5costofcapital
CH10TheCostofCapital财务管理英文版.ppt
ks = kd + RP
= 10.0% + 4.0% = 14.0%
This RP CAPM RP.
Produces ballpark estimate of ks. Useful check.
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
Example:
10 - 12
kp = 9% kd = 10% T = 40%
kp, AT = kp – kp (1 – 0.7)(T) = 9% – 9%(0.3)(0.4) =
7.92%.
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
10 - 16
What’s the cost of common equity based on the CAPM?
kRF = 7%, RPM = 6%, b = 1.2.
ks = kRF + (kM – kRF )b.
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
10 - 20
Could DCF methodology be applied if g is not constant?
YES, nonconstant g stocks are expected to have constant g at some point, generally in 5 to 10 years.
Copyright © 2001 by Harcourt, Inc.
All rights reserved.
第五章 资本成本 (The Cost of Capital)
x 0.04103.12 4.125 0.0237
x = kd － 0.10174.32
174.32
kd = 0.10 + X = 0.10 + 0.0237 = 0.1237或12.37%
第三步，计算债务的税后成本kdT 。 kdT = 12.37%（1 － 33%） = 8.29%
二、优先股的成本 企业发行优先股的成本的计算公式如下：
= 80（5.660）+ 1 000（0.237）
= 452.80 + 237.00 = 689.80（元）
第二步，利用插值法计算债券价格为761元时的 成本kd 。
0.10
0.04
X
k d
689.80
864.12 761.00 103.12
0.14
174.32
x 103.12 0.04 174.32
用某个特定资本成本可 筹到的某种资本限额
BP
该种资本在资本结构中 所占比重
资本加权平均成 本（%）
12.51
WACC = MCC
0
筹集的新资本
图5－1 泰亚公司资本边际成本线
[例5—9]假设凯悦公司2004年年末的简要资产负债表。
简要资产负债表
2004年12月31日
（单位：元）
资产
年末数 负债及股东权益 年末数
在公司的资产负债表右方，是各种资本的 具体构成，包括各类负债，优先股本和普通股 本等。这些项目“资本构成要素”（Capital Components）。
“资本成本”（cost of capital）?
Myron J. Gordon 在 他 的 《Investment Financing and Valuation of the Corporation》 （ Homewood, I11: Richard D. Irwin Inc., 1962）,P218提出： “一个厂商的资本成本是财产的折现率，高于 （或低于）这个折现率的某项投资的利润率， 将会提高（或降低）这个厂商的价值。”
The Cost of Capital
Should our analysis focus on historical (embedded) costs or new (marginal) costs?
• The cost of capital is used primarily to make
decisions that involve raising new capital. So, focus on today’s marginal costs (for WACC).
10-5
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60% common equity.
9-7
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What sources of capital do firms use?
10-2
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Cost_of_Capital
1. Dividend Growth Model
• Value of a share of stock the present value of its expected future cash flow…
D0 1 g D0 1 g D0 1 g D0 1 g P0 1 2 3 1 r 1 r 1 r 1 r
Depending on the availability of data, either of the two models or both can be used to estimate Ke. With two values, the average can be used as the cost of equity. For example, in Kellog’s case, we have
Debt Component
• The cost of debt (Kd) is the rate that firms have to pay when they borrow money • Since interest expenses are tax-deductible, the cost of debt must be adjusted for taxes (t) prior to including it in the WACC calculation:
D0 (1 g ) P0 K e g
where D0 Po g Ke
D0 (1 g ) Ke g P0
= last paid dividend per share; = current market price per share; and = constant growth rate of dividend = cost of equity capital
Cost of Capital资金成本
4 Steps to calculate IRR: ① Identify cash flows. From issuer point of view, interest payment should be included net of tax, but from investor point of view, tax is not deducted. ② Estimates the IRR ③ Calculate two NPVs (one –ve and one +ve) ④ Calculate the IRR
The Cost of Equity – ke
3
The Cost of Equity – ke
4
The Cost of Equity – ke
5
The Cost of Equity – ke
6
The Cost of Debt – kd
The cost of debt is the rate of return that debt providers require on the funds that they provide. The value of debt is assumed to be the present value of its future cash flows. Features: 1. Debt is tax deductible and hence interest payment are made net of tax 2. Debt is always quoted in $100 nominal units or blocks. 3. Interest paid on the debt is stated as a percentage of nominal value. This is known as coupon rate (not the cost of debt). Interest payable = coupon rate * nominal value of the debt 4. Debt is normally redeemable at par (nominal value) or at a premium or discount. 5. Interest can be either fixed or floating (variable) on borrowings, but bonds normally pay fixed rate interest.
Chapter 16 – Cost of Capital
Earnings Yield Model
Ke = Earnings per share ÷ Price Sometimes used, but
Ignores growth Not based on cash flow
MeanMean-variance CAPM
Ke = Rf + βs,m[E(Rm) - Rf] Where
Cost of Debt
Cost of debt is the interest rate the company would be required to pay on new debt, adjusted upward for flotation costs Yield to maturity on bonds frequently measures the marginal cost of debt
Marginal Cost Concept
The marginal cost of capital is the rate of return that must be earned on new capital to satisfy investors The marginal cost of capital is the weighted average cost of capital that must be earned on new investments The marginal cost of capital is the change in the amount needed to satisfy investors, divided by the amount of new capital raised
Ch 6 Cost of Capital(公司理财(哈工大深圳研究生院,王苏生)
HIT SGS
RISK AND RETURN
Shareholders' required rate of return, rE , compensates for • Time value of money - riskless rate of return, rf • Risk - they require a risk premium depending on the risk level
HIT SGS
COST OF DEBT, WEIGHTS AND TAX RATE
The cost of debt capital, rD is the current Yield to Maturity, or YTM, on the bond - it is the IRR on the company's bonds Note that it is the current IRR, not historical coupon rates. Often estimated as a spread over T-bond rates
Learn how to incorporate risk in DCF valuations
HIT SGS
DEFINITION OF COST OF CAPITAL
The opportunity cost of capital is expected return that the owners of the firm could have earned if they invested in other projects with similar risk • It recognizes the foregone opportunities when investing in the project as opposed to other projects with similar risk
文献阅读MM定理The cost of capital, corporation finance and the theory of investment
将
带入
S1
S0
*I k
I
因此，当且仅当
时，股票市值增加，
股东才会同意新的投资项目。
举例说明
为了进一步阐明其中含义，假定市场债券利率为4%， 资本化市场利率为10%，预期收入为1000的一项投资。若 采取纯股权融资的话，按照命题一，公司股票的市场价值 为10000。
假定管理层发现一项新的投资机会，投资收益8%。 若采用债券融资的话，期望收益是利率的两倍。如果管理 者以4%的利息借入100，总的期望收益变成了1008，企 业的是市场价值成为10080。但是，如果偿还100的债务 的话，企业的股票市场价值成为9980。
分析方法的革命
1、采用无套利分析。
2、学者普遍认为，不懂得无套利均衡分析，就是不 懂得现代金融学的基本方法论，当然，也就不懂得金 融工程的基本方法论。
3、所提的假设导致对融资环境的全面考虑，如税收、 代理问题、交易成本和破产成本。
I证券估价、杠杆和资本成本
A不确定收益的估价模型
所有的股票公司属于同一风险等级k
因为V2>V1,所以Y1>Y2，
另一种可能，V2<V1
进一步假设有一个投资者持有公司1中s1美元的股票，占 总股票S1的a，获得的投资收益
Y1
s1 S1
X
X
假设他将投资换成价值也为s1的另一种组合即公司2的 s2
的股票和d的债务，比例s2和d分别为s2
S2 V2
s1
d
D2 V2
D.命题Ⅰ和命题Ⅱ与现在的学说的关系
1、传统的观点：
当 ik* r 企业的市场价值随债务升高；
命题3
公司金融双语期末复习资料
公司金融双语期末复习资料一、判断题二、计算题(4—5题）三、名词解释1。
Corporate finance（公司金融)Corporate finance is the study of the answers to the following questions:What long-term investments should you take on？Where will you get the long-term financing to pay for your investment？How will you manage your everyday financial activities？企业融资是下列问题的答案的研究：把你要什么样的长期投资?你将在哪里获得长期的资金支付你的投资？你如何管理你的日常财务活动?2.financial manager（财务经理）anyone who deals with investment and/or financing decisions for a business.The CFO, controller，treasurer凡涉及一个企业的投资和融资决策.首席财务官，控制器,司库3。
maturity（到期日）The direction of bond investors borrowing principal or other debt to date，but also stop interest payment day.借贷方向投资者偿付债券本金或其他债务的日期,也是停止支付利息的日子.4。
present value（现值)Present value （Present value）, index funds reduced to the base year，also known as the discounted present values，also called on the value of the future cash flow，refers to an appropriate discount rate to discount the value of. Refers to assets in accordance with the is expected to generate from its continuing use and ultimate disposal of the future discounted net cash inflow amount，in accordance with the expected liabilities within the time limit to future net cash outflow discount the amount of reimbursement。
Nike--Cost-of-Capital-资本成本分析案例
1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not?1.1 The definition of WACCWeighted average cost of capital(WACC), is a weighted-computational method of analyzing the cost of capital based on the whole capital structure of a firm. The result of WACC is the rate a firm use to monitor the application of the current assets because it represents the return the firm MUST get. For example this rate could be used as the discount rate of evaluating an investment, and maintaining the price of firm’s stock.1.2 Analysis of Johanna Cohen’s calculationWe analyzed the process of Johanna Cohen’s calculation, and found some flaws we believe caused computational mistakes.i. When using the WACC method, the book value of bond is available as themarket value since bonds are not quite active in the market, but the book value of equity isn’t. Instead of Johanna’s using equity’s book value, we should multiply the current price of Nike’s stock price by the numbers of shares outstanding.ii. When calculating the YTM of the firm’s bond, Johanna only used the interest expense of the year divided by the average debt balance, which fully ignored the discounted cash flow of the cost of debt.2. If you do not agree with Cohen’s analysis, calculate your own WACC for Nike and be prepared to justify your assumptions. Combining the analysis above, we now give our own WACC calculation as following: 2.1 The value of debt(based on EXIHIBIT 3).Since the book value of debt may represent the market value, we merely need to sum up the values of Long-term debt, Notes payable, and the Current portion of long-term debt:435.9+855.3+5.4=$1,296.6 m2.2 The cost of debt (based on EXIHIBIT 4):PV: -95.6FV: 100n: 40Pmt: 6.75/2= 3.375 (as it pays semiannually)So, we get the YTM is i*2=3.58*2=7.16%2.3 The value of equity (based on EXIHIBIT 1&4):Price of stock * numbers of shares outstanding= 42.09*273.3=$11,503.2m2.4 The cost of equity (based on EXIHIBIT 4):E(R i) = R f +【E(R m) - R f】* βiBecause the government bond yield is 5.74%, Geometrical historical risk premium is 5.90%, and the average historical βof Nike is 0.80, then we get:E(R i)= 5.74%+5.90%* 0.8=10.46%2.5 Weights of each security (based on 2.1&2.3)Weight of debt=1,296.6/(1,296.6+11,503.2)=10.13%Weight of equity=11427.44/(1,296.6+11,503.2)=89.87%2.6 Cost of capital by WACC method (based above):Cost of capital = Weight of debt * Cost of debt * (1 – Tax rate) + Weight of equity * Cost of equity = 10.13% * 7.16%* (1-0.38) + 89.87% * 10.46% = 9.85%3. Calculate the costs of equity using CAPM, the dividend discount model, and the earnings capitalization ratio. What are the advantages and disadvantages of each method?3.1 Calculating the costs of equity by CAPM, and its advantages & disadvantagesi. Calculation:According to 2.4, we have already got the result of CAPM, which is 10.46%.ii. AdvantagesFirst, because CAPM is a theory based on the whole market, it obviously includes the effects between the market as the integrity and each individual stock. Second, with the counterbalance among each stock in the entire market, CAPM only needs the consideration of systematic risk, which much simplifies the calculation. Third, CAPM also bypasses the specific values of future cash flow because the equation is actually the relation between systematic risk and return rate, which is also another simplification of calculating. Fourth, merely depending on the systematic risk, CAPM could offer the investors a reliable discounting rate to assess the value of a certain investment.iii. Disadvantages:First, involving the counterbalance among the entire market, CAPM acquiesces an effective, active and healthy market environment. Second, comparing the consideration of market risk, CAPM may omit the subtle risk differences among each single firm. Third, the crucial systematic risk, the beta coefficient, is obviously hard to calculate.3.2 Calculating the costs of equity by DDM, and its advantages & disadvantagesi. Calculation (based on EXIHIBIT 4)::Based on the dividend discount model, P0 = D0 * (1+g) / (k – g), then we get the return rate (the cost of equity) k = D0 * (1+g) / P0 + g = 0.48 * (1 + 0.055) /42.09 + 0.055 = 6.7%ii. AdvantagesFirst, DDM fully considers the time value of consistent cash flow of an investment. Second, it is pretty easy to get the necessary historical data. Third DDM is flexible enough for the adjustment of any future situation. Fourth, once the growth pattern is confirmed, it is very straightforward to get the discount rate of assessing an investment.iii. DisadvantagesFirst, without enough consideration of risk cost, DDM may underestimate theequity cost. Second, all of the data is based on historical record, so the resultis not reliable considering of the future situations. Third, with thepredetermined growth rate, it is obviously practical for the stock investors toestimate the possible profit, but may mislead the stock issuing firm from abetter budgeting decision to a comparatively unsubstantial investment.3.3 Calculating the costs of equity by the earnings capitalization ratio, and itsadvantages & disadvantagesi. Calculation (based on EXIHIBIT 1&4)According to the earnings capitalization model, we have cost of equity = E1 / P0 = 2.16 / 42.09 = 5.13%ii. AdvantagesFirst, it’s very e asy to calculate and understand. Second, it’s easy to get the necessary accounting dataiii. DisadvantagesWithout any consideration of the risk and the growth of the firm, it doesn’t reflect the true value of an investment or the cost of the budgeting at all.4. What should Kimi Ford recommend regarding an investment inNike?According to EXIHIBIT 2, the market’s forecasting sensitivity of equi ty value of Nike is 11.17%. But based on our own analysis by WACC, we believe the discount rate of Nike is around 9.85%. That means the market underestimated the value of Nike. So we recommend the Northpoint to purchase the stock of Nike.。
√Lecture 19：资本成本
• There are two major methods for determining the cost of equity
– Dividend growth model – SML, or CAPM
许志 西南财经大学金融学院
The Dividend Growth Model Approach
许志 西南财经大学金融学院
Required Return
• The required return is the same as the appropriate discount rate and is based on the risk of the cash flows • We need to know the required return for an investment before we can compute the NPV and make a decision about whether or not to take the investment • We need to earn at least the required return to compensate our investors for the financing they have provided
Why Cost of Capital Is Important
• We know that the return earned on assets depends on the risk of those assets • The return to an investor is the same as the cost to the company • Our cost of capital provides us with an indication of how the market views the risk of our assets • Knowing our cost of capital can also help us determine our required return for capital budgeting projects
Cost of capital
ቤተ መጻሕፍቲ ባይዱ
Here : P : represent the usable fund from borrowing; f : represent rate of borrowing fees; I : represent the interest paid at period t;
t
M : represent principle of the borrowing that will be paid at end; R : represent cost of borrowed fund
Method 3： Simple way: (if interest is paid annually and principle payback at the end of the period)
Annualinterest Rd 1 T） （ P 1 f） （
Example 1. ABC company issued 2000 30-years bonds with 12% of annual coupon rate 5 years ago. Presently, the market price of the bond is $1182. Please consider cost of the bond if issuing cost is 3% of bond fund. Assume the company’s tax rate is 40%
The Cost of Capital (资本成本)
Main Concepts： Sources of capital Component Cost of Capital (个别资本成本) WACC (Weighted Average Cost of Capital) Marginal Cost of Capital (边际资本成本)
文献阅读MM定理The cost of capital, corporation finance and the theory of investment
现代资本结构理论模型－－MM理论
诺贝尔经济学奖获得者莫迪利亚尼和米勒（Franco Modigliani和Mertor Miller）在1958年6月《美国经济评论》 第48卷提出了公司资本结构与其市场价值的“无关性定 理”(Irrelevence Theorem)，简称MM理论，由此资本结构 进入了主流经济学的研究视野。MM理论除了包括莫迪格利 安尼和米勒的最为著名的三个定理外，还有1961年10月他 们在《商业学刊》第34卷发表的另一篇经典文章“股利政 策，增长和股票估价”中所提出的一项推论和1963年6月在 《美国经济评论》第53卷所作的“企业所得税和资本成本： 一项修正”的修正结论，以及1966年6月在《美国经济评论》 第53卷刊出的“电力公用事业行业资本成本的某些估计” 一文的实证结果。
(1)在50年代与美国经济学家理查德·布伦伯格（Richard Brumderg）和艾伯特·安多（Albert Ando）共同提出了消费函 数理论中的生命周期假说。这一假说以消费者行为理论为基础， 提出人的消费是为了一生的效用最大化。
弗兰科·莫迪利安尼 （Franco Modigliani, 意大利 籍美国人 ,1918年6 月18日-2003年9月 25日）
阅读文献：
The cost of capital, corporation finance and the theory of investment
内容安排： 一、作者简介 二、资本结构理论的简单介绍 三、文章介绍
莫迪利安尼在经济学上最主要的贡献：1985年因储蓄和金融 市场的开拓性研究获诺贝尔经济学奖。
(2)与美国经济学家默顿·米勒（Merton Miller）共同提出 了公司资本成本定理，即“莫迪利安尼——米勒定理”。这一 定理提出了在不确定条件下分析资本结构和资本成本之间关系 的新见解，并在此基础上发展了投资决策理论。
cost of equity capital计算公式
cost of equity capital计算公式成本权益资本计算公式在企业融资中，成本权益资本计算是一项关键任务，它能够帮助企业估计使用股权融资所需支付的成本。
成本权益资本是为了筹集资金而吸引投资者所需支付的回报率。
本文将介绍成本权益资本计算的公式及其应用。
一、成本权益资本的定义与意义成本权益资本（Cost of Equity Capital）是指资本市场上股权融资所需支付的投资回报率。
也就是说，企业需要支付给股东的回报率。
成本权益资本是企业对外融资的一项重要指标，它能够影响企业融资成本、投资项目的策略选择以及股权价值的评估，因此，正确计算成本权益资本对企业具有重要意义。
二、成本权益资本的计算公式成本权益资本可以通过不同的方法进行计算，最常用的方法是通过资本资产定价模型（Capital Asset Pricing Model，简称CAPM）来计算。
CAPM模型的公式为：Re = Rf + β × (Rm - Rf)其中，Re为成本权益资本；Rf为无风险利率，可以选择国债收益率等；β为股票的市场风险系数，代表个股与市场整体风险之间的关系；Rm为市场整体收益率。
三、成本权益资本计算公式的应用与意义1. 融资成本评估：成本权益资本是企业融资的重要依据之一。
通过正确计算成本权益资本，企业可以估计到吸引投资者的投资回报率，从而决策采取合适的融资方式。
2. 投资策略选择：企业在做投资决策时，经常面临多个项目的选择。
通过计算不同项目的成本权益资本，企业可以对项目进行评估，选择具有合适成本回报率的项目，以最大化股东权益。
3. 股权价值评估：成本权益资本也是估计股权价值的重要指标。
通过计算成本权益资本，可以对企业股权的价值进行评估，有助于投资者进行投资决策。
四、总结成本权益资本计算公式通过CAPM模型提供了一种简单而有效的方法，能够帮助企业估计成本权益资本。
正确计算成本权益资本能够对企业的融资决策、投资项目选择以及股权价值评估等方面产生重要的影响。
Nike Inc., Cost of Capital案例原文
Graduate School of Business Administration University Version 2.0 of VirginiaUVA-F-1353 Version 2.0Nike, Inc.: Cost of Capital On July 5, 2001, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual fund management firm, pored over analyst write-ups of Nike, Inc., the athletic shoe manufacturer. Nike’s share price had declined significantly from the start of the year. Kimi was considering buying some shares for the fund she managed, the NorthPoint Large-Cap Fund, which invested mostly in Fortune 500 companies with an emphasis on value investing. Its top holdings included ExxonMobil, General Motors, McDonald’s, 3M and other large-cap, generally old-economy stocks. While the stock market declined over the last 18 months, NorthPoint Large-Cap had performed extremely well. In 2000, the fund earned a return of 20.7 percent even as the S&P 500 fell 10.1 percent. The fund’s year-to-date returns at the end of June, 2001 stood at 6.4 percent versus the S&P 500’s minus 7.3 percent. Only a week ago, on June 28, 2001, Nike held an analysts’ meeting to disclose its fiscal year 2001 results1. However, the meeting had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, Nike’s revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike’s market share in U.S. athletic shoes had fallen from 48 percent in 1997 to 42 percent in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue. At the meeting, management revealed plans to address both top-line growth and operating performance. To boost revenue, the company would develop more athletic shoe products in the mid-priced segment3 – a segment that it had overlooked in recent years. Nike also planned to push its apparel line, which, under the recent leadership of industry veteran Mindy Grossman4 had performed extremely well. On the cost side, Nike would exert more effort on expense control. Finally, company executives reiterated their long-term revenue growth targets of 8-10 percent, and earnings growth targets of above 15 percent.Nike’s fiscal year ended in May. Robson, Douglas, “Just Do…Something: Nike’s insularity and foot-dragging have it running in place”, Business Week, July 2, 2001 3 Sneakers in this segment sold for $70-$90 a pair. 4 Mindy Grossman joined Nike in September 2000. She was the former president and chief executive of Jones Apparel Group's Polo Jeans division.2 1This case was prepared from publicly available information by Jessica Chan under the supervision of Professor Robert F. Bruner. The financial support of the Batten Institute is gratefully acknowledged. This case was written as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Copyright 2001 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to dardencases@. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means— electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School Foundation. Rev. 10/02.-2-UVA-F-1353Analyst reactions were mixed. Some thought the financial targets to be too aggressive; others saw significant growth opportunities in apparel and in Nike’s international businesses. Kimi Ford read all the analyst reports that she could find about the June 28 meeting, but the reports gave her no clear guidance: a Lehman Brothers report recommended a ‘Strong Buy’ while UBS Warburg and CSFB analysts expressed misgivings about the company and recommended a ‘Hold’. Kimi decided instead to develop her own discounted-cash-flow forecast to come to a clearer conclusion. Her forecast showed that at a discount rate of 12 percent, Nike was overvalued at its current share price of $42.09 (see Exhibit 2). However, she had done a quick sensitivity analysis that revealed Nike was undervalued at discount rates below 11.2 percent. Since she was about to go into a meeting, she requested her new assistant, Joanna Cohen, to estimate Nike’s cost of capital. Joanna immediately gathered all the data she thought she might need (Exhibits 1 through 4) and set out to work on her analysis. At the end of the day, she submitted her cost of capital estimate and a memo (Exhibit 5) explaining her assumptions to Ms. Ford.-3-UVA-F-1353Exhibit 1 Nike, Inc.: Cost of Capital Consolidated Income StatementsYear Ended May 31 (In millions except per share data) Revenues Cost of goods sold Gross profit Selling and administrative Operating income Interest expense Other expense, net Restructuring charge, net Income before income taxes Income taxes Net income Diluted earnings per common share Average shares outstanding (diluted) Growth (%) Revenue Operating income Net income Margins (%) Gross margin Operating margin Net margin Effective tax rate (%)* 1995 1996 1997 1998 1999 2000 20014,760.8 2,865.3 1,895.6 1,209.8 685.8 24.2 11.7 649.9 250.2 399.7 1.36 294.06,470.6 3,906.7 2,563.9 1,588.6 975.3 39.5 36.7 899.1 345.9 553.2 1.88 293.69,186.5 5,503.0 3,683.5 2,303.7 1,379.8 52.3 32.3 1,295.2 499.4 795.8 2.68 297.09,553.1 6,065.5 3,487.6 2,623.8 863.8 60.0 20.9 129.9 653.0 253.4 399.6 1.35 296.08,776.9 5,493.5 3,283.4 2,426.6 856.8 44.1 21.5 45.1 746.1 294.7 451.4 1.57 287.58,995.1 5,403.8 3,591.3 2,606.4 984.9 45.0 23.2 (2.5) 919.2 340.1 579.1 2.07 279.89,488.8 5,784.9 3,703.9 2,689.7 1,014.2 58.7 34.1 921.4 331.7 589.7 2.16 273.335.9 42.2 38.442.0 41.5 43.94.0 (37.4) (49.8)(8.1) (0.8) 13.02.5 15.0 28.35.5 3.0 1.839.6 15.1 8.5 38.540.1 15.0 8.7 38.636.5 9.0 4.2 38.837.4 9.8 5.1 39.539.9 10.9 6.4 37.039.0 10.7 6.2 36.0*The U.S. statutory tax rate was 35%. The state tax varied yearly from 2.5% to 3.5%. Source: Company's 10-K SEC filing, UBS Warburg-4Exhibit 2 Nike, Inc.: Cost of Capital Discounted Cash Flow Analysis2002 Assumptions: Revenue growth (%) COGS/Sales (%) S&A/Sales (%) Tax rate (%) Current assets/Sales (%) Current liabilities/Sales (%) Yearly depreciation and capex equal each other. Cost of capital (%) Terminal value growth rate (%) Discounted Cash Flow Operating income Taxes NOPAT Capex, net of depreciation Change in NWC Free cash flow Terminal value Total flows Present value of flows Enterprise value Less: current outstanding debt Equity value Current shares outstanding Equity value per share at 12% Sensitivity of equity value to discount rate: Discount rate 8.00% 8.50% 9.00% 9.50% 10.00% 10.50% 11.00% 11.17% 11.50% 12.00% 2003 2004 2005 2006 2007 2008 2009UVA-F-1353201020117.0 60.0 28.0 38.0 38.0 11.5 12.0 3.06.5 60.0 27.5 38.0 38.0 11.56.5 59.5 27.0 38.0 38.0 11.56.5 59.5 26.5 38.0 38.0 11.56.0 59.0 26.0 38.0 38.0 11.56.0 59.0 25.5 38.0 38.0 11.56.0 58.5 25.0 38.0 38.0 11.56.0 58.5 25.0 38.0 38.0 11.56.0 58.0 25.0 38.0 38.0 11.56.0 58.0 25.0 38.0 38.0 11.51,218.4 463.0 755.4 8.8 764.1 764.1 682.3 11,415.7 1,296.6 10,119.1 271.5 $ 37.271,351.6 513.6 838.0 (174.9) 663.1 663.1 528.61,554.6 590.8 963.9 (186.3) 777.6 777.6 553.51,717.0 652.5 1,064.5 (198.4) 866.2 866.2 550.51,950.0 741.0 1,209.0 (195.0) 1,014.0 1,014.0 575.42,135.9 811.7 1,324.3 (206.7) 1,117.6 1,117.6 566.22,410.2 915.9 1,494.3 (219.1) 1,275.2 1,275.2 576.82,554.8 970.8 1,584.0 (232.3) 1,351.7 1,351.7 545.92,790.1 1,060.2 1,729.9 (246.2) 1,483.7 1,483.7 535.02,957.5 1,123.9 1,833.7 (261.0) 1,572.7 17,998.7 19,571.5 6,301.5Current share price:$42.09Note: Terminal value is estimated using the constant growth model: Equity value $ 75.80 67.85 61.25 55.68 50.92 46.81 43.22 42.09 40.07 37.27 TV = FCF10 * (1 + Terminal value growth rate) WACC - g TV = $1,572.7 * (1.03) 12% - 3%-5Exhibit 3 Nike, Inc.: Cost of Capital Consolidated Balance SheetsMay 31, As of (In millions) Assets Current Assets: Cash and equivalents Accounts receivable Inventories Deferred income taxes Prepaid expenses Total current assets Property, plant and equipment, net Identifiable intangible assets and goodwill, net Deferred income taxes and other assets Total assets Liabilities and shareholders' equity Current Liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term debt Deferred income taxes and other liabilities Redeemable preferred stock Shareholders' equity: Common stock, par Capital in excess of stated value Unearned stock compensation Accumulated other comprehensive income Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 2000 2001UVA-F-1353$254.3 1,569.4 1,446.0 111.5 215.2 3,596.4$304.0 1,621.4 1,424.1 113.3 162.5 3,625.31,583.4 410.9 266.2 $ 5,856.91,618.8 397.3 178.2 $ 5,819.6$50.1 924.2 543.8 621.9 2,140.0 470.3 110.3 0.3$5.4 855.3 432.0 472.1 21.9 1,786.7 435.9 102.2 0.32.8 369.0 (11.7) (111.1) 2,887.0 3,136.0 $ 5,856.92.8 459.4 (9.9) (152.1) 3,194.3 3,494.5 $ 5,819.6Source: Company 10-K SEC filing.-6-UVA-F-1353Exhibit 4 Nike, Inc.: Cost of Capital Capital Market and Financial Information On or Around July 5, 2001Current yields on U.S. Treasuries 3-month 6-month 1-year 5-year 10-year 20-year 3.59% 3.59% 3.59% 4.88% 5.39% 5.74%Nike Share Price Performance Relative to S&P500: January 2000 to July 5, 20011.3 1.2 1.1 1.0 0.9 0.8 0.7 0.6 0.5 0.4 Feb-00 Aug-00 May-00 Sep-00 Feb-01 May-01 Nov-00 Jan-00 Jun-00 Jan-01 Jun-01 Jul-00 Mar-00 Apr-00 Mar-01 Dec-00 Oct-00 Apr-01 Jul-01Historical Equity Risk Premiums (1926-1999) Geometric mean 5.90% Arithmetic mean 7.50% Current Yield on Publicly Traded Nike Debt* Coupon 6.75% paid semi-annually Issued 07/15/96 Maturity 07/15/21 Current Price $ 95.60 Nike Historic Betas 1996 1997 1998 1999 2000 YTD 06/30/00 AverageNikeS&P 5000.98 0.84 0.84 0.63 0.83 0.69 0.80Nike share price on July 5, 2001: Dividend History and Forecasts Paymt Dates 31-Mar 30-Jun 1997 0.10 0.10 1998 0.12 0.12 1999 0.12 0.12 2000 0.12 0.12 2001 0.12 0.12$42.0930-Sep 0.10 0.12 0.12 0.1231-Dec 0.10 0.12 0.12 0.12Total 0.40 0.48 0.48 0.48Consensus EPS estimates: FY 2002 FY 2003 $ 2.32 $ 2.67Value Line Forecast of Dividend Growth from '98-00 to '04-'06: 5.50%* Data have been modified for teaching purposes. Sources of data: Bloomberg Financial Services, Ibbotson Associates Yearbook 1999, Value Line Investment Survey, IBES-7Exhibit 5 Nike, Inc.: Cost of Capital Joanna’s Analysis TO: FROM: DATE: SUBJECT: Kimi Ford Joanna Cohen July 6, 2001 Nike’s Cost of CapitalUVA-F-1353Based on the following assumptions, my estimate of Nike’s cost of capital is 8.4 percent: I. Single or Multiple Costs of Capital? The first question I considered was whether to use single or multiple costs of capital given that Nike has multiple business segments. Aside from footwear, which makes up 62 percent of revenue, Nike also sells apparel (30 percent of revenue) that complement its footwear products. In addition, Nike sells sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. Equipment products account for 3.6 percent of revenue. Finally, Nike also sells some non-Nike branded products such as Cole-Haan dress and casual footwear, and ice skates, skate blades, hockey sticks, hockey jerseys and other products under the Bauer trademark. Non-Nike brands account for 4.5 percent of revenue. I asked myself whether Nike’s business segments had different enough risks from each other to warrant different costs of capital. Were their profiles really different? I concluded that it was only the Cole-Haan line that was somewhat different; the rest were all sports-related businesses. However, since Cole-Haan makes up only a tiny fraction of revenues, I did not think it necessary to compute a separate cost of capital. As for the apparel and footwear lines, they are sold through the same marketing and distribution channels and are often marketed in "collections" of similar design. I believe they face the same risk factors, as such, I decided to compute only one cost of capital for the whole company. II. Methodology for Calculating the Cost of Capital: WACC Since Nike is funded with both debt and equity, I used the Weighted Average Cost of Capital (WACC) method. Based on the latest available balance sheet, debt as a proportion of total capital makes up 27.0 percent and equity accounts for 73.0 percent:-8Capital sources Book Values Debt Current portion of long-term debt $ 5.4 Notes payable 855.3 Long-term debt 435.9 $ 1,296.6 Equity III. Cost of Debt $3,494.5UVA-F-135327.0% of total capital 73.0% of total capitalMy estimate of Nike’s cost of debt is 4.3 percent. I arrived at this estimate by taking total interest expense for the year 2001 and dividing it by the company’s average debt balance.5 The rate is lower than Treasury yields but that is because Nike raised a portion of its funding needs through Japanese yen notes, which carry rates between 2.0 percent to 4.3 percent. After adjusting for tax, the cost of debt comes out to 2.7 percent. I used a tax rate of 38 percent, which I obtained by adding state taxes of 3 percent to the U.S. statutory tax rate. Historically, Nike’s state taxes have ranged from 2.5 percent to 3.5 percent. IV. Cost of Equity I estimated the cost of equity using the Capital Asset Pricing Model (CAPM). Other methods such as the Dividend Discount Model (DDM) and the Earnings Capitalization Ratio can be used to estimate the cost of equity. However, in my opinion, CAPM is the superior method. My estimate of Nike’s cost of equity is 10.5 percent. I used the current yield on 20-year Treasury bonds as my risk-free rate, and the compound average premium of the market over Treasury bonds (5.9 percent) as my risk premium. For beta I took the average of Nike’s beta from 1996 to the present. V. Putting it All Together Inputting all my assumptions into the WACC formula, my estimate of Nike’s cost of capital is 8.4 percent. WACC = Kd (1-t) * D/(D+E) + Ke * E/(D+E) = 2.7% * 27.0% + 10.5% * 73.0% = 8.4%5Debt balances as of May 31, 2000 and 2001 were $1,444.6 and $1,296.6 respectively.。
cost of capital acca 计算
cost of capital acca 计算成本资本是指企业为了筹集资金所要支付的利息和股息的成本。
ACCA考试中的成本资本题目主要涉及到成本资本的计算和应用。
本文将通过解释成本资本的概念、计算方法以及应用案例，详细说明ACCA考试中与成本资本有关的内容。
首先，我们来了解成本资本的概念。
成本资本是企业为了融资所要支付的成本，它是企业投入资本的机会成本。
成本资本通常由债务和股权的成本构成。
债务的成本是企业支付借款利息所产生的成本，而股权的成本则是企业支付股息所产生的成本。
企业需要知道自己的成本资本，以便在决策过程中对不同项目进行评估和决策。
其次，我们要了解成本资本的计算方法。
成本资本的计算可以采用权益成本法和加权平均成本法。
权益成本法是基于股权的成本计算方法，它通过计算股息和股权市场价格得出成本资本。
加权平均成本法是基于债务和股权的比例计算方法，它通过将债务和股权的成本加权平均得出成本资本。
在ACCA考试中，一般会给出具体的数据，要求学员使用特定的计算方法来计算成本资本。
最后，我们来看一下成本资本在实际案例中的应用。
成本资本的使用通常涉及到投资决策、资本预算和市场估值。
企业在做投资决策时需要比较项目的收益率与成本资本的大小，以判断该项目的可行性。
同时，在资本预算过程中，企业也需要考虑成本资本，以确定投资项目的优先次序。
另外，市场估值也需要考虑成本资本，投资者通常会使用成本资本来计算股票的内在价值。
在ACCA考试中，成本资本经常出现在资本预算和投资决策的题目中。
学员需要掌握成本资本的概念和计算方法，以便在考试中准确回答相关问题。
此外，了解成本资本的应用案例也能帮助学员更好地理解和应用这一概念。
总结起来，ACCA考试中的成本资本题目涉及到成本资本的计算和应用。
学员需要掌握成本资本的概念、计算方法和应用案例，以便在考试中准确回答问题。
通过学习和理解这些内容，学员可以更好地应对ACCA考试中关于成本资本的题目。
cost of equity capital计算公式
cost of equity capital计算公式
成本权益资本（Cost of Equity Capital）是指企业从股东那里筹集资本所需支付的回报率。
它是衡量股东对企业投资风险的要求。
下面是常用的计算成本权益资本的公式：
成本权益资本= 无风险利率+ 风险溢价
其中，无风险利率是指无风险投资所能获得的回报率，通常可以参考政府债券的收益率；风险溢价是衡量股东对承担企业特定风险所要求的额外回报。
风险溢价可以通过使用不同的方法进行估算，以下是两种常用的方法：
1. 市场风险溢价法：根据市场上相对于无风险投资的预期回报率，计算股票的预期回报率与无风险利率之间的差异。
这可以通过使用市场指数如标普500指数的历史数据来估算。
成本权益资本= 无风险利率+ beta系数* （市场回报率-无风险利率）
其中，beta系数表示股票相对于整个市场的波动性。
2. 市场价格法：根据市场上已经存在的股票价格和股息支付情况，计算预期的回报率。
成本权益资本= 股息/ 当前股票价格+ 预期
增长率
其中，股息是公司每年支付给股东的股息金额，预期增长率是指公司未来的盈利增长率。
需要注意的是，以上公式仅为常用的估算方法之一，企业在实际计算成本权益资本时，还需要考虑其他因素如行业风险、公司财务状况等。
最好咨询专业的财务顾问或使用更复杂的模型进行准确的计算。
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Modigliani and Miller
announced that for the first time they had found such a relationship. The surprise was the nature of the relationship between debt and equity: far from being a U shaped curve it was a straight line, parallel to the axis.
A family of Betas
Equity betas measure systematic business risk and financial risk Asset betas measures systematic business risk Debt betas measure default risk Asset betas are always ungeared.
A = E x
E . E +D(1-t)
Bear in Mind
When doing examination questions always assume that corporate debt is risk free and beta debt is zero unless the question specifically says it is not.
Capital structure: some practical consideration
1. measuring gearing: gearing may be measured as debt to equity or debt to total capital. It is generally agreed that market values are theoretically superior measurements but both measurements have been used in ACCA exam
Ungearing and regearing betas
This is one of the examiner’s favourite calculations and you must be confident of your ability to do it. The formula, which is given in the formula sheet, is as follows: E E + D(1-t) + D x D(1-t). E + D(1-t)
Dividend valuation model
Ke = (D1 / Pe) +g Where D1 = the next dividend due in one year D1 =D0 ( 1 + g ) Pe = ex-dividend share price g = anticipated rate of dividend growth
International Financial Management
Hale Waihona Puke Cost of Capital
Text Book Ch17
The Cost of Capital Its relationship with CAPM: One component of WACC Its application: Used for calculation of WACC
Cost of capital(continued)
Estimation of g Assume same rate from present to the past G = nlatest div/earliest div -1 2) CAPM: Rj = Rf + (Rm-Rf) =Ke
Capital structure: some practical consideration (continued)
2.Preference shares: legally preference share are equity but have features of debt. Note: In calculation, the examiner invariably treats preference shares as debt
Cost of capital
Definition: the rate of return existing and potential investors require in order to persuade them to invest in company’s security. The cost of equity (ke) 1) the dividend valuation model Ke = d1/pe + g {pe=d1/(ke-g)} where d1=d0(1+g)
This leads MM to conclude
that there was no such thing as an optimal capital structure, that any combination of debt and equity is as good as any other and it is not possible for managers to increase shareholder wealth through it's financing decisions
The basic form of the model
Pe = D1 / ( 1 + i)+D2 / (1+i)2+D3/(1+i) 3…. Case one When dividends are constant Case two when dividends are expected to grow at a rate of g Estimating "g" Extrapolation of past growth.
Weighted average cost of capital (WACC)
2.The “bit more” accrues to the ordinary share holders 3.If the project has +NPV when discounted at WACC, it generates C/F which allows us to pay to ordinary shareholders a return in excess of that they require. 4.In a perfect capital market, shareholder wealth increases as a result.
A = E x
Ungearing and regearing betas
If corporate debt is risk free beta debt is zero and the second part of the equation disappears leaving the rather simpler version shown below:
Weighted average cost of capital
Found by multiplying the costs of the various sources of finance used by the company by their proportion of the total MARKET value of the company.
Weighted average cost of capital(WACC)
1.
Ko = Ke(E/E+D)+Kd(D/E+D) The rational for use of WACC If a project has a +NPV, when discounted at WACC, it generates c/f which allows to pay to all the providers of capital, a rate of return which is equal to that they require and then “bit more”
Capital structure theory
What happens to the WACC when the company changes its capital structure. MM theory In 1958 two American academics MM discovered capital structure irrelevancy – debt or equity financing makes no difference.
Dividend irrelevant theory
Retained earnings – retention policy versus dividend policy are opposite sides of one coin Can managers increase the value by designing optimal dividend policy?
A family of Betas
Company beta can be found in the beta book published by risk management service of LBS Company betas are equity betas Industry betas are asset betas Equity betas may be geared or ungeared, depends on whether the company is geared or not.