Chapter_09CapitalBudgetingandRisk公司理财原理
公司理财Chap9
9.4 Diversification
Expected (Normal) vs. Uncertain (Risky) Returns
Realized returns are generally not equal to expected returns. There is the expected component and the unexpected component. At any point in time, the unexpected return can be either positive or negative. Over time, the average of the unexpected component is zero.
Cov( RA , RB ) E ( RA E ( RA ))(RB E ( RB )) (20% 17.5%) (5% 5.5%) 25% (10% 17.5%) (20% 5.5%) 25% (30% 17.5%) (12% 5.5%) 25% (50% 17.5%) (9% 5.5%) 25% 0.004875 Cov( RA , RB ) 0.004875 Corr( RA , RB ) 0.1639 SD( RA ) SD( RB ) 0.2586 0.115
The Diversification Effect
Observe the decrease in risk that diversification offers.
WASD wA SD( RA ) wB SD( RB ) 60% 25.86% 40% 11.5% 20.12%
SD( portfolio) Var ( portfolio) 0.023851 15.44%
罗斯《公司理财》(第9版)课后习题(第1~3章)【圣才出品】
罗斯《公司理财》（第9版）课后习题第1章公司理财导论一、概念题1．资本预算（capital budgeting）答：资本预算是指综合反映投资资金来源与运用的预算，是为了获得未来产生现金流量的长期资产而现在投资支出的预算。
资本预算决策也称为长期投资决策，它是公司创造价值的主要方法。
资本预算决策一般指固定资产投资决策，耗资大，周期长，长期影响公司的产销能力和财务状况，决策正确与否影响公司的生存与发展。
完整的资本预算过程包括：寻找增长机会，制定长期投资战略，预测投资项目的现金流，分析评估投资项目，控制投资项目的执行情况。
资本预算可通过不同的资本预算方法来解决，如回收期法、净现值法和内部收益率法等。
2．货币市场（money markets）答：货币市场指期限不超过一年的资金借贷和短期有价证券交易的金融市场，亦称“短期金融市场”或“短期资金市场”，包括同业拆借市场、银行短期存贷市场、票据市场、短期证券市场、大额可转让存单市场、回购协议市场等。
其参加者为各种政府机构、各种银行和非银行金融机构及公司等。
货币市场具有四个基本特征：①融资期限短，一般在一年以内，最短的只有半天，主要用于满足短期资金周转的需要；②流动性强，金融工具可以在市场上随时兑现，交易对象主要是期限短、流动性强、风险小的信用工具，如票据、存单等，这些工具变现能力强，近似于货币，可称为“准货币”，故称货币市场；③安全性高，由于货币市场上的交易大多采用即期交易，即成交后马上结清，通常不存在因成交与结算日之间时间相对过长而引起价格巨大波动的现象，对投资者来说，收益具有较大保障；④政策性明显，货币市场由货币当局直接参加，是中央银行同商业银行及其他金融机构的资金连接的主渠道，是国家利用货币政策工具调节全国金融活动的杠杆支点。
货币市场的交易主体是短期资金的供需者。
需求者是为了获得现实的支付手段，调节资金的流动性并保持必要的支付能力，供应者提供的资金也大多是短期临时闲置性的资金。
罗斯《公司理财》第9版英文原书课后部分章节答案
罗斯《公司理财》第9版精要版英文原书课后部分章节答案详细»1 / 17 CH5 11，13，18，19，20 11. To find the PV of a lump sum, we use: PV = FV / (1 + r) t PV = $1,000,000 / (1.10) 80 = $488.19 13. To answer this question, we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is: FV = PV(1 + r) t Solving for r, we get: r = (FV / PV) 1 / t –1 r = ($1,260,000 / $150) 1/112 – 1 = .0840 or 8.40% To find the FV of the first prize, we use: FV = PV(1 + r) t FV = $1,260,000(1.0840) 33 = $18,056,409.94 18. To find the FV of a lump sum, we use: FV = PV(1 + r) t FV = $4,000(1.11) 45 = $438,120.97 FV = $4,000(1.11) 35 = $154,299.40 Better start early! 19. We need to find the FV of a lump sum. However, the money will only be invested for six years, so the number of periods is six. FV = PV(1 + r) t FV = $20,000(1.084)6 = $32,449.33 20. To answer this question, we can use either the FV or the PV formula. Both will give the same answer since they are the inverse of each other. We will use the FV formula, that is: FV = PV(1 + r) t Solving for t, we get: t = ln(FV / PV) / ln(1 + r) t = ln($75,000 / $10,000) / ln(1.11) = 19.31 So, the money must be invested for 19.31 years. However, you will not receive the money for another two years. From now, you’ll wait: 2 years + 19.31 years = 21.31 years CH6 16，24，27，42，58 16. For this problem, we simply need to find the FV of a lump sum using the equation: FV = PV(1 + r) t 2 / 17 It is important to note that compounding occurs semiannually. To account for this, we will divide the interest rate by two (the number of compounding periods in a year), and multiply the number of periods by two. Doing so, we get: FV = $2,100[1 + (.084/2)] 34 = $8,505.93 24. This problem requires us to find the FV A. The equation to find the FV A is: FV A = C{[(1 + r) t – 1] / r} FV A = $300[{[1 + (.10/12) ] 360 – 1} / (.10/12)] = $678,146.38 27. The cash flows are annual and the compounding period is quarterly, so we need to calculate the EAR to make the interest rate comparable with the timing of the cash flows. Using the equation for the EAR, we get: EAR = [1 + (APR / m)] m – 1 EAR = [1 + (.11/4)] 4 – 1 = .1146 or 11.46% And now we use the EAR to find the PV of each cash flow as a lump sum and add them together: PV = $725 / 1.1146 + $980 / 1.1146 2 + $1,360 / 1.1146 4 = $2,320.36 42. The amount of principal paid on the loan is the PV of the monthly payments you make. So, the present value of the $1,150 monthly payments is: PV A = $1,150[(1 – {1 / [1 + (.0635/12)]} 360 ) / (.0635/12)] = $184,817.42 The monthly payments of $1,150 will amount to a principal payment of $184,817.42. The amount of principal you will still owe is: $240,000 – 184,817.42 = $55,182.58 This remaining principal amount will increase at the interest rate on the loan until the end of the loan period. So the balloon payment in 30 years, which is the FV of the remaining principal will be: Balloon payment = $55,182.58[1 + (.0635/12)] 360 = $368,936.54 58. To answer this question, we should find the PV of both options, and compare them. Since we are purchasing the car, the lowest PV is the best option. The PV of the leasing is simply the PV of the lease payments, plus the $99. The interest rate we would use for the leasing option is the same as the interest rate of the loan. The PV of leasing is: PV = $99 + $450{1 –[1 / (1 + .07/12) 12(3) ]} / (.07/12) = $14,672.91 The PV of purchasing the car is the current price of the car minus the PV of the resale price. The PV of the resale price is: PV = $23,000 / [1 + (.07/12)] 12(3) = $18,654.82 The PV of the decision to purchase is: $32,000 – 18,654.82 = $13,345.18 3 / 17 In this case, it is cheaper to buy the car than leasing it since the PV of the purchase cash flows is lower. To find the breakeven resale price, we need to find the resale price that makes the PV of the two options the same. In other words, the PV of the decision to buy should be: $32,000 – PV of resale price = $14,672.91 PV of resale price = $17,327.09 The resale price that would make the PV of the lease versus buy decision is the FV ofthis value, so: Breakeven resale price = $17,327.09[1 + (.07/12)] 12(3) = $21,363.01 CH7 3，18，21，22，31 3. The price of any bond is the PV of the interest payment, plus the PV of the par value. Notice this problem assumes an annual coupon. The price of the bond will be: P = $75({1 – [1/(1 + .0875)] 10 } / .0875) + $1,000[1 / (1 + .0875) 10 ] = $918.89 We would like to introduce shorthand notation here. Rather than write (or type, as the case may be) the entire equation for the PV of a lump sum, or the PV A equation, it is common to abbreviate the equations as: PVIF R,t = 1 / (1 + r) t which stands for Present V alue Interest Factor PVIFA R,t = ({1 – [1/(1 + r)] t } / r ) which stands for Present V alue Interest Factor of an Annuity These abbreviations are short hand notation for the equations in which the interest rate and the number of periods are substituted into the equation and solved. We will use this shorthand notation in remainder of the solutions key. 18. The bond price equation for this bond is: P 0 = $1,068 = $46(PVIFA R%,18 ) + $1,000(PVIF R%,18 ) Using a spreadsheet, financial calculator, or trial and error we find: R = 4.06% This is thesemiannual interest rate, so the YTM is: YTM = 2 4.06% = 8.12% The current yield is:Current yield = Annual coupon payment / Price = $92 / $1,068 = .0861 or 8.61% The effective annual yield is the same as the EAR, so using the EAR equation from the previous chapter: Effective annual yield = (1 + 0.0406) 2 – 1 = .0829 or 8.29% 20. Accrued interest is the coupon payment for the period times the fraction of the period that has passed since the last coupon payment. Since we have a semiannual coupon bond, the coupon payment per six months is one-half of the annual coupon payment. There are four months until the next coupon payment, so two months have passed since the last coupon payment. The accrued interest for the bond is: Accrued interest = $74/2 × 2/6 = $12.33 And we calculate the clean price as: 4 / 17 Clean price = Dirty price –Accrued interest = $968 –12.33 = $955.67 21. Accrued interest is the coupon payment for the period times the fraction of the period that has passed since the last coupon payment. Since we have a semiannual coupon bond, the coupon payment per six months is one-half of the annual coupon payment. There are two months until the next coupon payment, so four months have passed since the last coupon payment. The accrued interest for the bond is: Accrued interest = $68/2 × 4/6 = $22.67 And we calculate the dirty price as: Dirty price = Clean price + Accrued interest = $1,073 + 22.67 = $1,095.67 22. To find the number of years to maturity for the bond, we need to find the price of the bond. Since we already have the coupon rate, we can use the bond price equation, and solve for the number of years to maturity. We are given the current yield of the bond, so we can calculate the price as: Current yield = .0755 = $80/P 0 P 0 = $80/.0755 = $1,059.60 Now that we have the price of the bond, the bond price equation is: P = $1,059.60 = $80[(1 – (1/1.072) t ) / .072 ] + $1,000/1.072 t We can solve this equation for t as follows: $1,059.60(1.072) t = $1,111.11(1.072) t –1,111.11 + 1,000 111.11 = 51.51(1.072) t2.1570 = 1.072 t t = log 2.1570 / log 1.072 = 11.06 11 years The bond has 11 years to maturity.31. The price of any bond (or financial instrument) is the PV of the future cash flows. Even though Bond M makes different coupons payments, to find the price of the bond, we just find the PV of the cash flows. The PV of the cash flows for Bond M is: P M = $1,100(PVIFA 3.5%,16 )(PVIF 3.5%,12 ) + $1,400(PVIFA3.5%,12 )(PVIF 3.5%,28 ) + $20,000(PVIF 3.5%,40 ) P M = $19,018.78 Notice that for the coupon payments of $1,400, we found the PV A for the coupon payments, and then discounted the lump sum back to today. Bond N is a zero coupon bond with a $20,000 par value, therefore, the price of the bond is the PV of the par, or: P N = $20,000(PVIF3.5%,40 ) = $5,051.45 CH8 4，18，20，22，244. Using the constant growth model, we find the price of the stock today is: P 0 = D 1 / (R – g) = $3.04 / (.11 – .038) = $42.22 5 / 17 18. The price of a share of preferred stock is the dividend payment divided by the required return. We know the dividend payment in Year 20, so we can find the price of the stock in Y ear 19, one year before the first dividend payment. Doing so, we get: P 19 = $20.00 / .064 P 19 = $312.50 The price of the stock today is the PV of the stock price in the future, so the price today will be: P 0 = $312.50 / (1.064) 19 P 0 = $96.15 20. We can use the two-stage dividend growth model for this problem, which is: P 0 = [D 0 (1 + g 1 )/(R – g 1 )]{1 – [(1 + g 1 )/(1 + R)] T }+ [(1 + g 1 )/(1 + R)] T [D 0 (1 + g 2 )/(R –g 2 )] P0 = [$1.25(1.28)/(.13 –.28)][1 –(1.28/1.13) 8 ] + [(1.28)/(1.13)] 8 [$1.25(1.06)/(.13 – .06)] P 0 = $69.55 22. We are asked to find the dividend yield and capital gains yield for each of the stocks. All of the stocks have a 15 percent required return, which is the sum of the dividend yield and the capital gains yield. To find the components of the total return, we need to find the stock price for each stock. Using this stock price and the dividend, we can calculate the dividend yield. The capital gains yield for the stock will be the total return (required return) minus the dividend yield. W: P 0 = D 0 (1 + g) / (R – g) = $4.50(1.10)/(.19 – .10) = $55.00 Dividend yield = D 1 /P 0 = $4.50(1.10)/$55.00 = .09 or 9% Capital gains yield = .19 – .09 = .10 or 10% X: P 0 = D 0 (1 + g) / (R – g) = $4.50/(.19 – 0) = $23.68 Dividend yield = D 1 /P 0 = $4.50/$23.68 = .19 or 19% Capital gains yield = .19 – .19 = 0% Y: P 0 = D 0 (1 + g) / (R – g) = $4.50(1 – .05)/(.19 + .05) = $17.81 Dividend yield = D 1 /P 0 = $4.50(0.95)/$17.81 = .24 or 24% Capital gains yield = .19 – .24 = –.05 or –5% Z: P 2 = D 2 (1 + g) / (R – g) = D 0 (1 + g 1 ) 2 (1 +g 2 )/(R – g 2 ) = $4.50(1.20) 2 (1.12)/(.19 – .12) = $103.68 P 0 = $4.50 (1.20) / (1.19) + $4.50(1.20) 2 / (1.19) 2 + $103.68 / (1.19) 2 = $82.33 Dividend yield = D 1 /P 0 = $4.50(1.20)/$82.33 = .066 or 6.6% Capital gains yield = .19 – .066 = .124 or 12.4% In all cases, the required return is 19%, but the return is distributed differently between current income and capital gains. High growth stocks have an appreciable capital gains component but a relatively small current income yield; conversely, mature, negative-growth stocks provide a high current income but also price depreciation over time. 24. Here we have a stock with supernormal growth, but the dividend growth changes every year for the first four years. We can find the price of the stock in Y ear 3 since the dividend growth rate is constant after the third dividend. The price of the stock in Y ear 3 will be the dividend in Y ear 4, divided by the required return minus the constant dividend growth rate. So, the price in Y ear 3 will be: 6 / 17 P3 = $2.45(1.20)(1.15)(1.10)(1.05) / (.11 – .05) = $65.08 The price of the stock today will be the PV of the first three dividends, plus the PV of the stock price in Y ear 3, so: P 0 = $2.45(1.20)/(1.11) + $2.45(1.20)(1.15)/1.11 2 + $2.45(1.20)(1.15)(1.10)/1.11 3 + $65.08/1.11 3 P 0 = $55.70 CH9 3，4，6，9，15 3. Project A has cash flows of $19,000 in Y ear 1, so the cash flows are short by $21,000 of recapturing the initial investment, so the payback for Project A is: Payback = 1 + ($21,000 / $25,000) = 1.84 years Project B has cash flows of: Cash flows = $14,000 + 17,000 + 24,000 = $55,000 during this first three years. The cash flows are still short by $5,000 of recapturing the initial investment, so the payback for Project B is: B: Payback = 3 + ($5,000 / $270,000) = 3.019 years Using the payback criterion and a cutoff of 3 years, accept project A and reject project B. 4. When we use discounted payback, we need to find the value of all cash flows today. The value today of the project cash flows for the first four years is: V alue today of Y ear 1 cash flow = $4,200/1.14 = $3,684.21 V alue today of Y ear 2 cash flow = $5,300/1.14 2 = $4,078.18 V alue today of Y ear 3 cash flow = $6,100/1.14 3 = $4,117.33 V alue today of Y ear 4 cash flow = $7,400/1.14 4 = $4,381.39 To findthe discounted payback, we use these values to find the payback period. The discounted first year cash flow is $3,684.21, so the discounted payback for a $7,000 initial cost is: Discounted payback = 1 + ($7,000 – 3,684.21)/$4,078.18 = 1.81 years For an initial cost of $10,000, the discounted payback is: Discounted payback = 2 + ($10,000 –3,684.21 –4,078.18)/$4,117.33 = 2.54 years Notice the calculation of discounted payback. We know the payback period is between two and three years, so we subtract the discounted values of the Y ear 1 and Y ear 2 cash flows from the initial cost. This is the numerator, which is the discounted amount we still need to make to recover our initial investment. We divide this amount by the discounted amount we will earn in Y ear 3 to get the fractional portion of the discounted payback. If the initial cost is $13,000, the discounted payback is: Discounted payback = 3 + ($13,000 – 3,684.21 – 4,078.18 – 4,117.33) / $4,381.39 = 3.26 years 7 / 17 6. Our definition of AAR is the average net income divided by the average book value. The average net income for this project is: A verage net income = ($1,938,200 + 2,201,600 + 1,876,000 + 1,329,500) / 4 = $1,836,325 And the average book value is: A verage book value = ($15,000,000 + 0) / 2 = $7,500,000 So, the AAR for this project is: AAR = A verage net income / A verage book value = $1,836,325 / $7,500,000 = .2448 or 24.48% 9. The NPV of a project is the PV of the outflows minus the PV of the inflows. Since the cash inflows are an annuity, the equation for the NPV of this project at an 8 percent required return is: NPV = –$138,000 + $28,500(PVIFA 8%, 9 ) = $40,036.31 At an 8 percent required return, the NPV is positive, so we would accept the project. The equation for the NPV of the project at a 20 percent required return is: NPV = –$138,000 + $28,500(PVIFA 20%, 9 ) = –$23,117.45 At a 20 percent required return, the NPV is negative, so we would reject the project. We would be indifferent to the project if the required return was equal to the IRR of the project, since at that required return the NPV is zero. The IRR of the project is: 0 = –$138,000 + $28,500(PVIFA IRR, 9 ) IRR = 14.59% 15. The profitability index is defined as the PV of the cash inflows divided by the PV of the cash outflows. The equation for the profitability index at a required return of 10 percent is: PI = [$7,300/1.1 + $6,900/1.1 2 + $5,700/1.1 3 ] / $14,000 = 1.187 The equation for the profitability index at a required return of 15 percent is: PI = [$7,300/1.15 + $6,900/1.15 2 + $5,700/1.15 3 ] / $14,000 = 1.094 The equation for the profitability index at a required return of 22 percent is: PI = [$7,300/1.22 + $6,900/1.22 2 + $5,700/1.22 3 ] / $14,000 = 0.983 8 / 17 We would accept the project if the required return were 10 percent or 15 percent since the PI is greater than one. We would reject the project if the required return were 22 percent since the PI。
《公司理财》斯蒂芬A.罗斯..-机械工业出版社-英文课件
7 Net Present VCaolrupeoraantedFinance
Capital Budgeting Ross • Westerfield • Jaffe
Seventh Edition
Seventh Edition
《公司理财》斯蒂芬A.罗斯..-机械工业出版社-英文
《公司理财》斯蒂芬A.罗斯..-机械工业出版社-英文
Cash Flows—Not Accounting Earnings.
• Consider depreciation expense. • You never write a check made out to “depreciation”. • Much of the work in evaluating a project lies in taking accounting
《公司理财》斯蒂芬A.罗斯..-机械工业出版社-英文
Incremental Cash Flows
• Side effects matter. • Erosion and cannibalism are both bad things. If our new product causes existing customers to demand less of current products, we need to recognize that.
Cost of bowling ball machine: $100,000 (depreciated according to ACRS 5-year life).
• Later chapters will deal with the impact that the amount of debt that a firm has in its capital structure has on firm value.
公司理财(罗斯)第1章(英文
03 Valuation Basis
The concept and significance of valuation
要点一
Definition
Valuation is the process of estimating the worth of an asset or a company, typically through the use of financial metrics and analysis.
The Time Value of Money
公司理财英文版
公司理财英文版Company Financial ManagementIntroductionFinancial management is a critical aspect of running a successful business. It involves planning, organizing, controlling, and monitoring the company's financial resources to achieve its objectives. Effective financial management ensures that the company has sufficient funds, optimal utilization of resources, and profitability. This article provides an overview of the key components of company financial management, including financial planning, budgeting, forecasting, cash flow management, and risk management.Financial PlanningFinancial planning is the foundation of effective financial management. It involves assessing the company's current financial position, setting financial objectives, and developing strategies to achieve those objectives. The financial planning process includes analyzing the company's revenue and expenses, cash flow, assets and liabilities, and financial ratios. This analysis helps identify areas of improvement and opportunities for growth.One of the key aspects of financial planning is setting realistic and achievable financial goals. These goals can be short-term or long-term and should align with the company's overall business objectives. Financial goals may include increasing revenue, reducing expenses, improving profitability, or expanding into newmarkets. Setting specific, measurable, attainable, relevant, and time-bound (SMART) goals enhances the effectiveness of financial planning.BudgetingBudgeting is an integral part of financial management as it helps allocate financial resources effectively. A budget is a comprehensive plan that outlines the company's expected revenue and expenses for a specific period, typically a year. It serves as a roadmap for financial decision-making and helps control spending, ensure profitability, and allocate resources efficiently.The budgeting process involves gathering relevant financial data, estimating revenue and expenses, and projecting cash flows. The budget should be realistic, achievable, and aligned with the company's financial goals. It should also be flexible enough to adapt to changing circumstances and market conditions. Regular monitoring and review of the budget help identify variances and take corrective actions if necessary.ForecastingForecasting is an essential component of financial management as it helps anticipate future financial trends and outcomes. It involves analyzing historical data, market trends, and economic indicators to predict the company's financial performance. Forecasting enables companies to make informed decisions, identify potential risks and opportunities, and develop strategies to mitigate risks and exploit opportunities.Cash Flow ManagementCash flow management is crucial for the financial stability and success of a company. It involves monitoring and controlling the company's cash inflows and outflows to ensure sufficient liquidity and meet financial obligations. Effective cash flow management minimizes the risk of cash shortages, improves financial flexibility, and enhances the company's ability to invest in growth opportunities.To manage cash flow effectively, companies need to accurately forecast cash inflows from sales, investments, and financing activities. They also need to monitor and control cash outflows, including payments to suppliers, employee salaries, and loan repayments. Efficient working capital management, such as optimizing inventory levels and extending payment terms with suppliers, can help improve cash flow.Risk ManagementRisk management is an integral part of company financial management. It involves identifying, assessing, and mitigating financial risks that may impact the company's financial stability and performance. Some common financial risks include market risks, credit risks, liquidity risks, and operational risks.To manage financial risks effectively, companies need to develop robust risk management strategies and processes. This includes diversifying investments, hedging against currency or interest ratefluctuations, implementing internal controls and governance structures, and having effective insurance coverage. Regular monitoring and review of risk management strategies help ensure their effectiveness and relevance in the changing business environment.ConclusionEffective financial management is crucial for the success of any company. It involves planning, budgeting, forecasting, cash flow management, and risk management. Financial planning helps set realistic and achievable financial goals, while budgeting allocates financial resources effectively. Forecasting helps anticipate future financial trends and outcomes, and cash flow management ensures sufficient liquidity. Lastly, risk management mitigates financial risks that may impact the company's financial stability and performance. By implementing sound financial management practices, companies can improve profitability, maximize shareholder value, and achieve long-term sustainability.。
公司理财——精选推荐
公司理财Chapter 1True / False1.The separation of ownership and management is one distinctive feature of corporations。
2.Financial assets have value because they are claims on the firm's real assets and the cash that those assets will produce。
3.Capital budgeting decisions are used to determine how to raise the cash necessary for investments.4. A successful investment is one that increases the value of the firm.5.The primary goal of any company should be to maximize current period profit.6.Making good investment and financing decisions is the chief task of the financial manager.7.Shareholders welcome higher short-term profits even when they damage long-term profits.8.Pfizer's spending of $7.6 billion in 2006 on research and development of new drugs is a capital budgeting decision but not a financing decision.9.If a project's value is less than its required investment, then the project is attractive financially.10.Making good investment and financing decisions is the chief task of the financial manager. Multiple Choice Questions1.Which of the following would be considered an advantage of the sole proprietorship form of organization?A. Wide access to capital marketsB. Unlimited liabilityC. A pool of expertiseD. Profits taxed at only one level2.When a corporation fails, the maximum that can lost by an investor protected by limited liability is:A. the amount of the initial investment.B. the amount of the profit on the investment.C. the amount necessary to pay the corporation's debts.D. the amount of the investor's personal wealth.3. A board of directors is elected as a representative of the corporation's:A. top management.B. stakeholders.C. shareholders.D. customers.4."Double taxation" refers to:A. all partners paying equal taxes on profits.B. corporations paying taxes on both dividends and retained earnings.C. paying taxes on profits at the corporate level and dividends at the personal level.D. the fact that marginal tax rates are doubled for corporations.5.Which of the following would not be considered a real asset?A. A corporate bondB. A machineC. A patentD. A factory6.Financial markets are used for trading:A. both real assets and financial assets.B. the goods and services produced by a firm.C. securities, such as shares of IBM.D. the raw materials used in manufacturing.7.An example of a firm's financing decision would be:A. acquisition of a competitive firm.B. how much to pay for a specific asset.C. the issuance of ten-year versus twenty-year bonds.D. whether or not to increase the price of its products.8.Which of the firm's financial managers is most likely to be involved with obtaining financing for the firm?A. TreasurerB. ControllerC. Chief Executive OfficerD. Board of Directors9. A chief financial officer would typically:A. report to the treasurer, but supervise the controller.B. report to the controller, but supervise the treasurer.C. report to both the treasurer and controller.D. supervise both the treasurer and controller.10.The primary goal of corporate management should be to:A. maximize the number of shareholders.B. maximize the firm's profit.C. minimize the firm's costs.D. maximize the shareholders' wealth.Chapter 4 习题解答1.What is the future value of $10,000 on deposit for five years at 6% simple interest?FV = PV+(PV x r x t)(10,000) + ((10,000 x .06) x 5) = $13,000.002.How much interest is earned in the third year on a $1,000 deposit that earns 7% interestcompounded annually?1000 x (1.07)2 = $1,144.90 after 2 years.$1,144.90 x .07 = $80.143. What is the present value of the following payment stream, discounted at 8% annually: $1,000 at the end of year 1, $2,000 at the end of year 2, and $3,000 at the end of year 3?4. What is the present value of the following set of cash flows at an interest rate of 7%; $1,000 today, $2,000 at end of year one, $4,000 at end of year three, and $6,000 at end of year five?P.V. = $1,000/(1.07)0 + $2,000/(1.07)1 + $4,000/(1.07)3 + $6,000/(1.07)5= $1,000 + 1,869.16 + 3,265.19 + 4,277.92= $10,412.275. A perpetuity of $5,000 per year beginning today is said to offer a 15% interest rate. What is its present value?6. Your car loan requires payments of $200 per month for the first year and payments of $400 per month during the second year. The annual interest rate is 12% and payments begin in one month. What is the present value of this two-year loan?Or：PV=200×11.2551+400×11.2551×0.8874 = 6246.1311.2551 是1%，期限为12的年⾦现值系数0.8874 是1%，期限为12的复利现值系数7. What is the present value of a five period annuity of $3,000 if the interest rate is 12% and the first payment is made today? PV= 3000×3.6048 （12%，5年的年⾦现值系数）×（1+12%）=12112.128OR：8. If $120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with monthly payments of $965.55, how much interest is paid over the life of the loan?(965.55 x 360) - 120,000 = $227,5989. $50,000 is borrowed, to be repaid in three equal, annual payments with 10% interest. Approximately how much principal is amortized with the first payment?5000 = A ×2.4869 （10%，3年的年⾦现值系数）A= 2010.542010.54- 5000×10% = 1510.5410. The present value of an annuity stream of $100 per year is $614 when valued at a 10% rate. By approximately how much would the value change if these were annuities due?Difference = $614(1+10%) - $614 = $6111. What is the expected real rate of interest for an account that offers a 12% nominal rate of return when the rate of inflation is 6% annually?1 + real interest rate = (1 + nominal interest rate)/(1 + inflation)1 + real interest rate = 1.12/1.06real interest rate = 5.66%12. What is the minimum nominal rate of return should you accept, if you require a 4% real rate of return and the rate of inflation is expected to average 3.5% during the investment period?7.64% = nominal rate13. What is the APR on a loan that charges interest at the rate of 1.4% per month?1.4% monthly x 12 = 16.8% APRChapter 5 习题及解答23. The coupon rate of a bond equals:A. its yield to maturity.B. a percentage of its face value.C. the maturity value.D. a percentage of its price.25. Which of the following presents the correct relationship? As the coupon rate of a bond increases, the bond's:A. face value increases.B. current price decreases.C. interest payments increase.D. maturity date is extended.26. What happens when a bond's expected cash flows are discounted at a rate lower than the bond's coupon rate?A. The price of the bond increases.B. The coupon rate of the bond increases.C. The par value of the bond decreases.D. The coupon payments will be adjusted to the new discount rate.30. How much should you pay for a $1,000 bond with 10% coupon, annual payments, and five years to maturity if the interest rate is 12%?A. $ 927.90B. $ 981.40C. $1,000.00D. $1,075.8231. How much would an investor expect to pay for a $1,000 par value bond with a 9% annual coupon that matures in 5 years if the interest rate is 7%?A. $696.74B. $1,075.82C. $1,082.00D. $1,123.0132. Which of the following statements is correct for a 10% coupon bond that has a current yield of 7%?A. The face value of the bond has decreased.B. The bond's maturity value exceeds the bond's price.C. The bond's internal rate of return is 7%.D. The bond's maturity value is lower than the bond's price.37. A bond's yield to maturity takes into consideration:A. current yield but not price changes of a bond.B. price changes but not current yield of a bond.C. both current yield and price changes of a bond.D. neither current yield nor price changes of a bond.40. What is the yield to maturity for a bond paying $100 annually that has six years until maturity and sells for $1,000?A. 6.0%B. 8.5%C. 10.0%D. 12.5%39. What is the coupon rate for a bond with three years until maturity, a price of $1,053.46, and a yield to maturity of 6%?A. 6%B. 8%C. 10%D. 11%43. What happens to the coupon rate of a bond that pays $80 annually in interest if interest rates change from 9% to 10%?A. The coupon rate increases to 10%.B. The coupon rate remains at 9%.C. The coupon rate remains at 8%.D. The coupon rate decreases to 8%.44. Which of the following is fixed (e.g., cannot change) for the life of a given bond?A. Current price.B. Current yield.C. Yield to maturity.D. Coupon rate.45. What is the rate of return for an investor who pays $1,054.47 for a three-year bond with a 7% coupon and sells the bond one year later for $1,037.19?A. 5.00%B. 5.33%C. 6.46%D. 7.00%Rate of Return = ($70.00 - $17.28)/$1,054.47= $52.72/$1,054.47= 5%47. What is the relationship between an investment's rate of return and its yield to maturity for an investor that does not hold a bond until maturity?A. Rate of return is lower than yield to maturity.B. Rate of return is higher than yield to maturity.C. Rate of return equals yield to maturity.D. There is no predetermined relationship.49. If a four year bond with a 7% coupon and a 10% yield to maturity is currently worth $904.90, how much will it be worth one year from now if interest rates are constant?A. $ 904.90B. $ 925.39C. $ 947.93D. $1,000.0053. Which of the following is correct for a bond priced at $1,100 that has ten years remaining until maturity, and a 10% coupon, with semiannual payments?A. Each payment of interest equals $50.B. Each payment of interest equals $55.C. Each payment of interest equals $100.D. Each payment of interest equals $110.56. U.S. Treasury bond yields do not contain a:A. coupon interest payment.B. nominal interest rate.C. default premium.D. yield to maturity.58. The purpose of a floating-rate bond is to:A. save interest expense for corporate issuers.B. avoid making interest payments until maturity.C. shift the yield curve.D. offer rates adjusted to current market conditions.59. Which of the following would not be associated with a zero-coupon bond?A. Yield to maturityB. Discount bondC. Current YieldD. Interest-rate risk65. What is the yield to maturity of a bond with the following characteristics? Coupon rate is 8% with semi-annual payments, current price is $960, three years until maturity.A. 4.78%B. 5.48%C. 9.57%D. 12.17%69. If a bond is priced at par value, then:A. it has a very low level of default risk.B. its coupon rate equals its yield to maturity.C. it must be a zero-coupon bond.D. the bond is quite close to maturity.71. What is the amount of the annual coupon payment for a bond that has six years until maturity, sells for $1,050, and has a yield to maturity of 9.37%?A. $87.12B. $93.70C. $100.00D. $105.0076. What is the total return to an investor who buys a bond for $1,100 when the bond has a 9% coupon rate and five years remaining until maturity, then sells the bond after one year for $1,085?A. 6.82%B. 6.91%C. 7.64%D. 9.00%(90 - 15)/1,100 = 6.82%81. An investor holds two bonds, one with five years until maturity and the other with 20 years until maturity. Which of thefollowing is more likely if interest rates suddenly increase by 2%?A. The five-year bond will decrease more in price.B. The 20-year bond will decrease more in price.C. Both bonds will decrease in price similarly.D. Neither bond will decrease in price, but yields will increase.82. How much should you be prepared to pay for a 10-year bond with a 6% coupon and a yield to maturity to maturity of7.5%?A. $411.84B. $897.04C. $985.00D. $1,000.0083. How much should you be prepared to pay for a 10-year bond with a 6% coupon, semi-annual payments, and a semi-annually compounded yield of 7.5%?A. $895.78B. $897.04C. $938.40D. $1,312.66Chapter 6 习题1. If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price?P/E = 13.5XThen P = 13.5 x $3Price = $40.5040. What is the current price of a share of stock for a firm with $5 million in balance-sheet equity, 500,000 shares of stock outstanding, and a price/book value ratio of 4?book value per share = $5,000,000/500,000 = $10If price/book value = 4then price = $10 x 4 = $4047. A stock paying $5 in annual dividends sells now for $80 and has an expected return of 14%. What might investors expect to pay for the stock one year from now?Expected return =14% =$11.20 = P1 - $75$86.20 = P148. Which of the following statements is correct about a stock currently selling for $50 per share that has a 16% expected return and a 10% expected capital appreciation?Expected return = expected dividend yield + expected capital appreciation.16% = expected dividend yield + 10%6% = expected dividend yield$50 share price x 6% = $3 expected dividend payment51. How much should you pay for a share of stock that offers a constant growth rate of 10%, requires a 16% rate of return, and is expected to sell for $50 one year from now?The easiest way to solve this problem is to realize:Expected return = expected dividend yield+ expected capital appreciationThen:.16 = .06 + expected capital appreciation.10 = expected capital appreciationAndP1 = 110% of P o$50.00 = 1.1P o$45.45 = P o54. If the dividend yield for year one is expected to be 5% based on the current price of $25, what will the year four dividend be if dividends grow at a constant 6%?.05 x 25 = 1.25 = Div1then, D4 = 1.25 x (1.06)3 = $1.49What is the expected dividend to be paid in three years if yesterday's dividend was $6.00, dividends are expected to grow at a constant 6% annual rate, and the firm has a 10% expected return?D3 = D o x (1 + g)3= $6.00 (1.06)3= $7.15What should be the price for a common stock paying $3.50 annually in dividends if the growth rate is zero and the discount rate is 8%?P o =If next year's dividend is forecast to be $5.00, the constant growth rate is 4%, and the discount rate is 16%, then the current stock price should be:P o =$41.67 =What price would you expect to pay for a stock with 13% required rate of return, 4% rate of dividend growth, and an annual dividend of $2.50 which will be paid tomorrow?P o = D o += $2.50 += $2.50 += $2.50 + $28.89= $31.39What constant growth rate in dividends is expected for a stock valued at $32.00 if next year's dividend is forecast at $2.00 and the appropriate discount rate is 13%?$32.00 =$4.16 - 32g = $2.00$2.16 = 32 g.0675 = g6.75% = gWhat rate of return is expected from a stock that sells for $30 per share, pays $1.50 annually in dividends, and is expected to sell for $33 per share in one year?Expected Return === .05 + .10= .15 = 15%What would be the expected price of a stock when dividends are expected to grow at a 25% rate for three years, then grow at a constant rate of 5%, if the stock's required return is 13% and next year's dividend will be $4.00?P o == 3.54 += 3.54 + 3.92 + 4.33 + 56.83= $68.62Chape71. What is the NPV of a project that costs $100,000 and returns $50,000 annually for three years if the opportunity cost of capital is 14%?2. The profitability index for a project costing $40,000 and returning $15,000 annually for four years at an opportunity cost of capital of 12% is:3. What is the payback period for a project with $20,000 initial cost, cash inflows of $5,800 per year for six years, and a discount rate of 15%?Its payback period is roughly 3 1/2 years.4. If a project's IRR is 13% and the project provides annual cash flows of $15,000 for four years, how much did the project cost?5. What is the equivalent annual cost for a project that requires a $40,000 investment at time-period zero, and a $10,000 annual expense during each of the next 4 years, if the opportunity cost of capital is 10%?And the four-year annuity to provide a present value of $71,698.65 at 10% is $22,618.83.6. You can continue to use your less efficient machine at a cost of $8,000 annually for the next five years. Alternatively, you can purchase a more efficient machine for $12,000 plus $5,000 annual maintenance. At a cost of capital of 15%, you should:$12,000 + $16,760.78= $28,760.78 Total PV of cost, which represents an EAC of $8,579.79, which is $579.79 more annually.Keep th el9e old machine and save $580 in equivalent annual costs.Chap9. Calculate the break-even level of sales, assuming: $1.4 million fixed costs, $400,000 depreciation expense, variable costs-to-sales ratio of 65%.2. A firm with 60% of sales going to variable costs, $1.5 million fixed costs, and $500,000 depreciation would show what accounting profit with sales of $3 million? Ignore taxes.3. If pre-tax profits decrease by 13.8% when the DOL is 3.8, then the decrease in sales is:4. If a firm's DOL is 4.0 when its profit is $2,000,000 and its depreciation is $500,000, how much fixed cost does it have? Chape121. What is a firm's weighted-average cost of capital if the stock has a beta of 1.45, Treasury bills yield 5%, and the market portfolio offers an expected return of 14%? In addition to equity, the firm finances 35% of its assets with debt that has a yield to maturity of 9%. The firm is in the 35% marginal tax bracket.r e= 5% + 1.45 (14% - 5%)= 5% + 13.05= 18.05%r d= 9% (1 - .35)= 5.85%WACC = (.3 x 5.85%) + (.7 x 18.05%)= 1.755% + 12.635%= 14.39%2. What is the weighted-average cost of capital for a firm with the following sources of funds and corresponding required rates of return: $5 million common stock at 16%, $500,000 preferred stock at 10%, and $3 million debt at 9%. All amounts are listed at market values and the firm's tax rate is 35%.= .02065 + .00588 + .09412= 12.07%3. The capital structure for the CR Corporation is the following: bonds $5,500, and common stock $11,000. If CR has an after-tax cost of debt of 6%, and a 16% cost of common stock, what is its WACC?A. 9.33%B. 12.67%C. 13.33%D. 14.67%WACC = [(5,500/16,500) x (0.06)] + [(11,000/16,500) x (0.16)]= .02 + .10667= 12.67%4. Plasti-tech Inc. is financed 60% with equity and 40% with debt. Currently, its debt has a before-tax interest rate of 12%. Plasti-tech's common stock trades at $15 per share and its most recent dividend was $1.00. Future dividends are expected grow by 4%. If the tax rate is 34%, what is Plasti-tech's WACC?A. 7.39%B. 9.57%C. 9.73%D. 11.20%r e = ((1(1 + 0.04))/$15) + 0.04= 10.93%WACC = 0.4[0.12(1 - 0.34)] + 0.6(0.1093)= .0317 + .0656= 9.73%5. What percentage of value should be allocated to equity in WACC computations for a firm with $50 million in debt selling at 85% of par, $50 million in book value of equity, and $65 million in market value of equity?A. 50.0%B. 54.1%C. 56.5%D. 60.5%。
罗斯《公司理财》英文习题答案DOCchap012
公司理财习题答案第十二章Chapter 12: Risk, Return, and Capital Budgeting12.1 Cost of equity R S = 5 + 0.95 (9) = 13.55% NPV of the project= -$1.2 million + $340,.0001135515tt =∑= -$20,016.52Do not undertake the project. 12.2 a. R D= (-0.05 + 0.05 + 0.08 + 0.15 + 0.10) / 5 = 0.066 R M = (-0.12 + 0.01 + 0.06 + 0.10 + 0.05) / 5 = 0.02b.DR- D R M R -R M(M R -M R )2 (D R -R D )(M R -R M )-0.116 -0.14 0.0196 0.01624 -0.016 -0.01 0.0001 0.00016 0.014 0.04 0.0016 0.00056 0.084 0.08 0.0064 0.00672 0.034 0.03 0.0009 0.001020.02860.02470Beta of Douglas = 0.02470 / 0.0286 = 0.86412.3 R S = 6% + 1.15 ⨯ 10% = 17.5% R B = 6% + 0.3 ⨯ 10% = 9% a. Cost of equity = R S = 17.5% b. B / S = 0.25 B / (B + S) = 0.2 S / (B + S) = 0.8WACC = 0.8 ⨯ 17.5% + 0.2 ⨯ 9% (1 - 0.35)= 15.17%12.4 C σ = ()2104225.0 = 0.065M σ = ()2101467.0 = 0.0383Beta of ceramics craftsman = CM ρC σ M σ / M σ2 = CM ρC σ/ M σ = (0.675) (0.065) / 0.0383 = 1.146 12.5a. To compute the beta of Mercantile Manufacturing’s stock, you need the product of the deviations of Mercantile’s returns from their mean and the deviations of the market’s returns from their mean. You also need the squares of the deviations ofthe market’s returns from their mean.The mechanics of computing the means and the deviations were presented in an earlier chapter.R T = 0.196 / 12 = 0.016333 R M = 0.236 / 12 = 0.019667 E(T R -R T ) (M R -R M ) = 0.038711 E(M R -R M )2 = 0.038588 β = 0.038711 / 0.038588= 1.0032b.The beta of the average stock is 1. Mercantile’s beta is close to 1, indicating that its stock has average risk.12.6 a.R M can have three values, 0.16, 0.18 or 0.20. The probability that M R takes one of these values is the sum of the joint probabilities of the return pair that include theparticular value of M R . For example, if M R is 0.16, R J will be 0.16, 0.18 or 0.22. The probability that M R is 0.16 and R J is 0.16 is 0.10. The probability that R M is 0.16 and R J is 0.18 is 0.06. The probability that M R is 0.16 and R J is 0.22 is 0.04. The probability that M R is 0.16 is, therefore, 0.10 + 0.06 + 0.04 = 0.20. The same procedure is used to calculate the probability that M R is 0.18 and the probability that M R is 0.20. Remember, the sum of the probability must be one.M RProbability 0.16 0.20 0.18 0.60 0.20 0.20 b. i.RM= 0.16 (0.20) + 0.18 (0.60) + 0.20 (0.20) = 0.18ii. 2M σ = (0.16 - 0.18) 2 (0.20) + (0.18 - 0.18) 2 (0.60) + (0.20 - 0.18) 2 (0.20)= 0.00016iii. M σ = ()2100016.0 = 0.01265c. R J Probability .18 .20 .20 .40 .22 .20 .24.10d. i. E j = .16 (.10) + .18 (.20) + .20 (.40) + .22 (.20) + .24(.10) = .20 ii. σj 2 = (.16 - .20)2 (.10) + (.18 - .20)2 (.20) + (.20 - .20)2 (.40)+ (.22 - .20)2 (.20) + (.24 - .20)2 (.10) = .00048公司理财习题答案第十二章iii. σj = ()21.0 = .0219100048e. Cov mj= (.16 - .18) (.16 - .20) (.10) + (.16 - .18) (.18 - .20) (.06)+ (.16 - .18) (.22 - .20) (.04) + (.20 - .18) (.18 - .20) (.02)+ (.20 - .18) (.22 - .20) (.04) + (.20 - .18) (.24 - .20) (.10)= .000176Corr mj = (0.000176) / (0.01265) (0.02191) = 0.635f. βj = (.635) (.02191) / (.01265) = 1.1012.7 i. The risk of the new project is the same as the risk of the firm without the project.ii. The firm is financed entirely with equity.12.8 a. Pacific Cosmetics should use its stock beta in the evaluation of the project only ifthe risk of the perfume project is the same as the risk of Pacific Cosmetics.b. If the risk of the project is the same as the risk of the firm, use the firm’s stock beta.If the risk differs, then use the beta of an all-equity firm with similar risk as theperfume project. A good way to estimate the beta of the project would be toaverage the betas of many perfume producing firms.12.9 E(R S) = 0.1 ⨯ 3 + 0.3 ⨯ 8 + 0.4 ⨯ 20 + 0.2 ⨯ 15 = 13.7%E(R B) = 0.1 ⨯ 8 + 0.3 ⨯ 8 + 0.4 ⨯ 10 + 0.2 ⨯ 10 = 9.2%E(R M) = 0.1 ⨯ 5 + 0.3 ⨯ 10 + 0.4 ⨯ 15 + 0.2 ⨯ 20 = 13.5%State {R S - E(R S)}{R M - E(R M)}Pr {R B - E(R B)}{R M - E(R M)}Pr1 (0.03-0.137)(0.05-0.135)⨯0.1 (0.08-0.092)(0.05-0.135)⨯0.12 (0.08-0.137)(0.10-0.135)⨯0.3 (0.08-0.092)(0.10-0.135)⨯0.33 (0.20-0.137)(0.15-0.135)⨯0.4 (0.10-0.092)(0.15-0.135)⨯0.44 (0.15-0.137)(0.20-0.135)⨯0.2 (0.10-0.092)(0.20-0.135)⨯0.2Sum 0.002056 0.00038= Cov(R S, R M) = Cov(R B, R M)σM 2= 0.1 (0.05 - 0.135)2 + 0.3 (0.10-0.135)2+ 0.4 (0.15-0.135)2 + 0.2 (0.20-0.135)2= 0.002025a. Beta of debt = Cov(R B, R M) / σM2 = 0.00038 / 0.002025= 0.188b. Beta of stock = Cov(R S, R M) / σM2 = 0.002055 / 0.002025= 1.015c. B / S = 0.5Thus, B / (S + B) = 1 / 3 = 0.3333S / (S + B) = 2 / 3 = 0.6667Beta of asset = 0.188 ⨯ 0.3333 + 1.015 ⨯ 0.6667= 0.73912.10 The discount rate for the project should be lower than the rate implied by the use ofthe Security Market Line. The appropriate discount rate for such projects is theweighted average of the interest rate on debt and the cost of equity. Since theinterest rate on the debt of a given firm is generally less than the firm’s cost ofequity, using only the stock’s beta yields a discount rate that is too high. Theconcept and practical uses of a weighted average discount rate will be in a laterchapter.12.11i. RevenuesThe gross income of the firm is an important factor in determining beta. Firmswhose revenues are cyclical (fluctuate with the business cycle) generally have highbetas. Firms whose revenues are not cyclical tend to have lower betas.ii. Operating leverageOperating leverage is the percentage change in earnings before interest and taxes(EBIT) for a percentage change in sales, [(Change in EBIT / EBIT) (Sales / Changein sales)]. Operating leverage indicates the ability of the firm to service its debt andpay stockholders.iii. Financial leverageFinancial leverage arises from the use of debt. Financial leverage indicates theability of the firm to pay stockholders. Since debt holders must be paid beforestockholders, the higher the financial leverage of the firm, the riskier its stock.The beta of common stock is a function of all three of these factors. Ultimately, theriskiness of the stock, of which beta captures a portion, is determined by thefluctuations in the income available to the stockholders. (As was discussed in thechapter, whether income is paid to the stockholders in the form of dividends or it isretained to finance projects are irrelevant as long as the projects are of similar riskas the firm.) The income available to common stock, the net income of the firm,depends initially on the revenues or sales of the firm. The operating leverageindicates how much of each dollar of revenue will become EBIT. Financialleverage indicates how much of each dollar of EBIT will become net income.12.12 a. Cost of equity for National Napkin= 7 + 1.29 (13 - 7)= 14.74%b. B / (S + B) = S / (S + B) = 0.5WACC = 0.5 ⨯ 7 ⨯ 0.65 + 0.5 ⨯ 14.74= 9.645%12.13 B = $60 million ⨯ 1.2 = $72 millionS = $20 ⨯ 5 million = $100 millionB / (S + B) = 72 / 172 = 0.4186S / (S + B) = 100 / 172 = 0.5814WACC = 0.4186 ⨯ 12% ⨯ 0.75 + 0.5814 ⨯ 18%= 14.23%12.14 S = $25 ⨯ 20 million = $500 millionB = 0.95 ⨯ $180 million = $171 million公司理财习题答案第十二章B / (S + B) = 0.2548 S / (S + B) = 0.7452 WACC = 0.7452 ⨯ 20% + 0.2548 ⨯ 10%⨯ 0.60 = 16.43%12.15 B / S = 0.75 B / (S + B) = 3 / 7 S / (S + B) = 4 / 7 WACC = (4 / 7) ⨯ 15% + (3 / 7) ⨯ 9%⨯ (1 - 0.35) = 11.08%NPV = -$25 million + $7(.)m illion tt 10110815+=∑= $819,299.04 Undertake the project.12.16 WACC = (0.5) x 28% + (0.5) x 10% x (1 - 0.35)= 17.25%NPV = - $1,000,000 + (1 - 0.35) $600,000 51725.0A = $240,608.50Mini Case: Allied ProductsAssumptionsPP&E Investment 42,000,000 Useful life of PP&E Investment (years) 7NEW GPWS price/unit (Year 1) 70,000 NEW GPWS variable cost/unit (Year 1) 50,000 UPGRADE GPWS price/unit (Year 1) 35,000 UPGRADE GPWS variable cost/unit (Year 1) 22,000Year 1 marketing and admin costs 3,000,000 Annual inflation rate 3.00% Corporate Tax rate 40.00%Beta (9/27 Valueline) 1.20 Rf (30 year U.S. Treasury Bond) 6.20%NEW GPWS Market Growth (Strong Growth) 15.00%NEW GPWS Market Growth (Moderate Growth) 10.00%NEW GPWS Market Growth (Mild Recession) 6.00%NEW GPWS Market Growth (Severe Recession state of economy) 3.00%Total Annual Market for UPGRADE GPWS (units) 2,500Allied Signal Market Share in each market 45.00%公司理财习题答案第十二章Year 0 1 2 3 4 5 SalesNEWUnits 97 107 118 130 144 Price 70,000 72,100 74,263 76,491 78,786 Total NEW 6,772,500 7,688,654 8,736,317 9,935,345 11,308,721 UPGRADEUnits 1,125 1,125 1,125 1,125 1,125 Price 35,000 36,050 37,132 38,245 39,393 Total UPGRADE 39,375,000 40,556,250 41,772,938 43,026,126 44,316,909 Total Sales 46,147,500 48,244,904 50,509,254 52,961,470 55,625,630 Variable CostsNEW 4,837,500 5,491,896 6,240,226 7,096,675 8,077,658 UPGRADE 24,750,000 25,492,500 26,257,275 27,044,993 27,856,343 Total Variable Costs 29,587,500 30,984,396 32,497,501 34,141,668 35,934,001SG&A 3,000,000 3,090,000 3,182,700 3,278,181 3,376,526 Depreciation 6,001,800 10,285,800 7,345,800 5,245,800 3,750,600EBIT 7,558,200 3,884,708 7,483,253 10,295,821 12,564,503 Interest 0 0 0 0 0 Tax 3,023,280 1,553,883 2,993,301 4,118,329 5,025,801 Net Income 4,534,920 2,330,825 4,489,952 6,177,493 7,538,702EBIT + Dep - Taxes 10,536,720 12,616,625 11,835,752 11,423,293 11,289,302 Less: Change in NWC 2,000,000 307,375 104,870 113,218 122,611 (2,648,074) Less: Captial Spending 42,000,000 (10,948,080) CF from Assets: (44,000,000) 10,229,345 12,511,755 11,722,534 11,300,682 24,885,455 Discounted CF from Assets 9,304,480 10,351,583 8,821,741 7,735,381 15,494,120Total Discounted CF from Assets 51,707,305Results。
公司理财罗斯英文原书第九版第二章
Financial Statements and Cash Flow
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Key Concepts and Skills
Usually a separate section reports the amount of taxes levied on income.
$86 $43 $43
2-13
U.S.C.C. Income Statement
Total operating revenues Cost of goods sold Selling, general, and administrative expenses Depreciation Operating income Other income Eห้องสมุดไป่ตู้rnings before interest and taxes Interest expense Pretax income Taxes Current: $71 Deferred: $13 Net income Retained earnings: Dividends: $2,262 1,655 327 90 $190 29 $219 49 $170 84
Deferred taxes Long-term debt Total long-term liabilities $117 471 $588 $104 458 $562
Total assets
$1,879
$1,742
Stockholder's equity: Preferred stock $39 $39 Common stock ($1 par value) 55 32 Capital surplus 347 327 Accumulated retained earnings 390 347 Less treasury stock (26) (20) Total equity $805 $725 Total liabilities and stockholder's equity $1,879 $1,742
公司理财罗斯英文原书第九版第一章
1-16
现金流量的时点
年份
1 2 3 4 总计
新产品（方案A）
0 0 0 20000 20000
新产品（方案B）
4000 4000 4000
？
4000 16000
哪个方案更好？
1-17
现金流量的风险
悲观 一般 乐观
欧洲
75000
100000
125000
日本
0
100000
200000
选择日本投资吗？
1-1
Chapter Outline
1.1 What is Corporate Finance?
1.2 The Corporate Firm
1.3 The Importance of Cash Flows
1.4 The Goal of Financial Management 1.5 The Agency Problem and Control of the Corporation 1.6 Regulation
1-13
Voting Rights
Taxation Reinvestment and dividend payout Liability
Double Broad latitude
Limited liability
Continuity
Perpetual life
1.3 The Importance of Cash Flow
The corporate form of business is the standard method for solving the problems encountered in raising large amounts of cash. However, businesses can take other forms.
Cha02 罗斯公司理财第九版原版书课后习题
reported in the financing activity section of the accounting statement of cash flows. When Tyco received payments from customers, the cash inflows were reported as operating cash flows. Another method used by Tyco was to have acquired companies prepay operating expenses. In other words, the company acquired by Tyco would pay vendors for items not yet received. In one case, the payments totaled more than $50 million. When the acquired company was consolidated with Tyco, the prepayments reduced Tyco’s cash outflows, thus increasing the operating cash flows.Dynegy, the energy giant, was accused of engaging in a number of complex “round-trip trades.” The round-trip trades essentially involved the sale of natural resources to a counterparty, with the repurchase of the resources from the same party at the same price. In essence, Dynegy would sell an asset for $100, and immediately repurchase it from the buyer for $100. The problem arose with the treatment of the cash flows from the sale. Dynegy treated the cash from the sale of the asset as an operating cash flow, but classified the repurchase as an investing cash outflow. The total cash flows of the contracts traded by Dynegy in these round-trip trades totaled $300 million.Adelphia Communications was another company that apparently manipulated cash flows. In Adelphia’s case, the company capitalized the labor required to install cable. In other words, the company classified this labor expense as a fixed asset. While this practice is fairly common in the telecommunications industry, Adelphia capitalized a higher percentage of labor than is common. The effect of this classification was that the labor was treated as an investment cash flow, which increased the operating cash flow.In each of these examples, the companies were trying to boost operating cash flows by shifting cash flows to a different heading. The important thing to notice is that these movements don’t affect the total cash flow of the firm, which is why we recommend focusing on this number, not just operating cash flow.Summary and ConclusionsBesides introducing you to corporate accounting, the purpose of this chapter has been to teach you how to determine cash flow from the accounting statements of a typical company.1. Cash flow is generated by the firm and paid to creditors and shareholders. It can be classifiedas:1. Cash flow from operations.2. Cash flow from changes in fixed assets.3. Cash flow from changes in working capital.2. Calculations of cash flow are not difficult, but they require care and particular attention to detailin properly accounting for noncash expenses such as depreciation and deferred taxes. It is especially important that you do not confuse cash flow with changes in net working capital and net income.Concept Questions1. Liquidity True or false: All assets are liquid at some price. Explain.2. Accounting and Cash Flows Why might the revenue and cost figures shown on a standardincome statement not represent the actual cash inflows and outflows that occurred during a period?3. Accounting Statement of Cash Flows Looking at the accounting statement of cash flows,what does the bottom line number mean? How useful is this number for analyzing a company? 4. Cash Flows How do financial cash flows and the accounting statement of cash flows differ?Which is more useful for analyzing a company?5. Book Values versus Market Values Under standard accounting rules, it is possible for astockholders’ equity of Information Control Corp. one year ago:During the past year, Information Control issued 10 million shares of new stock at a total price of $43 million, and issued $10 million in new long-term debt. The company generated $9 million in net income and paid $2 million in dividends. Construct the current balance sheet reflecting the changes that occurred at Information Control Corp. during the year.8. Cash Flow to Creditors The 2009 balance sheet of Anna’s Tennis Shop, Inc., showed long-term debt of $1.34 million, and the 2010 balance sheet showed long-term debt of $1.39 million.The 2010 income statement showed an interest expense of $118,000. What was the firm’s cash flow to creditors during 2010?9. Cash Flow to Stockholders The 2009 balance sheet of Anna’s Tennis Shop, Inc., showed$430,000 in the common stock account and $2.6 million in the additional paid-in surplus account.The 2010 balance sheet showed $450,000 and $3.05 million in the same two accounts, respectively. If the company paid out $385,000 in cash dividends during 2010, what was the cash flow to stockholders for the year?10. Calculating Cash Flows Given the information for Anna’s Tennis Shop, Inc., in the previoustwo problems, suppose you also know that the firm’s net capital spending for 2010 was $875,000 and that the firm reduced its net working capital investment by $69,000. What was the firm’s 2010 operating cash flow, or OCF?INTERMEDIATE (Questions 11–24)11. Cash Flows Ritter Corporation’s accountants prepared the following financial statements foryear-end 2010:1. Explain the change in cash during 2010.2. Determine the change in net working capital in 2010.3. Determine the cash flow generated by the firm’s assets during 2010.12. Financial Cash Flows The Stancil Corporation provided the following current information:Determine the cash flows from the firm and the cash flows to investors of the firm.13. Building an Income Statement During the year, the Senbet Discount Tire Company hadgross sales of $1.2 million. The firm’s cost of goods sold and selling expenses were $450,000 and $225,000, respectively. Senbet also had notes payable of $900,000. These notes carried an interest rate of 9 percent. Depreciation was $110,000. Senbet’s tax rate was 35 percent.1. What was Senbet’s net income?2. What was Senbet’s operating cash flow?14. Calculating Total Cash Flows Schwert Corp. shows the following information on its 2010income statement: sales = $167,000; costs = $91,000; other expenses = $5,400; depreciation expense = $8,000; interest expense = $11,000; taxes = $18,060; dividends = $9,500. In addition, you’re told that the firm issued $7,250 in new equity during 2010 and redeemed $7,100 in outstanding long-term debt.1. What is the 2010 operating cash flow?2. What is the 2010 cash flow to creditors?3. What is the 2010 cash flow to stockholders?4. If net fixed assets increased by $22,400 during the year, what was the addition to networking capital (NWC)?15. Using Income Statements Given the following information for O’Hara Marine Co., calculatethe depreciation expense: sales = $43,000; costs = $27,500; addition to retained earnings = $5,300; dividends paid = $1,530; interest expense = $1,900; tax rate = 35 percent.1. What is owners’ equity for 2009 and 2010?2. What is the change in net working capital for 2010?3. In 2010, Weston Enterprises purchased $1,800 in new fixed assets. How much in fixedassets did Weston Enterprises sell? What is the cash flow from assets for the year? (The tax rate is 35 percent.)4. During 2010, Weston Enterprises raised $360 in new long-term debt. How much long-termdebt must Weston Enterprises have paid off during the year? What is the cash flow to creditors?Use the following information for Ingersoll, Inc., for Problems 23 and 24 (assume the tax rate is34 percent):23. Financial Statements Draw up an income statement and balance sheet for this company for2009 and 2010.24. Calculating Cash Flow For 2010, calculate the cash flow from assets, cash flow to creditors,and cash flow to stockholders.CHALLENGE (Questions 25–27)25. Cash Flows You are researching Time Manufacturing and have found the following accountingstatement of cash flows for the most recent year. You also know that the company paid $82 million in current taxes and had an interest expense of $43 million. Use the accounting statement of cash flows to construct the financial statement of cash flows.Nick has also provided the following information: During the year the company raised $118,000 in new long-term debt and retired $98,000 in long-term debt. The company also sold $11,000 in new stock and repurchased $40,000 in stock. The company purchased $786,000 in fixed assets and sold $139,000 in fixed assets.Angus has asked you to prepare the financial statement of cash flows and the accounting statement of cash flows. He has also asked you to answer the following questions:1. How would you describe Warf Computers’ cash flows?2. Which cash flow statement more accurately describes the cash flows at the company?3. In light of your previous answers, comment on Nick’s expansion plans.。
公司理财第二版答案英文版
Company Financial Management Second Edition Answer (EnglishVersion)IntroductionIn this document, we present the answers to the questions and exercises in the second edition of the Company Financial Management textbook. This comprehensive guide aims to provide a better understanding of financial management principles and practices for companies.Chapter 1: Introduction to Financial ManagementQuestion 1: Define financial management and explain its significance for businesses.Financial management refers to the process of planning, organizing, controlling, and monitoring a company’s financial resources to achieve its goals and objectives. It involves making strategic financial decisions that optimize the use of funds and contribute to the long-term success of the business. Financial management is essential for businesses as it allows them to:•Allocate resources efficiently•Minimize financial risks•Maximize profitability and shareholder value•Make informed investment decisions•Ensure regulatory complianceQuestion 2: Describe the three primary areas of financial management.The three primary areas of financial management are:1.Capital Budgeting: This involves evaluating andselecting the best long-term investment opportunities that align with the company’s goa ls. It includes analyzing thepotential returns, risks, and cash flows associated with each investment project.2.Capital Structure: Capital structure refers to themix of debt and equity used to finance a company’soperations. Financial managers need to determine theoptimal capital structure that balances the cost of capitaland the risk of the business. This decision affects thecompany’s ability to raise funds and its overall financialstability.3.Working Capital Management: Working capitalmanagement focu ses on managing the company’s short-term assets and liabilities to ensure smooth businessoperations. It includes managing cash flow, inventory,accounts receivable, and accounts payable effectively tomaintain a healthy liquidity position.Question 3: Explain the goal of financial management.The goal of financial management is to maximize shareholder wealth or value. Financial managers aim to make decisions that increase the market value of the company’sshares and generate higher returns for shareholders. This objective is accomplished by making sound financial decisions, such as investing in profitable projects, optimizing the capital structure, and efficiently managing working capital.Chapter 2: Financial Statements and AnalysisExercise 1: Analyzing Financial StatementsUsing the financial statements for Company XYZ provided below, answer the following questions:Income Statement:Year 1Year 2Revenue$500,000$600,000Expenses$300,000$350,000Net Income$200,000$250,000Balance Sheet:Year 1Year 2Assets$800,000$900,000Liabilities$200,000$250,000Equity$600,000$650,000a)Calculate the net profit margin for Year 1 and Year 2.Solution:Net Profit Margin (Year 1) = Net Income (Year 1) / Revenue (Year 1) * 100 = $200,000 / $500,000 * 100 = 40%Net Profit Margin (Year 2) = Net Income (Year 2) / Revenue (Year 2) * 100 = $250,000 / $600,000 * 100 = 41.67%b)Determine the return on equity (ROE) for Year 1 andYear 2.Solution:Return on Equity (Year 1) = Net Income (Year 1) / Equity (Year 1) * 100 = $200,000 / $600,000 * 100 = 33.33%Return on Equity (Year 2) = Net Income (Year 2) / Equity (Year 2) * 100 = $250,000 / $650,000 * 100 = 38.46%c)Calculate the current ratio for Year 1 and Year 2.Solution:Current Ratio (Year 1) = Assets (Year 1) / Liabilities (Year 1) = $800,000 / $200,000 = 4Current Ratio (Year 2) = Assets (Year 2) / Liabilities (Year 2) = $900,000 / $250,000 = 3.6ConclusionIn this document, we provided the answers to selected questions and exercises from the second edition of the Company Financial Management textbook. These answers should help readers enhance their understanding of financial management principles and practices for companies. It is important to note that this document covers only a fraction of the content presented in the textbook and can be used as a supplementary resource for further study.。
公司理财英文版第九章
Net Present Value and Other Investment Criteria
Key Concepts and Skills
• Be able to compute payback and discounted payback and understand their shortcomings
• Since our goal is to increase owner wealth, NPV is a direct measure of how well this project will meet our goal.
ห้องสมุดไป่ตู้9-7
Computing NPV for the Project
• Using the formulas:
• The difference between the market value of a project and its cost
• How much value is created from undertaking an investment?
– The first step is to estimate the expected future cash flows.
• Be able to compute the net present value and understand why it is the best decision criterion
• Be able to compute the profitability index and understand its relation to net present value
9-3
Good Decision Criteria
公司理财精要版原书第12版习题库答案Ross12e_Chapter01_TB_AnswerKey
公司理财精要版原书第12版习题库答案Ross12e_Chapter01_TB_AnswerKeyFundamentals of Corporate Finance, 12e (Ross)Chapter 1 Introduction to Corporate Finance1) Which one of the following functions should be the responsibility of the controller rather than the treasurer?A) Depositing cash receiptsB) Processing cost reportsC) Analyzing equipment purchasesD) Approving credit for a customerE) Paying a vendorAnswer: BDifficulty: 1 EasyTopic: Management organization and rolesLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation2) The treasurer of a corporation generally reports directly to the:A) board of directors.B) chairman of the board.C) chief executive officer.D) president.E) vice president of finance.Answer: EDifficulty: 1 EasyTopic: Management organization and rolesLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: RememberAACSB: Reflective ThinkingAccessibility: Keyboard Navigation3) Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?A) The vice president of finance reports to the chairman of the board.B) The chief executive officer reports to the president.C) The controller reports to the chief financial officer.D) The treasurer reports to the president.E) The chief operations officer reports to the vice president of production.Answer: CDifficulty: 1 EasyTopic: Management organization and rolesLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: RememberAACSB: Reflective ThinkingAccessibility: Keyboard Navigation4) An example of a capital budgeting decision is deciding:A) how many shares of stock to issue.B) whether or not to purchase a new machine for the production line.C) how to refinance a debt issue that is maturing.D) how much inventory to keep on hand.E) how much money should be kept in the checking account.Answer: BDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation5) When evaluating the timing of a project's projected cash flows, a financial manager is analyzing:A) the amount of each expected cash flow.B) only the start-up costs that are expected to require cash resources.C) only the date of the final cash flow related to the project.D) the amount by which cash receipts are expected to exceed cash outflows.E) when each cash flow is expected to occur.Answer: EDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation6) Capital structure decisions include determining:A) which one of two projects to accept.B) how to allocate investment funds to multiple projects.C) the amount of funds needed to finance customer purchases of a new product.D) how much debt should be assumed to fund a project.E) how much inventory will be needed to support a project.Answer: DDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation7) The decision to issue additional shares of stock is an example of:A) working capital management.B) a net working capital decision.C) capital budgeting.D) a controller's duties.E) a capital structure decision.Answer: EDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation8) Which one of the following questions is a working capital management decision?A) Should the company issue new shares of stock or borrow money?B) Should the company update or replace its older equipment?C) How much inventory should be on hand for immediate sale?D) Should the company close one of its current stores?E) How much should the company borrow to buy a new building?Answer: CDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation9) Which one of the following is a working capital management decision?A) What type(s) of equipment is (are) needed to complete a current project?B) Should the firm pay cash for a purchase or use the credit offered by the supplier?C) What amount of long-term debt is required to complete a project?D) How many shares of stock should the firm issue to fund an acquisition?E) Should a project should be accepted?Answer: BDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation10) Working capital management decisions include determining:A) the minimum level of cash to be kept in a checking account.B) the best method of producing a product.C) the number of employees needed to work during a particular shift.D) when to replace obsolete equipment.E) if a competitor should be acquired.Answer: ADifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation11) Which one of the following terms is defined as the management of a firm's long-term investments?A) Working capital managementB) Financial allocationC) Agency cost analysisD) Capital budgetingE) Capital structureAnswer: DDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financialBloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation12) Which one of the following terms is defined as the mixture of a firm's debt and equity financing?A) Working capital managementB) Cash managementC) Cost analysisD) Capital budgetingE) Capital structureAnswer: EDifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation13) A firm's short-term assets and its short-term liabilities are referred to as the firm's:A) working capital.B) debt.C) investment capital.D) net capital.E) capital structure.Answer: ADifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financialBloom's: RememberAACSB: Reflective ThinkingAccessibility: Keyboard Navigation14) Which one of the following questions is least likely to be addressed by financial managers?A) How should a product be marketed?B) Should customers be given 30 or 45 days to pay for their credit purchases?C) Should the firm borrow more money?D) Should the firm acquire new equipment?E) How much cash should the firm keep on hand?Answer: ADifficulty: 1 EasyTopic: Financial management decisionsLearning Objective: 01-01 Define the basic types of financial management decisions and the role of the financial manager.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation15) A business owned by a solitary individual who has unlimited liability for the firm's debt is called a:A) corporation.B) sole proprietorship.C) general partnership.D) limited partnership.E) limited liability company.Answer: BDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation16) A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a:A) corporation.B) sole proprietorship.C) general partnership.D) limited partnership.E) limited liability company.Answer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation17) A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:A) general partner.B) sole proprietor.C) limited partner.D) corporate shareholder.E) zero partner.Answer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation18) A business created as a distinct legal entity and treated as a legal "person" is called a(n):A) corporation.B) sole proprietorship.C) general partnership.D) limited partnership.E) unlimited liability company.Answer: ADifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation19) Which one of the following statements concerning a sole proprietorship is correct?A) A sole proprietorship is designed to protect the personal assets of the owner.B) The profits of a sole proprietorship are subject to double taxation.C) The owner of a sole proprietorship is personally responsible for all of the company's debts.D) There are very few sole proprietorships remaining in the U.S. today.E) A sole proprietorship is structured the same as a limited liability company.Answer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation20) Which one of the following statements concerning a sole proprietorship is correct?A) The life of a sole proprietorship is limited.B) A sole proprietor can generally raise large sums of capital quite easily.C) Transferring ownership of a sole proprietorship is easier than transferring ownership of a corporation.D) A sole proprietorship is taxed the same as a C corporation.E) A sole proprietorship is the most regulated form of organization.Answer: ADifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation21) Which of the following individuals have unlimited liability for a firm's debts based on their ownership interest?A) Only general partnersB) Only sole proprietorsC) All stockholdersD) Both limited and general partnersE) Both general partners and sole proprietorsAnswer: EDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation22) The primary advantage of being a limited partner is:A) the receipt of tax-free income.B) the partner's active participation in the firm's activities.C) the lack of any potential financial loss.D) the daily control over the business affairs of the partnership.E) the partner's maximum loss is limited to their capital investment.Answer: EDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation23) A general partner:A) is personally responsible for all partnership debts.B) has no say over a firm's daily operations.C) faces double taxation whereas a limited partner does not.D) has a maximum loss equal to his or her equity investment.E) receives a salary in lieu of a portion of the profits.Answer: ADifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation24) A limited partnership:A) has an unlimited life.B) can opt to be taxed as a corporation.C) terminates at the death of any one limited partner.D) has at least one partner who has unlimited liability for all of the partnership's debts.E) consists solely of limited partners.Answer: DDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation25) A partnership with four general partners:A) distributes profits based on percentage of ownership.B) has an unlimited partnership life.C) limits the active involvement in the firm to a single partner.D) limits each partner's personal liability to 25 percent of the partnership's total debt.E) must distribute 25 percent of the profits to each partner.Answer: EDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation26) One disadvantage of the corporate form of business ownership is the:A) limited liability of its shareholders for the firm's debts.B) double taxation of distributed profits.C) firm's greater ability to raise capital than other forms of ownership.D) firm's potential for an unlimited life.E) firm's ability to issue additional shares of stock.Answer: BDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation27) Which one of the following statements is correct?A) The majority of firms in the U.S. are structured as corporations.B) Corporate profits are taxable income to the shareholders when earned.C) Corporations can have an unlimited life.D) Shareholders are protected from all potential losses.E) Shareholders directly elect the corporate president.Answer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation28) Which one of the following statements is correct?A) A general partnership is legally the same as a corporation.B) Income from both sole proprietorships and partnerships that is taxable is treated as individual income.C) Partnerships are the most complicated type of business to form.D) All business organizations have bylaws.E) Only firms organized as sole proprietorships have limited lives.Answer: BDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financialimplications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation29) The articles of incorporation:A) describe the purpose of the firm and set forth the number of shares of stock that can be issued.B) are amended periodically especially prior to corporate elections.C) explain how corporate directors are to be elected and the length of their terms.D) sets forth the procedures by which a firm regulates itself.E) include only the corporation's name and intended life.Answer: ADifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation30) Corporate bylaws:A) must be amended should a firm decide to increase the number of shares authorized.B) cannot be amended once adopted.C) define the name by which the firm will operate.D) describe the intended life and purpose of the organization.E) determine how a corporation regulates itself.Answer: EDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation31) A limited liability company:A) can only have a single owner.B) is comprised of limited partners only.C) is taxed similar to a partnership.D) is taxed similar to a C corporation.E) generates totally tax-free income.Answer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation32) Which business form is best suited to raising large amounts of capital?A) Sole proprietorshipB) Limited liability companyC) CorporationD) General partnershipE) Limited partnershipAnswer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation33) A ________ has all the respective rights and privileges of a legal person.A) sole proprietorshipB) general partnershipC) limited partnershipD) corporationE) limited liability companyAnswer: DDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation34) Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. Whichform of business entity should these individuals adopt?A) Sole proprietorshipB) Joint stock companyC) Limited partnershipD) General partnershipE) CorporationAnswer: CDifficulty: 2 MediumTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: ApplyAACSB: Knowledge ApplicationAccessibility: Keyboard Navigation35) Sally and Alicia are equal general partners in a business. They are content with their current management and tax situation but are uncomfortable with their unlimited liability. Which form of business entity should they consider as a replacement to their current arrangement assuming they wish to remain the only two owners of the business?A) Sole proprietorshipB) Joint stock companyC) Limited partnershipD) Limited liability companyE) CorporationAnswer: DDifficulty: 2 MediumTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: ApplyAACSB: Knowledge ApplicationAccessibility: Keyboard Navigation36) The growth of both sole proprietorships and partnerships is frequently limited by the firm's:A) double taxation.B) bylaws.C) inability to raise cash.D) limited liability.E) agency problems.Answer: CDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation37) Corporate dividends are:A) tax-free because the income is taxed at the personal level when earned by the firm.B) tax-free because they are distributions of aftertax income.C) tax-free since the corporation pays tax on that income when it is earned.D) taxed at both the corporate and the personal level when the dividends are paid to shareholders.E) taxable income of the recipient even though that income was previously taxed.Answer: EDifficulty: 1 EasyTopic: Forms of business organizationLearning Objective: 01-03 Articulate the financial implications of the different forms of business organization.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation38) Financial managers should primarily focus on the interests of:A) stakeholders.B) the vice president of finance.C) their immediate supervisor.D) shareholders.E) the board of directors.Answer: DDifficulty: 1 EasyTopic: Goal of financial managementLearning Objective: 01-02 Explain the goal of financial management.Bloom's: UnderstandAACSB: Reflective ThinkingAccessibility: Keyboard Navigation39) Which one of the following best states the primary goal of financial management?A) Maximize current dividends per shareB) Maximize the current value per shareC) Increase cash flow and avoid financial distressD) Minimize operational costs while maximizing firm efficiencyE) Maintain steady growth while increasing current profitsAnswer: BDifficulty: 1 EasyTopic: Goal of financial managementLearning Objective: 01-02 Explain the goal of financial management.Bloom's: RememberAACSB: Reflective ThinkingAccessibility: Keyboard Navigation40) Which one of the following best illustrates that the management of a firm is adhering to the。
Chapter_09CapitalBudgetingandRisk(公司理财原理,B
Category
DiscoR unatte
Specuelavteivntures
30%
Nepwroducts
20%
Expansoiofenxistinbgusiness15% (CompCanOyC)
Coismt provet,m kneonwnntoeclohgy 10%
McGraw Hill/Irwin
1 (Low betas)
40
62
McGraw Hill/Irwin
Source: Sharpe and Cooper (1972)
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 14
Company Cost of Capital
the slope of the SML and thus Beta Regression analysis can be used to find Beta
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
AVG B of assets = 1.3
McGraw Hill/Irwin
Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 16
Capital Structure
Capital Structure - the mix of debt & equity within a company Expand CAPM to include CS
公司理财翻译伯克
权益资本成本可以通过CAPM（资本资产定价模型）等模型进行计算，债务资本成本则可以通过利率、债券评级等因素确定。
资本成本的影响因素包括市场环境、公司风险、资金需求等。
在确定最优资本结构时，公司需要综合考虑各种因素，包括财务风险、融资成本、市场环境等，以实现公司价值的最大化。
合理的资本结构和资本成本可以为公司带来更大的竞争优势和市场份额，提高公司的盈利能力。
资本结构和资本成本是相互关联的两个概念，资本结构决策会影响公司的资本成本，而资本成本也会对公司的融资方式和资本结构产生影响。
投资决策
03
确定投资目标
明确公司的投资目标，如提高市场份额、降低成本、增加收益等。
评估投资机会
收集和筛选潜在的投资项目，评估其潜在的收益和风险。
制定投资计划
根据投资目标，制定具体的投资计划，包括投资金额、投资方式、预期回报等。
实施投资计划
按照投资计划进行投资，并跟踪投资的进展和效果。
对投资项目进行财务分析，评估其预期的收益和风险。
财务分析
对投资项目的风险进行评估，确定风险的大小和性质。
风险评估
详细描述
总结词：公司理财的领域包括投资决策、融资决策、营运资金管理和股利分配等，涵盖了公司财务管理的各个方面。
资本结构与资本成本
02
资本结构是指公司通过各种方式筹集资金的比例关系，包括权益资本和债务资本。
常见的资本结构调整方式包括增发股票、发行债券、资产剥离等。
资本结构决策需要考虑公司的财务状况、经营风险、税收政策等因素，以实现公司价值最大化的目标。
公司理财的创新与发展
06
随着科技的发展，公司理财正在向数字化转型，通过大数据、云计算等技术提高财务决策效率和准确性。
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Category
Discount Rate
Speculative ventures
30%
New products
20%
Expansion of existing business 15% (Company COC)
Cost improvement, known technology
10%
McGraw Hill/Irwin
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 10
Measuring Betas
General Motors Price data – Feb 95 – Jul 01
9- 9
Measuring Betas
General Motors Price data – Aug 88- Jan 95
R2 = .13 B = 0.80
GM r
Slope determined from plotting the line of best fit.
Market return (%)
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 5
Company Cost of Capital
?A company's cost of capital can be compared to the CAPM required return
the slope of the SML and thus Beta ?Regression analysis can be used to find Beta
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
Required
return
13
5.5
SML
Company Cost of Capital
McGraw Hill/Irwin
0
1.26
Project Beta
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 8
Measuring Betas
Dell Computer Price data – Feb 95 – Jul 01
9- 6
Measuring Betas
?The SML shows the relationship between return and risk
?CAPM uses Beta as a proxy for risk ?Other methods can be employed to determine
Principles of Corporate Finance
Seventh Edition
Richard A. Brealey Stewart C. Myers
Chapter 9
Capital Budgeting and Risk
Slides by Matthew Will
McGraw Hill/Irwin
9- 7
Measuring Betas
Dell Computer Price data – Aug 88- Jan 95
R2 = பைடு நூலகம்11 B = 1.62
Dell r
Slope determined from plotting the line of best fit.
Market return (%)
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 2
Topics Covered
?Company and Project Costs of Capital ?Measuring the Cost of Equity ?Capital Structure and COC ?Discount Rates for Intl. Projects ?Estimating Discount Rates ?Risk and DCF
R2 = .27 B = 2.02
Dell r
Slope determined from plotting the line of best fit.
Market return (%)
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 3
Company Cost of Capital
?A firm's value can be stated as the sum of the value of its various assets
Firm value ? PV(AB) ? PV(A) ? PV(B)
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved
9- 4
Company Cost of Capital
R2 = .25 B = 1.00
GM r
Slope determined from plotting the line of best fit.
Market return (%)
McGraw Hill/Irwin
Copyright ? 2003 by The McGraw-Hill Companies, Inc. All rights reserved