Public Finance-Harvey Rosen-Chapter 10(1)
《Public Finance》双语课程教学大纲
《Public Finance》(双语)课程教学大纲（2003年制订，2006年修订）课程编号：110110中文名：公共财政课程类别：专业主干课前置课：西方经济学、财政学、大学英语后置课：学分：3学分课时：51课时主讲教师：任巧玲、郭晔、毛翠英等选定教材：Harvey S. Rosen: Public Finance, New York: McGraw-Hill, 2002（节选）.课程概述：本课程为财政学专业的专业主干课，本大纲适用于财政学本科专业。
当前，我国的公共财政体制正在进一步地发展和完善，在这个过程中，充分了解和有效借鉴西方市场经济国家财政领域的基础理论和实践状况十分必要。
而在财政学专业课程体系中设置相应课程，正体现出与这一现实要求的协调一致。
本课程主要内容包括：财政学的定义及其主要思想；公共品的定义及其提供等问题；外部性的本质及其影响和对策；公共选择的各种机制的讨论与评估；赤字融资及其相关问题等。
教学目的：本课程的教学目的在于使学生在已有知识基础上，重点掌握西方财政学体系中的基本理论观点，也可以了解到西方国家（主要是美国）财政运行的一般情况；使学生能够在不同的具体现实条件中思考运用所学到的相应观点和知识；同时，使学生掌握财政学方面术语的英语表达方式。
教学方法：本课程作为一门双语教学课程，使用的是英文教材，课堂教学过程中的内容讲解采用中英文结合方式，英语使用程度需要参考学生的整体接受程度。
为强化相关理论知识及其实践运用，本课程根据教学内容进程及其侧重点设置了讨论课时段。
同时，本课程大量借助多媒体手段使讲解更加清楚。
各章教学要求及教学要点Chapter 1 Introduction课时分配：3课时教学要求：通过本章的学习使学生掌握财政学的内涵及其主要功能，并以此为基础把握两种主要的财政思想。
本章重点为财政学的基本涵义。
教学内容：1.1Introduction of Public FinancePublic finance, also known as public sector economics or public economics, focuses on the taxing and spending activities of government and their influence on the allocation of resources and distribution of income.1.2 Public Finance and Ideology1. Organic view of governmentSociety is conceived of as a natural organism．Each individual is a part of this organism，and the government can be thought of as its heart. The individual has significance only as part of the community，and the good of the individual is defined with respect to the good of the whole. Thus，the community is stressed above the individual.2. Mechanistic view of governmentGovernment is not an organic part of society. Rather, it is a contrivance created by individuals to better achieve their individual goals．The individual rather than the group is at center stage．思考题：1. How is public finance defined?2. What are the ideological views concerning the relationship between the individual and the state?Chapter 2 Public Goods课时分配：12课时教学要求：通过本章学习使学生掌握公共品的界定和内涵，并以此为基础把握公共品的有效提供及其生产方面的基本观点。
清华大学MBA课程表
MBA课表学位课（DegreeCourses）60510722英语（第一外国语）English(FirstForeignLanguage) 70510013组织行为学OrganizationalBehavior70510133管理经济学（微观经济学）ManagerialEconomics 〖Microeconomics〗Robert Pindyck 清华大学出版社出版影印１９９７〖微观经济学〗平狄克著张军等译人民大学出版社出版1997)【管理经济学】陈章武编著清华大学出版社出版1996.2.〖西方经济学〗黎诣远主编高等教育出版社1999年7月70510213社会主义经济理论与实践SocialistEconomicTheoryandPractice 70510591管理导论IntroductiontoManagement70510633管理沟通ManagerialCommunication80510193会计学Accounting80511483运营管理OperationsManagement80511493战略管理StrategicManagement80511503营销管理Marketing[营销管理纪实版]格斯勒主编第10版菲利普•科特勒的《营销管理—分析、计划、执行和控制》80511524数据、模型与决策Data,ModelsandDecisions80511533公司理财CorporateFinance80511602商法BusinessLaw80512453宏观经济与政策环境MacroeconomicsandPolicyEnvironment选修课（electives）市场营销类课程号课程名称CourseTitle80510262销售管理SalesManagement80510532网络营销Cybermarketing80510542国际市场营销InternationalMarketing80510862消费行为学ConsumerBehavior80510872营销研究MarketingResearch80510882广告管理学AdvertisingManagement80511792战略营销StrategicMarketing80511822服务营销ServiceMarketing80511992渠道管理学ChannelManagement80512432市场营销模拟MarketingSimulation80512472整合营销传播IntegratedMarketingCommunication(IMC)金融与财务管理类课程号课程名称CourseTitle70510243国际金融InternationalFinance80510112商业银行管理CommercialBankManagement80510122投资银行业务InvestmentBankOperation80510312投资学TheoryofInvestment亚当.史密斯的《金钱游戏》希尔《像大亨般思考》墨基尔《漫步华尔街》罗威斯坦《巴菲特：美国资本家的特质》林区《征服股海》索罗斯《超越指数》施伯伦《专业投机原理》《股市大亨/新股市大亨》《金融怪杰》《论凯因斯》《股票作手回忆录》葛拉汉《智慧型股票投资人》费雪《非常潜力股》甘氏《华尔街浮沉二十五载》《股价趋势》伯恩斯坦《与天为敌》《战胜道琼斯》《放空巧术》《统计会说谎》高伯瑞《1929股市大崩盘》《混乱中的困惑》《异常大众妄想与群体疯狂》来源：(/s/blog_44c2e3510100f7vb.html) - 清华MBA管理课程课表_求索_新浪博客80510342国际贸易InternationalTrade董瑾主编：《国际贸易理论与实务（修订版）》，北京理工大学出版社，2001年。
南京航空航天大学考研复试参考书目
复试科目:592 公共管理综合
时间：2007-2， ISBN：9787301115244 1、《通信原理（第五版）》樊昌信编，国防工业出版社，2001 年 5 月。 2、《现代电子技术基础（模拟部分）》，王成华、王友仁、胡志忠编，北 京航空航天大学出版社，2005 年；《现代电子技术基础（模拟部分）解题 指南》，王成华、邵杰编，北京航空航天大学出版社，2007 年 3、谢处方主编《电磁场与电磁波》第四版 高等教育出版社 2006 年;陈抗生
20%)，应用光学和物理光学参考书都是《光学教程（第 4 版）》 1、范爱军，国际贸易学（第三版），北京：科学出版社，2009。 2、胡庆康，现代货币银行学教程，上海：复旦大学出版社，2010。
复试科目:593 经济学综合
3、刘思峰等，计量经济学，南京：东南大学出版社，2006。 1.《应用统计学》（第二版）刘思峰等，高等教育出版社，2011 年。 2.《管理学原理》陈传明,周小虎，机械工业出版社,2007 第一版; 《企业管理学》张卓等,科学出版社,2010 年第一版. 《管理学》张卓等,科学出版社,2011 年第一版.
复试科目:545 信息与通信工程专 业综合
主编《电磁场与电磁波》，高等教育出版社,2003 年,第一版；余恒清主编 《电磁场与电磁波解题指南》，国防工业出版社,2001 年,第一版。 1）微型机计算机原理及应用： 《80X86/Pentium 微型计算机原理及应用》，吴宁 等主编 ，电子工业出版 社 2）模拟电子技术： 《模拟电子技术基础教程》，王友仁主编，科学出版社 3）数字信号处理：
复试科目 581 物理学综合
物理学综合 (固体物理 50%+光学 30%+原子物理 20%) 《单片机基础》李广弟编，北京航空航天大学出版社；（第三版） 《光学教程（第 4 版）》，姚启钧原著，高等教育出版社 备注：光学工程综合中(微机原理及应用 50%+应合
Public Finance-Harvey Rosen-Chapter 18
18-15
Tax-Preferred Savings Accounts
Types of tax-preferred savings accounts and how they work
Are contributions to these accounts new saving? Administrative details and effect on saving
18-23
A
M I0
Q
18-14 Present consumption (c0)
Some Additional Considerations
Real net rate of return
Many assets Private saving versus social saving Validity of life-cycle model Empirical evidence: the effect of taxation on saving
Q
Saving before tax
c0t c0*
I0
18-13 Present consumption (c0)
Nondeductible Interest Payments and Taxable Interest Receipts
Future consumption c1
N
c1* c1 t I1 P After-tax budget line ІSlopeІ = 1 + (1-t)r
t1
t2
tA
t3
Tax rate
18-9
Debate Over the Laffer Curve
哈维罗森财政学全英笔记Chapter1
Chapter One IntroductionThis book is about the taxing and spending activities of government, a subject usually called public finance.This term is something of a misnomer, because the fundamental issues are not financial (that is, relating to money). Rather, the key problems relate to the use of real resources. For this reason, some authors prefer the label public sector economics or simply public economics.We focus on the microeconomic function of government- the way government affects the allocation of resources and the distribution of income.This book follows tradition by focusing on governmental spending and revenue-raising activities.Public Finance and IdeologyOpinions on how government should function in the economic sphere are influenced by ideological views concerning the relationship between the individual and the state. Political philosophers have distinguished two major approaches.1. Organic View of GovernmentSociety is conceived of as a natural organism. Each individual is a part of this organism, and the government can be thought of as its heart. The individual has significance only as part of the community, and the good of the individual is defined with respect to the good of the whole. Thus, the community is stressed above the individual.The goals of the society are set by the state, which attempts to lead society toward their realization. The choice of goals differs considerably.Because societal goals can differ, a crucial question is how they are to be selected. Proponents of the organic view usually argue that certain goals are natural for the societal organism.2. Mechanistic View of GovernmentGovernment is not an organic part of society. Rather, it is a contrivance created by individuals to better achieve their individual goals.Virtually everyone agrees that it is good for individuals when government protects them from violence. To do so government must have a monopoly on coercive power.Opinions within the mechanistic tradition diverge. Libertarians, who believe in a very limited government, argue against any further economic role for the government. Libertarians are extremely skeptical about the ability of governments to improve social welfare.Social democrats believe that substantial government intervention is required for the good of individuals.3. Viewpoint of This BookThe mechanistic view of government has come to dominate Anglo-American political thought. Not surprisingly, Anglo-American economic thought has alsodeveloped along individual lines. Within the individualistic tradition there is much controversy with respect to how active government should be.Economic policy is not based on economic analysis alone. The desirability of a given course of government action inevitably depends in part on ethical and political judgments.Government at a Glance1. The Legal Framework2. The Size of GovernmentA more sensible (and common) approach is to measure the size of government by the volume of its annual expenditures, of which there are basically three types:(1) Purchase of goods and services.(2) Transfers of income to people, businesses, or other governments.(3) Interest payments.The federal government itemizes its expenditures in a document referred to a as the unified budget. However, some government activities have substantial effects on resource allocation even though they involve minimal explicit outlays. For example, issuing regulations per se is not very expensive, but compliance with the rules can be very costly. Some have suggested that the costs imposed on the economy by government regulations be published in an annual regulatory budget. Unfortunately, computing such costs is exceedingly difficult so it is unlikely there will ever be an official regulatory budget.The figure is a misleading indicator of the growth of government for several reasons:(1) Because of inflation, the dollars decreased in value over time.(2) The population has also grown over time. An increasing population by itself creates demands for a larger public sector.(3) It is sometimes useful to examine government expenditure compared to the size of the economy. If government doubles in size but at the same time the economy triples, then government has relatively shrunk.Government expenditures have increased in both nominal and real absolute terms, in per capita terms, and as a percentage of GDP.3. ExpendituresNational defense and Social Security are the largest spending items in the federal budget.Much of the government budget consists of so-called entitlement programs-programs determined by the number of people who qualify which are out of hands of the current government. The fast-growing areas such as Social Security and interest payments are relatively fixed in the sense that they are determined by the previous decisions.The share of national defense spending in federal expenditure has fallen over time, while Social Security, public welfare, and payments on outstanding debt have increased in importance. The combination of entitlement programs and interestof the payments reduces yearly control over the level of expenditures. About 34federal budget is relatively uncontrollable.It is useful to break down total expenditures by level of government. State and local governments are clearly important players.4. RevenuesAt the federal level, personal income taxation is currently the single most important source of revenue, accounting for about 45% of the tax collections. Socialof federal revenue collections, which are payroll tax Insurance accounting for 13collections used to finance Social Security and Medicare. The federal corporate income tax decreases. In the state and local sector, the property tax decreases and individual income taxes increase.Changes in the Real Value of Debt When the government is a debtor and prices increase, changes in the real value of the debt may be an important source of revenue.。
罗斯《公司金融》第十版课件Chap001
Corporation
1-8
Sole Proprietorship
Advantages:
• Easiest to start
• Least regulated
• Single owner keeps all the profits • Taxed once as personal income
1-9
1-16
Chapter Outline
• • • • •
1-17
Corporate Finance and the Financial Manager Forms of Business Organization The Goal of Financial Management The Agency Problem and Control of the Corporation Financial Markets and the Corporation
•
• •
1-2
The Goal of Financial Management
The Agency Problem and Control of the Corporation Financial Markets and the Corporation
Chapter Outline Chapter Outline
Financial Markets
Cash flows to the firm
Primary vs. secondary markets
Dealer vs. auction markets
Listed vs. over-the-counter securities
NYSE NASDAQ
罗斯《公司理财》英文习题答案DOCchap014
公司理财习题答案第十四章Chapter 14: Long-Term Financing: An Introduction14.1 a. C om m on Stock A ccountPar V alue$135,430$267,715 shares ==b. Net capital from the sale of shares = Common Stock + Capital SurplusNet capital = $135,430 + $203,145 = $338,575Therefore, the average price is $338,575 / 67,715 = $5 per shareAlternate solution:Average price = Par value + Average capital surplus= $2 + $203,145 / 67,715= $5 per sharec. Book value = Assets - Liabilities = Equity= Common stock + Capital surplus + Retained earnings= $2,708,600Therefore, book value per share is $2,708,600 / 67,715= $40.14.2 a. Common stock = (Shares outstanding ) x (Par value)= 500 x $1= $500Total = $150,500b.Common stock (1500 shares outstanding, $1 par) $1,500Capital surplus* 79,000Retained earnings 100,000Total $180,500* Capital Surplus = Old surplus + Surplus on sale= $50,000 + ($30 - $1) x 1,000=$79,00014.3 a. Shareholders’ equityCommon stock ($5 par value; authorized 500,000shares; issued and outstanding 325,000 shares)$1,625,000 Capital in excess of par* 195,000Retained earnings** 3,794,600Total $5,614,600*Capital surplus = 12% of Common Stock= (0.12) ($1,625,000)= $195,000**Retained earnings = Old retained earnings + Net income - Dividends= $3,545,000 + $260,000 - ($260,000)(0.04)= 3,794,600b. Shareholders’ equity$1,750,000Common stock ($5 par value; authorized 500,000shares; issued and outstanding 350,000 shares)Capital in excess of par* 170,000Retained earnings 3,794,600Total $5,714,600*Capital surplus is reduced by the below par sale, i.e. $195,000 - ($1)(25,000) =$170,00014.4 a. Under straight voting, one share equals one vote. Thus, to ensure the election of onedirector you must hold a majority of the shares. Since two million shares areoutstanding, you must hold more than 1,000,000 shares to have a majority of votes.b. Cumulative voting is often more easily understood through a story. Remember thatyour goal is to elect one board member of the seven who will be chosen today.Suppose the firm has 28 shares outstanding. You own 4 of the shares and one otherperson owns the remaining 24 shares. Under cumulative voting, the total number ofvotes equals the number of shares times the number of directors being elected,(28)(7) = 196. Therefore, you have 28 votes and the other stockholder has 168 votes.Also, suppose the other shareholder does not wish to have your favorite candidateon the board. If that is true, the best you can do to try to ensure electing onemember is to place all of your votes on your favorite candidate. To keep yourcandidate off the board, the other shareholder must have enough votes to elect allseven members who will be chosen. If the other shareholder splits her votes evenlyacross her seven favorite candidates, then eight people, your one favorite and herseven favorites, will all have the same number of votes. There will be a tie! If shedoes not split her votes evenly (for example 29 28 28 28 28 28 27) then yourcandidate will win a seat. To avoid a tie and assure your candidate of victory, youmust have 29 votes which means you must own more than 4 shares.Notice what happened. If seven board members will be elected and you want to becertain that one of your favorite candidates will win, you must have more than one-eighth of the shares. That is, the percentage of the shares you must have to win ismore than1.(The num ber of m em bers being elected The num ber you w ant to select)Also notice that the number of shares you need does not change if more than oneperson owns the remaining shares. If several people owned the remaining 168shares they could form a coalition and vote together.Thus, in the Unicorn election, you will need more than 1/(7+1) = 12.5% of theshares to elect one board member. You will need more than (2,000,000) (0.125) =250,000 shares.Cumulative voting can be viewed more rigorously. Use the facts from the Unicornelection. Under cumulative voting, the total number of votes equals the number of公司理财习题答案第十四章shares times the number of directors being elected, 2,000,000 x 7 = 14,000,000. Let x be the number of shares you need. The number of shares necessary is7x14,000,0007x7x250,000.>-==>> You will need more than 250,000 shares.14.5 She can be certain to have one of her candidate friends be elected under the cumulativevoting rule. The lowest percentage of shares she needs to own to elect at least one out of 6candidates is higher than 1/7 = 14.3%. Her current ownership of 17.3% is more thanenough to ensure one seat. If the voting rule is staggered as described in the question, shewould need to own more than 1/4=25% of the shares to elect one out of the three candidatesfor certain. In this case, she will not have enough shares.14.6 a. You currently own 120 shares or 28.57% of the outstanding shares. You need to control 1/3 of the votes, which requires 140 shares. You need just over 20 additionalshares to elect yourself to the board.b. You need just over 25% of the shares, which is 250,000 shares. At $5 a share it willcost you $2,500,000 to guarantee yourself a seat on the board.14.7 The differences between preferred stock and debt are:a. The dividends of preferred stock cannot be deducted as interest expenses whendetermining taxable corporate income. From the individual investor’s point of view,preferred dividends are ordinary income for tax purposes. From corporate investors,80% of the amount they receive as dividends from preferred stock are exempt fromincome taxes.b. In liquidation, the seniority of preferred stock follows that of the debt and leads thatof the common stock.c. There is no legal obligation for firms to pay out preferred dividends as opposed tothe obligated payment of interest on bonds. Therefore, firms cannot be forced intodefault if a preferred stock dividend is not paid in a given year. Preferred dividendscan be cumulative or non-cumulative, and they can also be deferred indefinitely.14.8 Some firms can benefit from issuing preferred stock. The reasons can be:a. Public utilities can pass the tax disadvantage of issuing preferred stock on to theircustomers, so there is substantial amount of straight preferred stock issued byutilities.b. Firms reporting losses to the IRS already don’t have positive income for taxdeduction, so they are not affected by the tax disadvantage of dividend vs. interestpayment. They may be willing to issue preferred stock.c. Firms that issue preferred stock can avoid the threat of bankruptcy that exists withdebt financing because preferred dividends are not legal obligation as interestpayment on corporate debt.14.9 a. The return on non-convertible preferred stock is lower than the return on corporatebond for two reasons:i. Corporate investors receive 80% tax deductibility on dividends if they hold thestock. Therefore, they are willing to pay more for the stock; that lowers its return.ii. Issuing corporations are willing and able to offer higher returns on debt since theinterest on the debt reduces their tax liabilities. Preferred dividends are paid outof net income, hence they provide no tax shield.b. Corporate investors are the primary holders of preferred stock since, unlikeindividual investors, they can deduct 80% of the dividend when computing their taxliability. Therefore, they are willing to accept the lower return which the stockgenerates.14.10 The following table summarizes the main difference between debt and equity.Debt EquityRepayment is an obligation of the firm Yes NoGrants ownership of the firm No YesProvides a tax shield Yes NoLiquidation will result if not paid Yes NoCompanies often issue hybrid securities because of the potential tax shield and thebankruptcy advantage. If the IRS accepts the security as debt, the firm can use it as a tax shield. If the security maintains the bankruptcy and ownership advantages of equity, the firm has the best of both worlds.14.11 The trends in long-term financing in the United States were presented in the text. If CableCompany follows the trends, it will probably use 80% internal financing, net income of the project plus depreciation less dividends, and 20% external financing, long term debt and equity.。
Public Finance-Harvey Rosen-Chapter 12
Simple Utilitarianism
Utilitarian Social Welfare Function: W = F(U1, U2, ,,,, Un) "Promote Greatest Good for Greatest Number" Additive Social Welfare Function W = U1 + U2 + … + Un
12-7
Implications for Income Inequality
This is the netPaul gains gain to this much society e utility
f Peter's marginal utility Paul's marginal utility
Peter's income
12-8
Evaluating the Assumptions
Assumption 1 Assumption 2 Assumption 3
12-9
The Maximin Criterion
Social Welfare Function W = Minimum(U1, U2, …, Un) Maximin criterion - No inequality acceptable unless it works to the advantage of the least well off Original position – "behind the veil of ignorance" Critique of Rawls
12-17
�
12-14
In-kind Transfers
商业银行管理-ROSE-7e-课后答案chapter-10汇编
CHAPTER 10THE INVESTMENT FUNCTION IN BANKING AND FINANCIAL SERVICESMANAGEMENTGoal of This Chapter: The purpose of this chapter is to discover the types of securities that financial institutions acquire for their investment portfolio and to explore the factors that a manager should consider in determining what securities a financial institution should buy or sell.Key Topics in This Chapter•Nature and Functions of Investments•Investment Securities Available: Advantages and Disadvantages•Measuring Expected Returns•Taxes, Credit, and Interest Rate Risks•Liquidity, Prepayment, and Other Risks•Investment Maturity Strategies•Maturity Management ToolsChapter OutlineI. Introduction: The Roles Performed by Investment Securities in Bank PortfoliosII. Investment Instruments Available to Banks and Other Financial FirmsIII. Popular Money-Market InstrumentsA. Treasury BillsB. Short-Term Treasury Notes and BondsC. Federal Agency SecuritiesD. Certificates of DepositE. International Eurocurrency DepositsF. Bankers' AcceptancesG. Commercial PaperH. Short-Term Municipal ObligationsIV. Popular Capital Market InstrumentsA. Treasury Notes and BondsB. Municipal Notes and BondsC. Corporate Notes and BondsIII. Other Investment Instruments Developed More RecentlyA. Structured NotesB. Securitized AssetsC. Stripped SecuritiesIV. Investment Securities Actually Held by BanksV. Factors Affecting the Choice of Investment SecuritiesA. Expected Rate of ReturnB. Tax Exposure1. The Tax Status of State and Local Government Bonds2. Bank Qualified Bonds3. Tax Swapping Tool4. The Portfolio Shifting ToolC. Interest-Rate RiskD. Credit or Default RiskE. Business RiskF. Liquidity RiskG. Call RiskH. Prepayment RiskI. Inflation RiskJ. Pledging RequirementsVI. Investment Maturity StrategiesA. The Ladder or Spaced-Maturity PolicyB. The Front-End Load Maturity PolicyC. The Back-End Load Maturity PolicyD. The Barbell StrategyE. The Rate Expectations ApproachVII. Maturity Management ToolsA. The Yield CurveB. DurationVIII. Summary of the ChapterConcept Checks10-1. Why do banks and institutions choose to devote a significant portion of their assets to investment securities?Investments perform many different roles that act as a necessary complement to the advantages loans provide. Investments generally have less credit risk than loans, allow the bank or thrift institution to diversify into different localities than most of its loans permit, provide additional liquid reserves in case more cash is needed, provide collateral as called for by law and regulation to back government deposits, help to stabilize bank income over the business cycle, and aid banks in reducing their exposure to taxes.10-2. What key roles do investments play in the management of a bank or other depository institution?See answer to 10-110-3. What are the principal money market and capital market instruments available to institutions today? What are their most important characteristics?Banks purchase a wide range of investment securities. The principal money market instruments available to banks today are Treasury bills, federal agency securities, CD's issued by other depository institutions, Eurodollar deposits, bankers' acceptances, commercial paper, andshort-term municipal obligations. The common characteristics of most these instruments is their safety and high marketability. Capital market instruments available to banks include Treasury notes and bonds, state and local government notes and bonds, mortgage-backed securities, and corporate notes and bonds. The characteristics of these securities is their long run income potential.10-4. What types of investment securities do banks prefer the most? Can you explain why?Commercial banks clearly prefer these major types of investment securities: United States Treasury securities, federal agency securities, and state and local government (municipal) bonds and notes. They hold small amounts of equities and other debt securities (mainly corporate notes and bonds). They pick these types because they are best suited to meet the objectives of a banks investment portfolio, such as tax sheltering, reducing overall risk exposure, a source of liquidity and naturally generating income as well as diversifying their assets.10-5. What are securitized assets? Why have they grown so rapidly in recent years?Securitized assets are loans that are placed in a pool and, as the loans generate interest and principal income, that income is passed on to the holders of securities representing an interest in the loan pool. These loan-backed securities are attractive to many banks because of their higher yields and frequent federal guarantees (in the case, for example, of most home-mortgage-backed securities) as well as their relatively high liquidity and marketability10-6. What special risks do securitized assets present to institutions investing in them?Securitized assets often carry substantial interest-rate risk and prepayment risk, which arises when certain loans in the securitized-asset pool are paid off early by the borrowers (usually because interest rates have fallen and new loans can be substituted for the old loans at cheaper loan rates) or are defaulted. Prepayment risk can significantly decrease the values of securities backed by loans and change their effective maturities.10-7. What are structured notes and stripped securities? What unusual features do they contain?Structured notes usually are packaged investments assembled by security dealers that offer customers flexible yields in order to protect their customers' investments against losses due to inflation and changing interest rates. Most structured notes are based upon government or federal agency securities.Stripped securities consist of either principal payments or interest payments from a debt security. The expected cash flow from a Treasury bond or mortgage-backed security is separated into a stream of principal payments and a stream of interest payments, each of which may be sold as aseparate security maturing on the day the payment is due. Some of these stripped payments are highly sensitive to changes in interest rates.10-8. How is the expected yield on most bonds determined?For most bonds, this requires the calculation of the yield to maturity (YTM) if the bond is to be held to maturity or the planned holding period yield (HPY) between point of purchase and point of sale. YTM is the expected rate of return on a bond held until its maturity date is reached, based on the bond's purchase price, promised interest payments, and redemption value at maturity. HPY is a rate of discount bringing the current price of a bond in line with its stream of expected cash inflows and its expected sale price at the end of the bank's holding period.10-9. If a government bond is expected to mature in two years and has a current price of $950, what is the bond's YTM if it has a par value of $1,000 and a promised coupon rate of 10 percent? Suppose this bond is sold one year after purchase for a price of $970. What would this investor's holding period yield be?The relevant formula is:$950 = 221Y TM) 1(1000$Y TM) (1$100 Y TM) 1(100$+++++Using a financial calculator we get:YTM = 12.99%If the bond is sold after one year, the formula entries change to:$950 = 11Y TM)(1$970 Y TM) 1(100$+++and the YTM is:YTM = 12.63%10-10. What forms of risk affect investments?The following forms of risk affect investments: interest-rate risk, credit risk, business risk, liquidity risk, prepayment risk, call risk, and inflation risk. Interest-rate risk captures thesensitivity of the value of investments to interest-rate movements, while credit risk reflects the risk of default on either interest or principal payments. Business risk refers to the impact of credit conditions and the economy, while liquidity risk focuses on the price stability and marketability of investments. Prepayment risk is specific to certain types of investments and focuses on the fact that some loans which the securities are based on can be paid off early. Call risk refers to the early retirement of securities and inflation risk refers to their possible loss of purchasing power.10-11. How has the tax exposure of various U.S. bank security investments changed in recent years?In recent years, the government has treated interest income and capital gains from most bank investments as ordinary income for tax purposes. In the past, only interest was treated as ordinary income and capital gains were taxed at a lower rate. Tax reform in the United States has also had a major impact on the relative attractiveness of state and local government bonds as bank investments, limiting bankers’ ability to deduct borrowing costs for tax purposes when borrowing money to buy municipal securities.10-12. Suppose a corporate bond an investment officer would like to purchase for her bank has a before-tax yield of 8.98 percent and the bank is in the 35 percent federal income tax bracket. What is the bond's after-tax gross yield? What after tax rate of return must a prospective loan generate to be competitive with the corporate bond? Does a loan have some advantages for a lending institution that a corporate bond would not have?After-tax Gross Yield on Corporate Bond = 8.98 %( 1 - 0.35) = 5.84%.A prospective loan must generate a comparable yield to that of the bond to be competitive. However, granting a loan to a corporation may have the added advantage of bringing in additional service business for the bank that merely purchasing a corporate bond would not do. In this case the bank would accept a somewhat lower yield on the loan compared to the bond in anticipation of getting more total revenue from the loan relationship due to the sale of other bank services.10-13. What is the net after-tax return on a qualified municipal security whose nominal gross return is 6 percent, the cost of borrowed funds is 5 percent, and the bank is in the 35 percent tax bracket? What is the tax-equivalent gross yield (TEY) on this tax-exempt security?Net After-Tax Return = (.06 - .05) + (0.35 x 0.80 x .05) = 0.024 or 2.4%The security's tax-equivalent yield in gross terms is 6 %/( 1-0.35) or 9.23%.10-14. Spiro Savings Bank currently holds a government bond valued on the day of its purchase at $5 million, with a promised interest yield of 6-percent, whose current market value is $3.9 million. Comparable quality bonds are available today for a promised yield of 8 percent. What are the advantages to Spiro Savings from selling the government bond bearing a 6 percent promised yield and buying some 8 percent bonds?In this instance the bank could sell the 6-percent bonds, buy the 8 percent bonds, and experience an extra 2 percent in yield. The bank would experience a capital loss of $1.1 million from the bond's book value, but the after-tax loss would be only $1.1 million * (1-0.35) or $0.715 million.10-15. What is tax swapping? What is portfolio shifting? Give an example of each?A tax swap involves exchanging one type of investment security for another when it is advantageous to do so in reducing the bank's current or future tax exposure. For example, the bank may sell investment securities at a loss to offset high taxable income on loans or to replace taxable securities with tax-exempt securities. Portfolio switching which involves selling certain securities out of a bank's portfolio, often at a loss, and replacing them with other securities, is usually carried out to gain additional current income, add to future income, or to minimize a bank's current or future tax liability. For example, the bank may shift its holdings of investment securities by selling off selected lower-yielding securities at a loss, and substituting higher-yielding securities in order to offset large amounts of loan income.10-16. Why do depository institutions face pledging requirements when they accept government deposits?Pledging requirements are in place to safeguard the deposit of public funds. The first $100,000 of public deposits is covered by federal deposit insurance; the rest must be backed up by bank holdings of U.S. Treasury and federal agency securities valued at their par values.10-17. What types of securities are used to meet collateralization requirements?When a bank borrows from the discount window of its district Federal Reserve bank, it must pledge either federal government securities or other collateral acceptable to the Fed. Typically, banks will use U.S. Treasury securities to meet these collateral requirements. If the bank raises funds through repurchase agreements (RPs), banks must pledge securities, typically U.S. Treasury and federal agency issues, as collateral in order to borrow at the low RP interest rate.10-18. What factors affect a financial service institution’s decision regarding the different maturities of securities it should hold?In choosing among various maturities of short-term and long-term securities to hold, the financial institution needs to carefully consider the use of two key maturity management tools - the yield curve and duration. These two tools help management understand more fully the consequences and potential impact on earnings and risk of any particular maturity mix of securities they choose.10-19. What maturity strategies do financial firms employ in managing their portfolios?In choosing the maturity distribution of securities to be held in the financial firm’s investment portfolio one of the following strategies typically is chosen by most institutions:A. The Ladder or Spread-Maturity StrategyB. The Front-End Load Maturity StrategyC. The Back-End Load Maturity StrategyD. The Bar Bell StrategyE. The Rate-Expectation ApproachThe ladder or spaced-maturity strategy involves equally spacing out a bank's security holdings over its preferred maturity range to stabilize investment earnings. The front-end load maturity strategy implies that a bank will pile up its security holdings into the shortest maturities to have maximum liquidity and minimize the risk of loss due to rising interest rates. The back-end loaded maturity policy calls for placing all security holdings at the long-term end of the maturity spectrum to maximize potential gains if interest rates fall and to earn the highest average yields. In contrast, the bar-bell strategy places a portion of the bank's security holdings at the short-end of the maturity spectrum and the rest at the longest maturities, thus providing both liquidity and maximum income potential. Finally, the rate expectations approach calls for shifting maturities toward the short end if rates are expected to rise and toward the long-end of the maturity scale if interest rates are expected to fall.10-20. Bacone National Bank has structured its investment portfolio, which extends out tofour-year maturities, so that it holds about $11 million each in one-year, two-year, three-year and four-year securities. In contrast, Dunham National Bank and Trust holds $36 million on one- and two-year securities and about $30 million in 8- to 10-year maturities. What investment maturity strategy is each bank following? Why do you believe that each of these banks has adopted the particular strategy it has reflected in the maturity structure of its portfolio?Bacone National Bank has structured its investment portfolio to include $11 million equally in each of four one-year maturity intervals. This is clearly a spaced maturity or ladder policy. In contrast, Dunham National Bank holds $36 million in one and two-year securities and about $30 million in 8 and 10-year maturities, which is clearly a barbell strategy. Dunham National Bank pursues its strategy to provide both liquidity (from the short maturities) and high income (from the long maturities), while Bacone National is a small bank that needs a simple-to-execute strategy. 10-21. How can the yield curve and duration help an investment officer choose which securities to acquire or sell?Yield curves possibly provide a forecast of the future course of short-term rates, telling us what the current average expectation is in the market. The yield curve also provides an indication of equilibrium yields at varying maturities and, therefore, gives an indication if there are any significantly underpriced or overpriced securities. Finally, the yield curve's shape gives the bank's investment officer a measure of the yield trade-off - that is, how much yield will change, on average, if a security portfolio is shortened or lengthened in maturity.Duration tells a bank about the price volatility of its earning assets and liabilities due to changes in interest rates. Higher values of duration imply greater risk to the value of assets and liabilities held by a bank. For example, a loan or security with a duration of 4 years stands to lose twice as much in terms of value for the same change in interest rates as a loan or security with a duration of 2 years.10-22. A bond currently selling for $950 based on a par value of $1,000 and promises $100 in interest for three years before being retired. Yields to maturity on comparable-quality securities are 12 percent. What is the bond’s duration? Suppose interest rates in the market fall to 10 percent. What will be the approximate percent change in the bond’s price?Year Cash Flow Present Value Factor at 12% Present Value of Cash Flow Weight Of Each Cash FlowDuration Components 1 $100 0.893 $89.30 (89.30/950)=0.0940 0.09402 100 0.797 79.70 (79.70/950)=0.0839 0.16783 1100 0.712 783.20 (783.20/950)=0.8244 2.47332.7351 yearsClearly the bond's duration is 2.7351 years. If interest in the market fall to 10 percent, the approximate percentage change in the bond's price will be:Percentage Change in Price =100% x i)(1i x D +∆- percent 4.884 100% x .12)(1.02- x 2.7351- =+= Problems10-1. A 10-year U.S. Treasury bond with a par value of $1000 is currently for $1015 fromvarious security dealers. The bond carries a 7-percent coupon rate. If purchased today and held to maturity is its expected yield to maturity?(Hint - the following relationships can help in solving for the yield:If price < par value, then yield > coupon rate;If price = par value, then yield = coupon rate;If price > par value, then yield < coupon rate.)Since the bond is selling at a premium, that is, price > par value, the yield will be less than the coupon rate, or a yield < 7%.The relevant formula is:$1015 = 101021Y TM)(1$1000 Y TM) (1$70 ... Y TM) (1$70 Y TM) (1$70++++++++YTM = 6.79% (using a financial calculator)10-2. A municipal bond is selling today for $1036.80 and has a $1,000 face (par) value. Its yield to maturity is 6 percent, and the bond promises its holders $65 per year in interest for the next 10 years. What is the bond's duration?Year Annual Interest Income PV at 6% PV of Annual Interest Time Period Recorded Time-Weighted PV1 $ 65 0.943 61.32 x 1 = $61.322 $ 65 0.890 57.85 x 2 = $115.703 $ 65 0.840 54.58 x 3 = $163.744 $ 65 0.792 51.49 x 4 = $205.965 $ 65 0.747 48.57 x 5 = $242.856 $ 65 0.705 45.82 x 6 = $274.927 $ 65 0.665 43.23 x 7 =$302.618 $ 65 0.627 40.78 x 8 =$326.249$ 65 0.592 38.47 x 9 = $346.2310 $ 65 0.558 36.30 x 10 = $363.0010 $1000 0.558 558.39 x 10 = $5583.90$1036.80 $7986.47Then duration = $ 7986.47 / $1036.80 = 7.703years10-3. Calculate the yield to maturity of a 10-year U.S. Government bond that is currently selling for $1050 in today's market and carries an 8-percent coupon rate with interest paid semiannually. $1050 = 202021Y TM/2) (1$1000 Y TM/2) (1$40 ... Y TM/2) (1$40 Y TM/2) (1$40++++++++YTM/2 = 3.64%, YTM = 7.29% (using a financial calculator)10-4. A corporate bond being seriously considered for purchase by First Security Savings Bank will mature 20 years from today and promises a 12 percent interest payment once a year. Recent inflation in the economy has driven the yield to maturity on this bond to 15 percent, and it carries a face value of $1000. Calculate this bond’s duration.Year AnnualInterestIncomePVat 15%PV ofAnnualInterest XTimePeriodRecorded =Time-WeightedPV1 $120 0.870 $104.40 1 $104.402 120 0.756 90.72 2 181.443 120 0.658 78.96 3 235.884 120 0.572 68.84 4 274.565 120 0.497 59.64 5 298.206 120 0.432 51.84 6 311.047 120 0.376 45.12 7 315.848 120 0.327 39.24 8 313.929 120 0.284 34.08 9 306.7210 120 0.247 29.64 10 296.4011 120 0.215 25.80 11 283.8012 120 0.187 22.44 12 269.2813 120 0.163 19.56 13 254.2814 120 0.141 16.92 14 236.8815 120 0.123 14.76 15 221.4016 120 0.017 12.84 16 205.4417 120 0.093 11.16 17 189.7218 120 0.081 9.72 18 174.9619 120 0.070 8.40 19 159.6020 120 0.061 7.32 20 146.4020 1000 0.061 61.00 20 1220.00$812.2$6001.16Therefore, the bond's duration is: $6001.16/$812.20 = 7.39 years.10-5. Tiger National Bank regularly purchases municipal bonds issued by small rural school districts in its region of the state. At the moment, the bank is considering purchasing an $8 million general obligation issue from the Youngstown school district, the only bond issue that district plans this year. The bonds, which mature in 15 years, carry a nominal annual rate of return of 7.75%. Tiger, which is in the top corporate tax bracket of 35 percent, must pay an average interest rate of 7.38% to borrow the funds needed to purchase the municipals. Would you recommend purchasing these bonds?a) Calculate the net after tax return on this bank qualified municipal security. What isthe tax advantage for being a qualified bond?Because these bonds were issued by a small governmental unit issuing less than $10 million in securities annually, the interest cost the bank has to pay to acquire the funds needed to buy these bonds is tax deductible. Therefore, their net after-tax return is:Net A.T.R = (7.75% - 7.38%) + (0.80 x 0.35 x 7.38%)= 7.75% -7.38% + 2.066%= 2.436%This net yield figure should be compared with other investments of comparable risk on an after-tax basis. However, the tax-exempt status of the income coupled with thetax-deductibility of the interest expense make these bonds a very attractive alternative. b) What is the tax equivalent yield for this bank qualified municipal security?TEY = 7752066135...+-= 15.10%10-6. Tiger National Bank also purchases municipal bonds issued by the city of Cleveland. Currently the bank is considering a nonqualified general obligation municipal issue. The bonds which mature in 10 years provide a nominal annual rate of return of 8.1 percent. Tiger National Bank has the same cost of funds and tax rate as stated in the previous problem.a. Calculate the net after tax return on this nonqualified municipal securityNet A.T.R. = 8.1 – 7.38 = 0.72 percentb. What is the tax equivalent yield for this nonqualified municipal security?TEY =810135..-= 12.46 percentc. Discuss the pros and cons of purchasing the nonqualified rather than the bankqualified municipal described in the previous problem.Clearly, the net after tax return for the nonqualified bond is lower than for thequalified bond. On the other hand, smaller municipal bonds are less liquid and thus,carry a higher liquidity risk (they also tend to have a higher default risk, but thatshould already be priced into the yield of the bond).10-7. Lakeway Thrift savings and Trust is interested in doing some investment portfolio shifting. This institution has had a good year thus far with strong loan demand; its loan revenue has increased by 16 percent over last year’s level. Lakeway is subject to the 35 percent corporate income tax rate. The investments officer has several options in the form of bonds that have been held for some time in its portfolio:a. Selling $4 million in 12-year City of Dallas bonds with a coupon rate of 7.5 percentand purchasing $4 million in bonds from Bexar County (also with 12-year maturities) witha coupon rate of 8% and issued at par. The Dallas bonds have a current market value of$3,750,000 but are listed at par on the thrift institution’s booksb. Selling $4 million in 12-year U.S. Treasury bonds that carry a coupon rate of 12%and are recorded at par, which was the price when the bank purchased them. The market value of these bonds has risen to $4,330,000.Which of these two portfolio shifts would you recommend? Is there a good reason for not selling the Treasury bonds? What other information is needed to make the best decision? Please explain. Under Option A Lakeway will take an immediate $4 million - $3.75 million, or $250,000, loss before taxes (or a loss of $162,500 after taxes) which can be used to help offset the high taxable loan income earned this year. Moreover, the thrift will be able to earn 8% on an investment of $4 million, or $320,000, in annual interest income compared to only $300,000 with the bonds currently held or a gain in tax-exempt income of $20,000 per year. (Of course, if the thrift can only afford to buy $3,750,000 in new municipals - the sale price of the old bonds - it will generate about $300,000 in after-tax interest and have no net gain in tax-exempt interest income, but will still have a tax-deductible loss on the sale of the old bonds.)Under Option B the U.S. Treasury bonds must be sold for a gain of $330,000 which is taxable income. Because Lakeway does not need additional taxable income, Option B is less desirable than Option A. Besides, the Treasury bonds are selling at a premium above par which indicates their coupon rate is higher than current interest rates on investments of comparable risk, suggesting the wisdom of retaining these bonds in the bank's portfolio either until loan revenues decline and the bank needs additional taxable income or until interest rates rise well above current levels and new securities appear that promise significantly higher interest yields.10-8. Current market yields on U.S. government securities are distributed by maturity as follows: 3-month T bills = 7.69 percent6-month T bills = 7.49 percent1-year T notes = 7.77 percent2-year T notes = 7.80 percent3-year T notes = 7.80 percent5-year T notes = 7.81 percent7-year T notes = 7.86 percent10-year T notes = 7.87 percent30-year T bonds = 7.90 percentDraw a yield curve for the above securities. What shape does the curve have? What significance might this yield curve have for an investing institution with 75 percent of its investment portfolio in 7-year to 30-year Treasury bonds and 25 percent in U.S. government bills and notes under one year? What would you recommend to management?The yield curve for U.S. Treasury bonds clearly slopes upward after the 6-month maturity point and declines for 3- to 6-month maturities. Like most yield curves this curve becomes quite flat at longer maturities, particularly over the 7- to 30-year maturity segment. A financial institution with 75 percent of its portfolio in this 7- to 30-year range gains very little yield advantage over those institutions holding shorter maturities in the form of 3-month bills to 5-year notes. Yet, the longer-term bonds are less liquid so that a bank holding 7+-year maturities faces substantially greater liquidity risk. This bank would probably be better off to do some portfolio shifting into medium-term maturities.10-9. A bond possesses a duration of 5.82 years. Suppose that market interest rates oncomparable bonds were 7 percent this morning but have now shifted upward to 7.5 percent. What percentage change in the bond’s value occurred when interest rates moved 0.5 percent higher? Percent Change in Value = 5.82 2.72%or 0272.-=-=⎪⎭⎫ ⎝⎛++ 1.072.91.071.00510-10. The investment officer for Sillistine Savings is concerned about interest-rate risk lowering the value of the institution’s bonds. A check of the bond portfolio reveals an average duration of4.5 years. How could this bond portfolio be altered in order to minimize interest rate risk within the next year?Sillistine’s bond portfolio has an average duration of 4.5 years. This is relatively long, subjecting them to substantial interest-rate risk. Shortening the duration of the portfolio or the use of hedging tools (such as futures and options) is recommended.10-11. A bank’s economic department has just forecast accelerated growth in the economy with GDP expected to grow at a 4.5 percent annual growth rate for at least the next two years. What are the implications of this economic forecast for an investment officer? What types of securitiesshould the investment officer think most seriously about adding to the investment portfolio? Why? Suppose the bank holds a security portfolio similar to the one described in Table 10-3 for allinsured U.S. banks. Which type of securities might the investments officer want to think seriously about selling if the projected economic expansion takes place? What losses might occur and how could these be minimized?。
罗斯《公司金融》第十版课件Chap001
Other stakeholders
Work the Web Example
The Internet provides a wealth of infnies
One excellent site is Click on the web surfer to go to the site, choose a
Corporation
1-11
Partnership
Advantages:
• Two or more owners • More capital available • Relatively easy to start
• Income taxed once as personal income
1-12
Sole Proprietorship
Disadvantages:
• Limited to life of owner • Equity capital limited to owner’s personal wealth • Unlimited liability
• Difficult to sell ownership interest
Financial Markets
Cash flows to the firm
Primary vs. secondary markets
Dealer vs. auction markets
Listed vs. over-the-counter securities
NYSE NASDAQ
Does this mean we should do anything and everything to maximize owner wealth?
双语财政学课件
西方财政学的代表
亚当· 斯密
约翰· 梅纳德· 凯恩斯
约瑟夫· 斯蒂格利茨
9
中国以马克思主义基本原理为指导的财政学
10
3 Focus of public finance
Focus is on microeconomic functions of government ------the way government affects the allocation of resources and the distribution of income.
Legal
framework Size of government Expenditures Revenues
17
1 The Legal framework
government
限制
(1)Federal
Expenditure: No real constraints on spending in
Allocation
资源配置
of resources
Distribution
收入分配
of income
Stability
and development of economy
经济稳定与发展
12
§2 Public Finance and Ideology
How
should a government function in economic sphere? （1）Organic view
Fiscal
policy
Positive policy –Neutral policy --Passive
(negative) policy How about the present fiscal policy?
公司理财罗斯英文原书第九版第十章
Annual Return Standard Deviation
10.5 Risk Statistics
There is no universally agreed-upon definition of risk. The measures of risk that we discuss are variance and standard deviation.
Chapter 10
Risk and Return: Lessons from Market History
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Key Concepts and Skills
Returns: Example
Dollar Return:
$327 gain
$300 $27
Time
0
1 Percentage Return:
-$4,500
$327 7.3% = $4,500
10.2 Holding Period Return
The holding period return is the return that an investor would get when holding an investment over a period of T years, when the return during year i is given as Ri:
Know how to calculate the return on an investment Know how to calculate the standard deviation of an investment’s returns Understand the historical returns and risks on various types of investments Understand the importance of the normal distribution Understand the difference between arithmetic and geometric average returns
罗斯《公司理财》英文习题答案DOCchap004
公司理财习题答案第四章Chapter 4: Net Present Value4.1 a. $1,000 ⨯ 1.0510 = $1,628.89b. $1,000 ⨯ 1.0710 = $1,967.15c. $1,000 ⨯ 1.0520 = $2,653.30d. Interest compounds on the I nterest already earned. Therefore, the interest earnedin part c, $1,653.30, is more than double the amount earned in part a, $628.89.4.2 a. $1,000 / 1.17 = $513.16b. $2,000 / 1.1 = $1,818.18c. $500 / 1.18 = $233.254.3 You can make your decision by computing either the present value of the $2,000 that youcan receive in ten years, or the future value of the $1,000 that you can receive now.Present value: $2,000 / 1.0810 = $926.39Future value: $1,000 ⨯ 1.0810 = $2,158.93Either calculation indicates you should take the $1,000 now.4.4 Since this bond has no interim coupon payments, its present value is simply the presentvalue of the $1,000 that will be received in 25 years. Note: As will be discussed in the next chapter, the present value of the payments associated with a bond is the price of that bond.PV = $1,000 /1.125 = $92.304.5 PV = $1,500,000 / 1.0827 = $187,780.234.6 a. At a discount rate of zero, the future value and present value are always the same.Remember, FV = PV (1 + r) t. If r = 0, then the formula reduces to FV = PV.Therefore, the values of the options are $10,000 and $20,000, respectively. Youshould choose the second option.b. Option one: $10,000 / 1.1 = $9,090.91Option two: $20,000 / 1.15 = $12,418.43Choose the second option.c. Option one: $10,000 / 1.2 = $8,333.33Option two: $20,000 / 1.25 = $8,037.55Choose the first option.d. You are indifferent at the rate that equates the PVs of the two alternatives. Youknow that rate must fall between 10% and 20% because the option you wouldchoose differs at these rates. Let r be the discount rate that makes you indifferentbetween the options.$10,000 / (1 + r) = $20,000 / (1 + r)5(1 + r)4 = $20,000 / $10,000 = 21 + r = 1.18921r = 0.18921 = 18.921%4.7 PV of Joneses’ offer = $150,000 / (1.1)3 = $112,697.22Since the PV of Joneses’ offer is less than Smiths’ offer, $115,000, you should chooseSmiths’ offer.4.8 a. P0 = $1,000 / 1.0820 = $214.55b. P10 = P0 (1.08)10 = $463.20c. P15 = P0 (1.08)15 = $680.594.9 The $1,000 that you place in the account at the end of the first year will earn interest for sixyears. The $1,000 that you place in the account at the end of the second year will earninterest for five years, etc. Thus, the account will have a balance of$1,000 (1.12)6 + $1,000 (1.12)5 + $1,000 (1.12)4 + $1,000 (1.12)3= $6,714.614.10 PV = $5,000,000 / 1.1210 = $1,609,866.184.11 a. The cost of investment is $900,000.PV of cash inflows = $120,000 / 1.12 + $250,000 / 1.122 + $800,000 / 1.123= $875,865.52Since the PV of cash inflows is less than the cost of investment, you should notmake the investment.b. NPV = -$900,000 + $875,865.52= -$24,134.48c. NPV = -$900,000 + $120,000 / 1.11 + $250,000 / 1.112 + $800,000 / 1.113= $-4,033.18Since the NPV is still negative, you should not make the investment.4.12 NPV = -($340,000 + $10,000) + ($100,000 - $10,000) / 1.1+ $90,000 / 1.12 + $90,000 / 1.13 + $90,000 / 1.14 + $100,000 / 1.15= -$2,619.98Since the NPV is negative, you should not buy it.If the relevant cost of capital is 9 percent,NPV = -$350,000 + $90,000 / 1.09 + $90,000 / 1.092 + $90,000 / 1.093+ $90,000 / 1.094 + $100,000 / 1.095= $6,567.93Since the NPV is positive, you should buy it.4.13 a. Profit = PV of revenue - Cost = NPVNPV = $90,000 / 1.15 - $60,000 = -$4,117.08No, the firm will not make a profit.b. Find r that makes zero NPV.$90,000 / (1+r)5 - $60,000 = $0(1+r)5 = 1.5r = 0.08447 = 8.447%4.14 The future value of the decision to own your car for one year is the sum of the trade-invalue and the benefit from owning the car. Therefore, the PV of the decision to own thecar for one year is$3,000 / 1.12 + $1,000 / 1.12 = $3,571.43Since the PV of the roommate’s offer, $3,500, is lower than the aunt’s offer, you shouldaccept aunt’s offer.4.15 a. $1.000 (1.08)3 = $1,259.71b. $1,000 [1 + (0.08 / 2)]2 ⨯ 3 = $1,000 (1.04)6 = $1,265.32c. $1,000 [1 + (0.08 / 12)]12 ⨯ 3 = $1,000 (1.00667)36 = $1,270.24d. $1,000 e0.08 ⨯ 3 = $1,271.25公司理财习题答案第四章e. The future value increases because of the compounding. The account is earninginterest on interest. Essentially, the interest is added to the account balance at theend of every compounding period. During the next period, the account earnsinterest on the new balance. When the compounding period shortens, the balancethat earns interest is rising faster.4.16 a. $1,000 e0.12 ⨯ 5 = $1,822.12b. $1,000 e0.1 ⨯ 3 = $1,349.86c. $1,000 e0.05 ⨯ 10 = $1,648.72d. $1,000 e0.07 ⨯ 8 = $1,750.674.17 PV = $5,000 / [1+ (0.1 / 4)]4 ⨯ 12 = $1,528.364.18 Effective annual interest rate of Bank America= [1 + (0.041 / 4)]4 - 1 = 0.0416 = 4.16%Effective annual interest rate of Bank USA= [1 + (0.0405 / 12)]12 - 1 = 0.0413 = 4.13%You should deposit your money in Bank America.4.19 The price of the consol bond is the present value of the coupon payments. Apply theperpetuity formula to find the present value. PV = $120 / 0.15 = $8004.20 Quarterly interest rate = 12% / 4 = 3% = 0.03Therefore, the price of the security = $10 / 0.03 = $333.334.21 The price at the end of 19 quarters (or 4.75 years) from today = $1 / (0.15 ÷ 4) = $26.67The current price = $26.67 / [1+ (.15 / 4)]19 = $13.254.22 a. $1,000 / 0.1 = $10,000b. $500 / 0.1 = $5,000 is the value one year from now of the perpetual stream. Thus,the value of the perpetuity is $5,000 / 1.1 = $4,545.45.c. $2,420 / 0.1 = $24,200 is the value two years from now of the perpetual stream.Thus, the value of the perpetuity is $24,200 / 1.12 = $20,000.4.23 The value at t = 8 is $120 / 0.1 = $1,200.Thus, the value at t = 5 is $1,200 / 1.13 = $901.58.4.24 P = $3 (1.05) / (0.12 - 0.05) = $45.004.25 P = $1 / (0.1 - 0.04) = $16.674.26 The first cash flow will be generated 2 years from today.The value at the end of 1 year from today = $200,000 / (0.1 - 0.05) = $4,000,000.Thus, PV = $4,000,000 / 1.1 = $3,636,363.64.4.27 A zero NPV-$100,000 + $50,000 / r = 0-r = 0.54.28 Apply the NPV technique. Since the inflows are an annuity you can use the present valueof an annuity factor.NPV = -$6,200 + $1,200 8A1.0= -$6,200 + $1,200 (5.3349)= $201.88Yes, you should buy the asset.4.29 Use an annuity factor to compute the value two years from today of the twenty payments.Remember, the annuity formula gives you the value of the stream one year before the first payment. Hence, the annuity factor will give you the value at the end of year two of the stream of payments. Value at the end of year two = $2,000 20A08.0= $2,000 (9.8181)= $19,636.20The present value is simply that amount discounted back two years.PV = $19,636.20 / 1.082 = $16,834.884.30 The value of annuity at the end of year five= $500 15A = $500 (5.84737) = $2,923.6915.0The present value = $2,923.69 / 1.125 = $1,658.984.31 The easiest way to do this problem is to use the annuity factor. The annuity factor must beequal to $12,800 / $2,000 = 6.4; remember PV =C A t r. The annuity factors are in theappendix to the text. To use the factor table to solve this problem, scan across the rowlabeled 10 years until you find 6.4. It is close to the factor for 9%, 6.4177. Thus, the rate you will receive on this note is slightly more than 9%.You can find a more precise answer by interpolating between nine and ten percent.10% ⎤ 6.1446 ⎤a ⎡ r ⎥bc ⎡ 6.4 ⎪ d⎣ 9% ⎦⎣ 6.4177 ⎦By interpolating, you are presuming that the ratio of a to b is equal to the ratio of c to d.(9 - r ) / (9 - 10) = (6.4177 - 6.4 ) / (6.4177 - 6.1446)r = 9.0648%The exact value could be obtained by solving the annuity formula for the interest rate.Sophisticated calculators can compute the rate directly as 9.0626%.公司理财习题答案第四章4.32 a. The annuity amount can be computed by first calculating the PV of the $25,000which you need in five years. That amount is $17,824.65 [= $25,000 / 1.075].Next compute the annuity which has the same present value.$17,824.65 = C 5A.007$17,824.65 = C (4.1002)C = $4,347.26Thus, putting $4,347.26 into the 7% account each year will provide $25,000 fiveyears from today.b. The lump sum payment must be the present value of the $25,000, i.e., $25,000 /1.075 = $17,824.65The formula for future value of any annuity can be used to solve the problem (seefootnote 14 of the text).4.33The amount of loan is $120,000 ⨯ 0.85 = $102,000.20C A= $102,000.010The amount of equal installments isC = $102,000 / 20A = $102,000 / 8.513564 = $11,980.8810.04.34 The present value of salary is $5,000 36A = $150,537.53.001The present value of bonus is $10,000 3A = $23,740.42 (EAR = 12.68% is used since.01268bonuses are paid annually.)The present value of the contract = $150,537.53 + $23,740.42 = $174,277.944.35 The amount of loan is $15,000 ⨯ 0.8 = $12,000.C 48A = $12,0000067.0The amount of monthly installments isC = $12,000 / 48A = $12,000 / 40.96191 = $292.960067.04.36 Option one: This cash flow is an annuity due. To value it, you must use the after-taxamounts. The after-tax payment is $160,000 (1 - 0.28) = $115,200. Value all except the first payment using the standard annuity formula, then add back the first payment of$115,200 to obtain the value of this option.Value = $115,200 + $115,200 30A10.0= $115,200 + $115,200 (9.4269)= $1,201,178.88Option two: This option is valued similarly. You are able to have $446,000 now; this is already on an after-tax basis. You will receive an annuity of $101,055 for each of the next thirty years. Those payments are taxable when you receive them, so your after-taxpayment is $72,759.60 [= $101,055 (1 - 0.28)].Value = $446,000 + $72,759.60 30A.010= $446,000 + $72,759.60 (9.4269)= $1,131,897.47Since option one has a higher PV, you should choose it.4.37 The amount of loan is $9,000. The monthly payment C is given by solving the equation: C 60008.0A = $9,000 C = $9,000 / 47.5042 = $189.46In October 2000, Susan Chao has 35 (= 12 ⨯ 5 - 25) monthly payments left, including the one due in October 2000.Therefore, the balance of the loan on November 1, 2000 = $189.46 + $189.46 34008.0A = $189.46 + $189.46 (29.6651) = $5,809.81Thus, the total amount of payoff = 1.01 ($5,809.81) = $5,867.91 4.38 Let r be the rate of interest you must earn. $10,000(1 + r)12 = $80,000 (1 + r)12 = 8 r = 0.18921 = 18.921%4.39 First compute the present value of all the payments you must make for your children’s education. The value as of one year before matriculation of one child’s education is$21,000 415.0A= $21,000 (2.8550) = $59,955. This is the value of the elder child’s education fourteen years from now. It is the value of the younger child’s education sixteen years from today. The present value of these is PV = $59,955 / 1.1514 + $59,955 / 1.1516 = $14,880.44You want to make fifteen equal payments into an account that yields 15% so that the present value of the equal payments is $14,880.44. Payment = $14,880.44 / 1515.0A = $14,880.44 / 5.8474 = $2,544.804.40 The NPV of the policy isNPV = -$750 306.0A - $800306.0A / 1.063 + $250,000 / [(1.066) (1.0759)] = -$2,004.76 - $1,795.45 + $3,254.33= -$545.88 Therefore, you should not buy the policy.4.41 The NPV of the lease offer isNPV = $120,000 - $15,000 - $15,000 908.0A - $25,000 / 1.0810= $105,000 - $93,703.32 - $11,579.84 = -$283.16 Therefore, you should not accept the offer.4.42 This problem applies the growing annuity formula. The first payment is $50,000(1.04)2(0.02) = $1,081.60. PV = $1,081.60 [1 / (0.08 - 0.04) - {1 / (0.08 - 0.04)}{1.04 / 1.08}40]= $21,064.28 This is the present value of the payments, so the value forty years from today is $21,064.28 (1.0840) = $457,611.46公司理财习题答案第四章4.43 Use the discount factors to discount the individual cash flows. Then compute the NPV ofthe project. Notice that the four $1,000 cash flows form an annuity. You can still use the factor tables to compute their PV. Essentially, they form cash flows that are a six year annuity less a two year annuity. Thus, the appropriate annuity factor to use with them is 2.6198 (= 4.3553 - 1.7355).Year Cash Flow Factor PV 1 $700 0.9091 $636.37 2 900 0.8264 743.76 3 1,000 ⎤ 4 1,000 ⎥ 2.6198 2,619.80 5 1,000 ⎥ 6 1,000 ⎦ 7 1,250 0.5132 641.50 8 1,375 0.4665 641.44 Total $5,282.87NPV = -$5,000 + $5,282.87 = $282.87 Purchase the machine.4.44 Weekly inflation rate = 0.039 / 52 = 0.00075 Weekly interest rate = 0.104 / 52 = 0.002 PV = $5 [1 / (0.002 - 0.00075)] {1 – [(1 + 0.00075) / (1 + 0.002)]52 ⨯ 30} = $3,429.384.45 Engineer:NPV = -$12,000 405.0A + $20,000 / 1.055 + $25,000 / 1.056 - $15,000 / 1.057- $15,000 / 1.058 + $40,000 2505.0A / 1.058= $352,533.35 Accountant:NPV = -$13,000 405.0A + $31,000 3005.0A / 1.054= $345,958.81 Become an engineer.After your brother announces that the appropriate discount rate is 6%, you can recalculate the NPVs. Calculate them the same way as above except using the 6% discount rate. Engineer NPV = $292,419.47 Accountant NPV = $292,947.04Your brother made a poor decision. At a 6% rate, he should study accounting.4.46 Since Goose receives his first payment on July 1 and all payments in one year intervalsfrom July 1, the easiest approach to this problem is to discount the cash flows to July 1 then use the six month discount rate (0.044) to discount them the additional six months. PV = $875,000 / (1.044) + $650,000 / (1.044)(1.09) + $800,000 / (1.044)(1.092) + $1,000,000 / (1.044)(1.093) + $1,000,000/(1.044)(1.094) + $300,000 / (1.044)(1.095)+ $240,000 1709.0A / (1.044)(1.095) + $125,000 1009.0A / (1.044)(1.0922) = $5,051,150Remember that the use of annuity factors to discount the deferred payments yields the value of the annuity stream one period prior to the first payment. Thus, the annuity factor applied to the first set of deferred payments gives the value of those payments on July 1 of 1989. Discounting by 9% for five years brings the value to July 1, 1984. The use of the six month discount rate (4.4%) brings the value of the payments to January 1, 1984. Similarly, the annuity factor applied to the second set of deferred payments yields the value of those payments in 2006. Discounting for 22 years at 9% and for six months at 4.4% provides the value at January 1, 1984.The equivalent five-year, annual salary is the annuity that solves: $5,051,150 = C 509.0A C = $5,051,150/3.8897C = $1,298,596The student must be aware of possible rounding errors in this problem. The differencebetween 4.4% semiannual and 9.0% and for six months at 4.4% provides the value at January 1, 1984. 4.47 PV = $10,000 + ($35,000 + $3,500) [1 / (0.12 - 0.04)] [1 - (1.04 / 1.12) 25 ]= $415,783.604.48 NPV = -$40,000 + $10,000 [1 / (0.10 - 0.07)] [1 - (1.07 / 1.10)5 ] = $3,041.91 Revise the textbook.4.49The amount of the loan is $400,000 (0.8) = $320,000 The monthly payment is C = $320,000 / 3600067.0.0A = $ 2,348.10 Thirty years of payments $ 2,348.10 (360) = $ 845,316.00 Eight years of payments $2,348.10 (96) = $225,417.60 The difference is the balloon payment of $619,898.404.50 The lease payment is an annuity in advanceC + C 2301.0A = $4,000 C (1 + 20.4558) = $4,000 C = $186.424.51 The effective annual interest rate is[ 1 + (0.08 / 4) ] 4 – 1 = 0.0824The present value of the ten-year annuity is PV = 900 100824.0A = $5,974.24 Four remaining discount periodsPV = $5,974.24 / (1.0824) 4 = $4,352.43公司理财习题答案第四章4.52The present value of Ernie’s retirement incomePV = $300,000 20A / (1.07) 30 = $417,511.5407.0The present value of the cabinPV = $350,000 / (1.07) 10 = $177,922.25The present value of his savingsPV = $40,000 10A = $280,943.26.007In present value terms he must save an additional $313,490.53 In future value termsFV = $313,490.53 (1.07) 10 = $616,683.32He must saveC = $616.683.32 / 20A = $58,210.5407.0。
公共部门经济学(双语)教案
《公共部门经济学（双语）》（07115020）课程教案甘行琼、胡洪曙一、授课对象本课程适用于财政学专业、税收专业的大三以上学生学习，在学习本课程之前应先学习大学英语、西方经济学、财政学等课程。
课时方面应设置3学分51课时。
三、教材使用情况《Public Finance: A Contemporary Application of Theory to Policy》（第八版），David N. Hyman著，北京大学出版社，2005年7月。
四、教学手段主要采取讲授与案例教学，全部课程采用多媒体。
五、参考资料1．《Public Finance》(第七版)，Harvey S. Rosen著，清华大学出版社，2005年8月。
2．《Public Finance in Theory and Practice》，Holley H. Ulbrich著，清华大学出版社，2004年3月。
六、教学内容安排Chapter 1 Individuals and Government教学目标：After studying this chapter, the students should be able to:1. Use a production-possibility curve to explain the trade- off between private goods and services and government goods and services.2. Describe how the provision of government goods and services through political institutions differs from market provision of goods and services and how government affects the circular flow of income and expenditure in a mixed economy.3. Discuss the various categories of federal, state, and local government expenditures in the United States and the way those expenditures are financed.内容提要：Public finance is the field of economics that studies government activities and alternative means of financing government expenditures. Modern public finance emphasizes the relationships between citizens and governments. Government goods and services are supplied through political institutions, which employ rules and procedures that have evolved in different societies for arriving at collective choices. Government goods and services are usually made available without charge for their use, and they are financed by compulsory payments (mainly taxes) levied on citizens and their activities. A major goal in the study of public finance is to analyze the economic role of government and the costs and benefits of allocating resources to government use as opposed to allowing private enterprise and households to use those resources.重点难点：The allocation of resources between government and private use; The structure of state and local government expenditure; Market failure and the functions of government: how much government is enough? Government transfer payments; Nonmarket rationing.有关提示：这一部分是公共部门经济学的引言部分，应让学生明白公共部门和私人部门的区别，以及他们各自是如何配置资源的，另外也要熟悉美国政府支出的增长情况。
Public Finance-Harvey Rosen-Chapter 14_13
Current Debates on Taxes
国五条：新国五条加税部分应由房屋卖方 承担（住建部副部长） 营改增：减税还是减少逃税？ 网购征税：《市场公平法案》 邮政份子钱：国家拟向快递企业收取专项 基金，补贴邮政普遍服务。
14-6
Categories of Taxes
Neglects general equilibrium price effects
Tax might be shifted onto workers If capital taxes leads to less savings, then capital stock may decline, driving return to capital up and wages down Some argue that capital taxes are paid by workers and therefore increase income inequality
14-10
Partial Equilibrium Model: Setup
Government levies an excise tax on good x
Excise or specific tax: levied on a quantity (e.g. gallon, pack, ton) Ad-valorem tax: fraction of prices (e.g. sales tax)
Consumer has wealth Z and has utility u(x, y ) Let εD denote the price elasticity of demand
Chapter_01(1)
思考题：
• 一、本次课要点：
个人语言、中文、非 summary 译文 • 二、你对本次课的个人看法：
学术理解、个人观点、教学建议
• 三、每章后习题：
理解习题并回答（中英文均可）
• 四、举例说明你的理解： 来源：媒体、网络、书本、个人经历、故事、 寓言或神话
Course syllabus
• Timetable and Classroom Monday(1-2), Building A, Room205 Friday(6-7), Building A, Room205 • Prerequisite Economics • Assessment Methods Two hour closed book exam in Jan. 2015. • Grading 50% Final exam; 20% Midterm exam; 30% Problem sets, including homework, classroom discussing, and answering questions.
参考书
1. （美）哈维 .S. 罗森，《财政学》( 第八版 ) ，郭庆旺 赵志耘译 ，中国人民大学出版社，2009.9 2. 蒋洪主编 刘虹 龚刚敏副主编 《财政学》（第二版） 高等 教育出版社 2004.8。 3. 钟晓敏主编 《财政学》 高等教育出版社 2010.3 4. (美)施密特 谢利 巴迪斯 著 梅然 译 《美国政府与政治 》 北京大学出版社 2005.1 5. 詹姆斯 .M. 布坎南 《公共财政》 赵锡军等译 中国财政经济出 版社 1991.12 6. （美）理查.A.穆斯格雷夫，《美国财政理论与实践》，第四版 ，邓子基等译，中国财政经济出版社，1987 7. （美）鲍德威、威迪逊，《公共部门经济学》，第二版，邓力 平主译，中国人民大学出版社，2000 8. 《财政研究》、《税务研究》、人大复印资料《财政与税务》 等杂志 9. 上海财经大学每年出版的《中国财政发展报告》 10. 财政部、国家税务总局、国家统计局等网站 11. （美）斯塔夫里阿诺斯 著 吴象婴等译《全球通史》北京大学 出版社 2014年5月第37次印刷
Chap10公共部门经济学经济学原理曼昆中英文双语
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
The Market for Aluminum and Welfare Economics
Examples of Negative Externalities 负外部性例子
u Automobile exhaust 汽车尾气 u Cigarette smoking 吸烟 u Barking dogs (loud pets) 狂叫的狗 u Loud stereos in an apartment building
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Positive Externalities 正外部性
When an externality benefits the bystanders, a positive externality exists. 当外部性有利于旁观者时，就存在正外 部性。
Supply (private cost） 供给（ 私人成本)
Equilibrium 均衡
0
QMARKE
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. T
Demand (private value） 需求（私人价值)
Demand
(private value ）
需求（私人价值)
产量Quantity of Aluminum
国际金融Chapter_10_FINA_4315_for_student
国际金融Chapter_10_FINA_4315_for_studentChapter 103. Factors That Affect a Firm’s Transaction Exposure. What factors affect a firm’s degree oftransaction exposure in a particular currency? For each factor, explain the desirable characteristics that would reduce transaction exposure.4. Currency Correlations. Kopetsky Co. has net receivables in several currencies that are highlycorrelated with each other. What does this imply about the firm’s overall degree of transactionexposure? Are currency correlations perfectly stable over time? What does your answer imply about Kopetsky Co. or any other firm using past data on correlations as an indicator for the future?5. Currency Effects on Cash Flows. How should appreciation of a firm’s home currency generallyaffect its cash inflows? How s hould depreciation of a firm’s home currency generally affect its cash outflows?6. Transaction Exposure. Fischer Inc., exports products from Florida to Europe. It obtains suppliesand borrows funds locally. How would appreciation of the euro likely affect its net cash flows? Why?7. Exposure of Domestic Firms. Why are the cash flows of a purely domestic firm exposed toexchange rate fluctuations?8. Measuring Economic Exposure. Memphis Co. hires you asa consultant to assess its degree ofeconomic exposure to exchange rate fluctuations. Howwould you handle this task? Be specific.9. Factors That Affect a Firm’s Translation Exposure. What factors affect a firm’s degree oftranslation exposure? Explain how each factor influences translation exposure.10. Translation Exposure. Consider a period in which the U.S. dollar weakens against the euro. Howwill this affect the reported earnings of a U.S.-based MNC with European subsidiaries? Consider a period in which the U.S. dollar strengthens against most foreign currencies. How will this affect the reported earnings of a U.S.-based MNC with subsidiaries all over the world?12. Economic Exposure. Longhorn Co. produces hospital equipment. Most of its revenues are in theUnited States. About half of its expenses require outflows in Philippine pesos (to pay for Philippine materials). Most of Longhorn’s competition is from U.S. firms that have no international business at all. How will Longhorn Co. be affected if the peso strengthens?13. Economic Exposure. Lubbock, Inc., produces furniture and has no international business. Its majorcompetitors import most of their furniture from Brazil and then sell it out of retail stores in the United States. How will Lubbock, Inc., be affected if Br azil’s currency (the real) strengthens over time?.15. PPP and Economic Exposure. Boulder, Inc., exports chairs to Europe (invoiced in U.S. dollars) andcompetes against local European companies. If purchasing power parity exists, why would Boulder not benefit from astronger euro?17. Impact of Exchange Rates on Earnings. Cieplak, Inc., is a U.S.-based MNC that has expanded intoAsia. Its U.S. parent exports to some Asian countries, with its exports denominated in the Asiancurrencies. It also has a large subsidiary in Malaysia that serves that market. Offer at least tworeasons related to exposure to exchange rates why Cieplak's earnings were reduced during the Asian crisis.Advanced Questions18. Speculating Based on Exposure. During the Asian crisis in 1998, there were rumors that Chinawould weaken its currency (the yuan) against the U.S. dollar and many European currencies. This caused investors to sell stocks in Asian countries such as Japan, Taiwan, and Singapore. Offer an intuitive explanation for such an effect. What types of Asian firms would have been affected the most?19. Comparing Transaction and Economic Exposure. Erie Co. has most of its business in the U.S.,except that it exports to Belgium. Its exports were invoiced in euros (Be lgium’s currency) last year. It has no other economic exposure to exchange rate risk. Its main competition when selling toBelgium’s customers is a company in Belgium that sells similar products, denominated in euros.Starting today, Erie Co. plans to adjust its pricing strategy to invoice its exports in U.S. dollarsinstead of euros. Based on the new strategy, will Erie Co. be subject to economic exposure toexchange rate risk in the future? Briefly explain.20. Using Regression Analysis to Measure Exposure.a. How can a U.S. company use regression analysis to assess its economic exposure to fluctuationsin the British pound?b. In using regression analysis to assess the sensitivity of cash flows to exchange rate movements,what is the purpose of breaking the database into sub periods?c. Assume the regression coefficient based on assessing economic exposure was much higher inthe second sub period than in the first sub period. What does this tell you about the firm’sdegree of economic exposure over time? Why might such results occur?21. Transaction Exposure. Vegas Corp. is a U.S. firm that exports most of its products to Canada. Ithistorically invoiced its products in Canadian dollars to accommodate the importers. However, it was adversely affected when the Canadian dollar weakened against the U.S. dollar. Since Vegas did not hedge, its Canadian dollar receivables were converted into a relatively small amount of U.S. dollars.After a few more years of continual concern about possible exchange rate movements, Vegas called its customers and requested that they pay for future orders with U.S. dollars instead of Canadian dollars. At this time, the Canadian dollar was valued at $.81. The customers decided to oblige, since the number of Canadian dollars to be converted into U.S. dollars when importing the goods from Vegas was still slightly smaller than the number of Canadian dollars that would be needed to buy the product from a Canadian manufacturer. Based on this situation,has transaction exposure changed for Vegas Corp.? Has economic exposure changed? Explain.23. Changes in Economic Exposure. Walt Disney World built an amusement park in France that openedin 1992. How do you think this project has affected Disney’s economic ex posure to exchange rate movements? Think carefully before you give your final answer. There is more than one way in which Disney’s cash flows may be affected. Explain.24. Lagged Effects of Exchange Rate Movements. Cornhusker Co. is an exporter of products toSingapore. It wants to know how its stock price is affected by changes in the Singapore dollar’sexchange rate. It believes that the impact may occur with a lag of one to three quarters. How could regression analysis be used to assess the impact?27. Exposure to Cash Flows. Raton Co. is a U.S. company that has net inflows of 100 million Swiss francs and net outflows of 100 million British pounds. The present exchange rate of the Swiss franc is about $.70 while the present exchange rate of the pound is $1.90. Raton Co. has not hedged these positions. The Swiss franc and British pound are highly correlated in their movements against the dollar. Explain whether Raton will be favorably or adversely affected if the dollar weakens against foreign currencies over time.28. Assessing Exchange Rate Risk. Washington Co. and Vermont Co. have no domestic business.They have a similar dollar equivalent amount of international exporting business. Washington Co.exports all of its products to Canada. Vermont Co. exports its products to Poland and Mexico, with about half of its business ineach of these 2 countries. Each firm receives the currency of the country where it sends its exports. You obtain the end-of-month spot exchange rates of the currenciesmentioned above during the end of each of the last 6 months.End of Month Canadian Dollar Mexican Peso Polish Zloty1 $0.8142 $.09334 $.299142 0.8176 .09437 .298293 0.8395 .09241 .301874 0.8542 .09263 .30885 0.8501 .09251 .302746 0.8556 .09448 .30312You want to assess the data in a logical manner to determine which firm has a higher degree ofexchange rate risk. Show your work and write your conclusion. [HINT: The percentage change in the portfolio of currencies is a weighted average of the percentage change in each currency in theportfolio.29. Exposure to Pegged Currency System. Assume that the Mexican peso and the Braziliancurrency (called the “real”) have depreciated against the dollar recently, due to the high inflation rates in those countries. Assume that inflation in these two countries is expected to continue and that it will have a major effect on these currencies if they are still allowed to float. Assume that the government of Brazil decides to peg its currency to the dollar and will definitely maintain the peg for the next year.Milez Co. is based in Mexico. Its main business is to export supplies from Mexico to Brazil. Itinvoices its supplies in Mexican pesos. Its main competition is from firms in Brazil that producesimilar supplies and sell them locally. How will the sales volume of Milez Co.be affected (if at all) by the Brazilian government’s actions? Explain.33. Applying the Value-at-Risk Method. You use today’s spot rate of the Brazilian real to forecastthe spot ra te of the real for one month ahead. Today’s spot rate is $.4558. Use the value-at-riskmethod to determine the maximum percentage loss of the Brazilian real over the next month based ona 95 percent confidence level. Use the spot exchange rates at the end of each of the last 6 months asshown below to conduct your analysis. Forecast the exchange rate that would exist under theseconditions.35. Cross-Currency Relationships. The Hong Kong dollar (HK$) is presently pegged to the U.S.dollar and is expected to remain pegged. Some Hong Kong firms export products to Australia that are denominated in Australian dollars and have no other business in Australia. The exports are nothedged. The Australian dollar is presently worth 0.50 U.S. dollars but you expect that it will be worth0.45 U.S. dollars by the end of the year. Based on your expectations, will the Hong Kong exporters beaffected favorably or unfavorably? Briefly explain.37. Assessing Translation Exposure. Assume the euro’s spot rate is pres ently equal to $1.00. All ofthe following firms are based in New York and are the samesize. While these firms concentrate on business in the U.S., their entire foreign operations for this quarter are provided here.Company A expects its exports to cause cash inflows of 9 million euros and imports to cause cash outflows equal to 3 million euros.Company B has a subsidiary in Portugal that expects revenue of 5 million euros and has expenses of 1 million euros.Company C expects exports to cause cash inflows of 9 million euros and imports to cause cashoutflows of 3 million euros, and will repay the balance of an existing loan equal to 2 million euros.Company D expects zero exports and imports to cause cash outflows of 11 million euros.Company E will repay the balance of an existing loan equal to 9 million euros.Which of the five companies described here has the highest degree of translation exposure?38. Exchange Rates and Market Share. Minnesota Co. is a U.S. firm that exports computer parts toJapan. Its main competition is from firms that are based in Japan, which invoice their products in yen.Minnesota’s exports are invoiced in U.S. dollars. The prices charged by Minnesota and itscompetitors will not change during the next year. Will Minnesota’s revenue increase, decrease, or be unaffected if the spot rate of the yen appreciates over the next year? Briefly explain.39. Exchange Rates and Market Share. Harz Co. (a U.S. firm) has an arrangement with a Chinesecompany in which it purchases the products from them every week at the prevailing spot rate, and then sells the products inthe U.S. invoiced in dollars. All of its competition is from U.S. firms that have no international business. The prices charged by Harz and its competitors will not change over the next year. Will the net cash flows generated by Harz increase, decrease, or be unaffected if the Chinese yuan depreciates over the next year? Briefly explain.41. PPP and Exposure. Layton Co. (a U.S. firm) attempts to determine its economic exposure tomovements in the Japanese yen, by applying regression analysis to data over the last 36 quarters: SP = b0 + b1e + u where SP represents the percentage change in Layton’s stock price per quarter, e represents thepercentage change in the yen value per quarter, and u is an error term. Based on the analysis, the b0 coefficient is zero and the b1 coefficient is 0.4 and is statistically significant. Layton believes that the inflation differential has a major effect on the value of the yen (based on purchasing power parity).The inflation in Japan is expected to rise substantially while the U.S. inflation will remain at a low level. Would you expect that Layton’s value will be favorably affected, unfavorably affected, or not affected by its economic exposure over the next quarter? Explain.42. Exposure to Cash Flows. Lance Co. is a U.S. company that has exposure to the Swiss francs (SF)and Danish kroner (DK). It has net inflows of SF100 million and net outflows of DK500 million. The present exchange rate of the SF is about $.80 while the present exchange rate of the DK is $.10. Lance Co. has not hedged these positions. The SF and DK are highly correlated in theirmovements against the dollar. Explain whether Lance will befavorably or adversely affected if the dollar strengthens against foreign currencies over time.43. Assessing Transaction Exposure. Zebra Co. is a U.S. firm that obtains products from a U.S.supplier and then exports them to Canadian firms. Its exports are denominated in U.S. dollars. Its main competitor is a local company in Canada that sells similar products denominated in Canadian dollars. Is Zebra subject to transaction exposure? Briefly explain.ANSWER: No, because Zebra’s cash flows are denom inated in home currency. They will not be affected by exchange rate fluctuations.44. Assessing Translation Exposure. Quartz Co. has its entire operations in Miami, Florida, and isan exporter of products to Eurozone countries. All of its earnings are derived from its exports. The exports are denominated in euros. Reed Co. (of the U.S.) is about the same size as Quartz Co. and generates about the same amount of earnings in a typical year. It has a subsidiary in Germany that typically generates about 40 percent of its total earnings. All earnings are reinvested in Germany and therefore not remitted. The rest of Reed’s business is in the U.S. Which company has a higher degree of translation exposure? Briefly explain.ANSWER: Reed Co. has a higher degree o f translation exposure because its foreign subsidiary’s financial statements (including earnings) must be translated into U.S. dollars. Quartz does not have translation exposure.45. Estimating Value at Risk. Yazoo Inc. is a U.S. firm that has substantial international business inJapan and has cash inflows in Japanese yen. The spot rate ofthe yen today is $.01. The yen exchange rate was $.008 three months ago, $.0085 two months ago, and $.009 one month ago. Yazoo uses today’s sp ot rate of the yen as its forecast of the spot rate in one month. However, it wants todetermine the maximum expected percentage decline in the value of the Japanese yen in one month based on the value at risk (VaR) method and a 95 percent probability. Use the exchange rateinformation provided to derive the maximum expected decline in the yen over the next month.ANSWER: Applying an electronic spreadsheet, the standard deviation of the yen movements is about .029185.Maximum expected percentage decline in yen is:= Forecasted % change – (1.65 x Standard Deviation of yen movements)= 0 – (1.65 x .029185) = -.04815546. Assessing Exposure to Net Cash Flows. Reese Co. will pay 1 million British pounds for materialsimported from the U.K. in one month. Reese Co. sells some goods to Poland, and will receive 3 million zloty (the Polish currency) for those goods in one month. The spot rate of the pound is $1.50, while the spot rate of the zloty is about $.30. Assume that the pound and zloty are both expected to depreciate substantially against the dollar over the next month and by the same degree (percentage).Will this have a favorable effect, unfavorable effect or no effect on Reese Co. over the next year?Explain.ANSWER: The dollar value of the outflow exposure to pounds is greater than the inflow exposure to zloty. If both currenciesdepreciate, Reese Co. will benefit because the favorable effect on the outflows should exceed the unfavorable effect on the inflows.。
Lec01-效率与公平：福利经济学两大定理
• 大快人心事——废除农业税 • “据报道，中国立法机关２９日表决通过决定，在中国存在２６
００年的农业税自２００６年１月１日起废止。我作为一个农民 的儿子真得为这项决定拍手叫好！” • 废止农业税表示党为推进以工补农、以城带乡，适时调整国民收 入分配格局正在形成，从历史发展的层面上讲，依法取消农业税 非常必要，非常及时。因为只有彻底废止农业税，才能真正减轻 农民负担，增加农民收入，推进社会主义新农村建设的重要举 措。
• 来源：/news/20060210_2119_12425.htm
• 教育财政支出的不平等是中国当前城乡 教育不平等的一个重要原因：
• 2001年，全国小学的生均预算内公用经 费，城镇平均是95元，农村为28元，城 镇是农村的3.39倍。初中的生均预算内 公用经费，城镇平均是146元，农村为 45元，城镇是农村的3.24倍。
福利经济学第一定理
交换效率条件
r
y
每
年
无
花
v
果u
叶
埃奇沃斯框图内
O’夏娃
的任意一点，表
示苹果和无花果叶在亚当和夏娃w之间的某种配置。
s
O
x
亚当
每年苹果
埃奇沃斯框图的长度为Os，表示经济中现有的苹果数，Or表示无花 18
© copyrights by Minggao Shen 2003. CCER, Peking University.
代表述。
福利经济学第一定理
• 帕累托最优是评判资源配置是否有效的重要标 准；
• 帕累托最优原则可以表现为一些特别的条件， 即所谓的效率条件，实际经济中有效的资源配 置必须满足这些条件；
• 我们先关注静态经济，在这些经济模型中，效 率条件可以区分为交换效率、生产效率以及总 体经济效率条件；
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
Other Government Payments (13%) Private Health Insurance (35%)
Medicaid and SCHIP (16%)
Medicare (17%) Other Private Payments (7%) Out-of-Pocket Payments (13%)
10-14
Medicare: Impacts on Spending and Health
Expenditures on health care for the elderly Health outcomes
Studies:
State variations before the plan: control for time trend Regression discontinuity: elderly and nearelderly. No impact
10-16
Figure 10.4: Medicaid expenditures (1966-2004)
350 3
Real Expenditures (2004 $ Billions)
300
2.5
250 2 200 1.5 150 1 100 0.5
50
0 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
Job lock Health Insurance Policy Portability and Accountability Act of 1996 (KennedyKassenbaum Act) Financial burden on the firm’s side. Greater inequality between the employed and the unemployed.
10-20
Does Public Insurance Crowd Out Private Insurance?
Quantity of all other goods Quantity of all other goods
Quantity of all other goods
F
A
F
A
F
A
B
B
B
C 0 M 0
SOURCE: Centers for Medicare and Medicaid Services [2005a].
10-6
Figure 10.1: Uses of health care funds in the United States (2004)
Other (10% ) Research (2% ) Public Health Activity (3% ) Administrative (7% ) Hospital Care (32% )
Benefits
Part A – Hospital insurance (HI)
Part B – Supplementary medical insurance (SMI) Payroll tax funds HI
General revenues fund SMI
Financing
10-13
Nursing Home Care (6% )
Prescription Drugs (11% ) Home Health Care (3% ) Dental Services (4% ) Physician and Clinical Services (22% )
SOURCE: Centers for Medicare and Medicaid Services [2005a].
10-19
Problem
Low take-up rate: only 5-25% of the eligible took up the benefits. Information problem or social stigma?
Crowding out of private transfers.
0
Year Expenditures (Billions $)
SOURCE: Centers for Medicare and Medicaid Services [2005a].
Expenditures as % GDP
10-17
Expenditures as % GDP
Financing and Administration
Prescription Drug Benefit
Part C – Medicare Advantage Part D – Prescription Drug Benefit
Monthly premium
Low deductible
Donut hole
Generous coverage for high costs
10-15
Medicaid: Overview
Medicaid: Low income families State Children’s Health Insurance Program: children with family income above the Medicaid limits.
Joint Federal-State financing State administration
10-18
Benefits
States obligated to offer minimum package of benefits States may offer more generous benefits State administrative flexibility
10-7
Private Health Insurance
The Implicit Subsidy for Employer-Provided Insurance
World War II era price controls Federal tax subsidy
10-8
The Advantages of Employer-Provided Health Insurance
Amount of publicly provided insurance
C M 0
Health insurance Amount of publicly provided insurance
C M
Health insurance
Health insurance Amount of publicly provided insurance
350 3
300
Real Expenditures (2004 $ Billions)
2.5
250 2 200
150
Expenditures on Real Medicare as a expenditures Share of GDP
1.5
1
100
on Medicare
50
0.5
0 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004
10-21
Problems with Health Care System
High cost Low efficiency Limited coverage
10-22
High Health Care Costs
Figure 9.5: Expenditures on health care as share of Gross Domestic Product, selected countries (1960-2004)
10-4
Figure 9.1: US expenditures of selected goods and services as share of Gross Domestic Product (19602004)
18 16 14
Percentage of GDP
12 10 8 6 4 2 0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 Year Health Food Clothing and Shoes Housing
10-10
Government-Provided Health Insurance
Government license physicians, monitor health threats, owns some hospitals, sponsor researches
Government also implements insurance program
CHAPTER 10
GOVERNMENT AND THE MARKET FOR HEALTH CARE
McGraw-Hill/Irwin
Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Health Care System
0
Year
Expenditures (Billions $) Expenditures as % of GDP
Expenditures as % GDP