财务管理课件chap013.ppt

上传人:王** 文档编号:480281 上传时间:2023-09-15 格式:PPT 页数:40 大小:2.45MB
下载 相关 举报
财务管理课件chap013.ppt_第1页
第1页 / 共40页
财务管理课件chap013.ppt_第2页
第2页 / 共40页
财务管理课件chap013.ppt_第3页
第3页 / 共40页
财务管理课件chap013.ppt_第4页
第4页 / 共40页
财务管理课件chap013.ppt_第5页
第5页 / 共40页
财务管理课件chap013.ppt_第6页
第6页 / 共40页
财务管理课件chap013.ppt_第7页
第7页 / 共40页
财务管理课件chap013.ppt_第8页
第8页 / 共40页
财务管理课件chap013.ppt_第9页
第9页 / 共40页
财务管理课件chap013.ppt_第10页
第10页 / 共40页
亲,该文档总共40页,到这儿已超出免费预览范围,如果喜欢就下载吧!
资源描述

《财务管理课件chap013.ppt》由会员分享,可在线阅读,更多相关《财务管理课件chap013.ppt(40页珍藏版)》请在优知文库上搜索。

1、Leverage and Capital StructureChapter 1313.1Key Concepts and SkillsnUnderstand the effect of financial leverage on cash flows and cost of equitynUnderstand the impact of taxes and bankruptcy on capital structure choicenUnderstand the basic components of the bankruptcy process13.2Chapter OutlinenThe

2、Capital Structure QuestionnThe Effect of Financial LeveragenCapital Structure and the Cost of Equity CapitalnCorporate Taxes and Capital StructurenBankruptcy CostsnOptimal Capital StructurenObserved Capital StructuresnA Quick Look at the Bankruptcy Process13.3Capital RestructuringnWe are going to lo

3、ok at how changes in capital structure affect the value of the firm,all else equalnCapital restructuring involves changing the amount of leverage a firm has without changing the firms assetsnIncrease leverage by issuing debt and repurchasing outstanding sharesnDecrease leverage by issuing new shares

4、 and retiring outstanding debt13.4Choosing a Capital StructurenWhat is the primary goal of financial managers?nMaximize stockholder wealthnWe want to choose the capital structure that will maximize stockholder wealthnWe can maximize stockholder wealth by maximizing firm value or minimizing WACC13.5T

5、he Effect of LeveragenHow does leverage affect the EPS and ROE of a firm?nWhen we increase the amount of debt financing,we increase the fixed interest expensenIf we have a really good year,then we pay our fixed cost and we have more left over for our stockholdersnIf we have a really bad year,we stil

6、l have to pay our fixed costs and we have less left over for our stockholdersnLeverage amplifies the variation in both EPS and ROE13.6Example:Financial Leverage,EPS and ROEnWe will ignore the effect of taxes at this stagenWhat happens to EPS and ROE when we issue debt and buy back shares of stock?13

7、.7Example:Financial Leverage,EPS and ROEnVariability in ROEnCurrent:ROE ranges from 6.25%to 18.75%nProposed:ROE ranges from 2.50%to 27.50%nVariability in EPSnCurrent:EPS ranges from$1.25 to$3.75nProposed:EPS ranges from$0.50 to$5.50nThe variability in both ROE and EPS increases when financial levera

8、ge is increased13.8Break-Even EBITnFind EBIT where EPS is the same under both the current and proposed capital structuresnIf we expect EBIT to be greater than the break-even point,then leverage is beneficial to our stockholdersnIf we expect EBIT to be less than the break-even point,then leverage is

9、detrimental to our stockholders13.9Example:Break-Even EBIT$2.00400,000800,000EPS$800,000EBIT800,0002EBITEBIT400,000EBIT200,000400,000EBIT200,000400,000EBIT400,000EBIT13.10Example:Homemade Leverage and ROEnCurrent Capital StructurenInvestor borrows$2000 and uses$2000 of their own to buy 200 shares of

10、 stocknPayoffs:nRecession:200(1.25)-.1(2000)=$50nExpected:200(2.50)-.1(2000)=$300nExpansion:200(3.75)-.1(2000)=$550nMirrors the payoffs from purchasing 100 shares from the firm under the proposed capital structurenProposed Capital StructurenInvestor buys$1000 worth of stock(50 shares)and$1000 worth

11、of Trans Am bonds paying 10%.nPayoffs:nRecession:50(.50)+.1(1000)=$125nExpected:50(3.00)+.1(1000)=$250nExpansion:50(5.50)+.1(1000)=$375nMirrors the payoffs from purchasing 100 shares under the current capital structure13.11Capital Structure TheorynModigliani and Miller Theory of Capital StructurenPr

12、oposition I firm valuenProposition II WACCnThe value of the firm is determined by the cash flows to the firm and the risk of the assetsnChanging firm valuenChange the risk of the cash flowsnChange the cash flows13.12Capital Structure Theory Under Three Special CasesnCase I AssumptionsnNo corporate o

13、r personal taxesnNo bankruptcy costsnCase II AssumptionsnCorporate taxes,but no personal taxesnNo bankruptcy costsnCase III AssumptionsnCorporate taxes,but no personal taxesnBankruptcy costs13.13Case I Propositions I and IInProposition InThe value of the firm is NOT affected by changes in the capita

14、l structurenThe cash flows of the firm do not change,therefore value doesnt changenProposition IInThe WACC of the firm is NOT affected by capital structure13.14Case I-EquationsnWACC=RA=(E/V)RE+(D/V)RDnRE=RA+(RA RD)(D/E)nRA is the“cost”of the firms business risk,i.e.,the risk of the firms assetsn(RA

15、RD)(D/E)is the“cost”of the firms financial risk,i.e.,the additional return required by stockholders to compensate for the risk of leverage13.15Case I-ExamplenDatanRequired return on assets=16%,cost of debt=10%;percent of debt=45%nWhat is the cost of equity?nRE=.16+(.16-.10)(.45/.55)=.2091=20.91%nSup

16、pose instead that the cost of equity is 25%,what is the debt-to-equity ratio?n.25=.16+(.16-.10)(D/E)nD/E=(.25-.16)/(.16-.10)=1.5nBased on this information,what is the percent of equity in the firm?nE/V=1/2.5=40%13.16Figure 13.313.17The CAPM,the SML and Proposition IInHow does financial leverage affect systematic risk?nCAPM:RA=Rf+A(RM Rf)nWhere A is the firms asset beta and measures the systematic risk of the firms assetsnProposition IInReplace RA with the CAPM and assume that the debt is riskles

展开阅读全文
相关资源
猜你喜欢
相关搜索

当前位置:首页 > 高等教育 > 大学课件

copyright@ 2008-2023 yzwku网站版权所有

经营许可证编号:宁ICP备2022001189号-2

本站为文档C2C交易模式,即用户上传的文档直接被用户下载,本站只是中间服务平台,本站所有文档下载所得的收益归上传人(含作者)所有。装配图网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对上载内容本身不做任何修改或编辑。若文档所含内容侵犯了您的版权或隐私,请立即通知装配图网,我们立即给予删除!