaxesandtheWACCWeareconcernedwithafter-taxcashflows,sowealsoneedtoconsidertheeffectoftaxesonthevariouscostsofcapitalInterestexpensereducesourtaxliabilityThisreductionintaxesreducesourcostofdebtAfter-taxcostofdebt=RD(1-TC)Dividendsarenottaxdeductible,sothereisnotaximpactonthecostofequityWACC=wERE+wDRD(1-TC)14-2222ExtendedExample–WACC-IEquityInformation50millionshares$80pershareBeta=1.15Marketriskpremium=9%Risk-freerate=5%DebtInformation$1billioninoutstandingdebt(facevalue)Currentquote=110Couponrate=9%,semiannualcoupons15yearstomaturityTaxrate=40%14-2323ExtendedExample–WACC-IIWhatisthecostofequity?RE=5+1.15(9)=15.35%Whatisthecostofdebt?N=30;PV=-1,100;PMT=45;FV=1,000;CPTI/Y=3.9268RD=3.927(2)=7.854%Whatistheafter-taxcostofdebt?RD(1-TC)=7.854(1-.4)=4.712%14-2424ExtendedExample–WACC-IIIWhatarethecapitalstructureweights?E=50million(80)=4billionD=1billion(1.10)=1.1billionV=4+1.1=5.1billionwE=E/V=4/5.1=.7843wD=D/V=1.1/5.1=.2157WhatistheWACC?WACC=.7843(15.35%)+.2157(4.712%)=13.06%14-2525EastmanChemicalIClickonthewebsurfertogotoYahooFinancetogetinformationonEastmanChemical(EMN)UnderProfileandKeyStatistics,youcanfindthefollowinginformation:#ofsharesoutstandingBookvaluepersharePricepershareBetaUnderanalystsestimates,youcanfindanalystsestimatesofearningsgrowth(useasaproxyfordividendgrowth)TheBondssectionatYahooFinancecanprovidetheT-billrateUsethisinformation,alongwiththeCAPMandDGMtoestimatethecostofequity14-2626EastmanChemicalIIGotoFINRAtogetmarketinformationonEastmanChemical’sbondissuesEnterEastmanChtofindthebondinformationNotethatyoumaynotbeabletofindinformationonallbondissuesduetotheilliquidityofthebondmarketGototheSECsitetogetbookvalveinformationfromthefirm’smostrecent10Q14-2727EastmanChemicalIIIFindtheweightedaveragecostofthedebtUsemarketvaluesifyouwereabletogettheinformationUsethebookvaluesifmarketinformationwasnotavailableTheyareoftenverycloseComputetheWACCUsemarketvalueweightsifavailable14-2828Example:WorktheWebFindestimatesofWACCat

LookattheassumptionsHowdotheassumptionsimpacttheestimateofWACC?14-2929Table14.1CostofEquity14-3030Table14.1CostofDebt14-3131Table14.1WACC14-3232DivisionalandProjectCostsofCapitalUsingtheWACCasourdiscountrateisonlyappropriateforprojectsthathavethesameriskasthefirm’scurrentoperationsIfwearelookingataprojectthatdoesNOThavethesameriskasthefirm,thenweneedtodeterminetheappropriatediscountrateforthatprojectDivisionsalsooftenrequireseparate

discountrates14-3333UsingWACCforAllProjects-ExampleWhatwouldhappenifweusetheWACCforallprojectsregardlessofrisk?AssumetheWACC=15%Project RequiredReturn IRRA 20% 17%B 15% 18%C 10% 12%14-3434ThePurePlayApproachFindoneormorecompaniesthatspecializeintheproductorservicethatweareconsideringComputethebetaforeachcompanyTakeanaverageUsethatbetaalongwiththeCAPMtofindtheappropriatereturnforaprojectofthatriskOftendifficulttofindpureplaycompanies14-3535SubjectiveApproachConsidertheproject’sriskrelativetothefirmoverallIftheprojecthasmoreriskthanthefirm,useadiscountrategreaterthantheWACCIftheprojecthaslessriskthanthefirm,useadiscountratelessthantheWACCYoumaystillacceptprojectsthatyoushouldn’tandrejectprojectsyoushouldaccept,butyourerrorrateshouldbelowerthannotconsideringdifferentialriskatall14-3636SubjectiveApproach-ExampleRiskLevelDiscountRateVeryLowRiskWACC–8%LowRiskWACC–3%SameRiskasFirmWACCHighRiskWACC+5%VeryHighRiskWACC+10%14-3737FlotationCostsTherequiredreturndependsontherisk,nothowthemoneyisraisedHowever,thecostofissuingnewsecuritiesshouldnotjustbeignoredeitherBasicApproachComputetheweightedaverageflotationcostUsethetargetweightsbecausethefirmwillissuesecuritiesinthesepercentagesoverthelongterm14-3838NPVandFlotationCosts-ExampleYourcompanyisconsideringaprojectthatwillcost$1million.Theprojectwillgenerateafter-taxcashflowsof$250,000peryearfor7years.TheWACCis15%,andthefirm’stargetD/Eratiois.6Theflotationcostforequityis5%,andtheflotationcostfordebtis3%.WhatistheNPVfortheprojectafteradjustingforflotationcosts?fA=(.375)(3%)+(.625)(5%)=4.25%PVoffuturecashflows=1,040,105NPV=1,040,105-1,000,000/(1-.0425)=-4,281TheprojectwouldhaveapositiveNPVof40,105withoutconsideringflotationcostsOncewecon