Applied Corporate Finance THE FOUNDATIONS
Corporate finance专业词汇手册
Chapter 1: introduction to corporate financeCorporate finance（financial management）：公司财务、公司金融、财务管理Capital budgeting：资本预算Capital structure：资本结构Working capital management：流动资本管理Sole proprietorship：独资制、单一业主制Partnership：合伙制Corporation：公司、股份公司Profit maximization ：利润最大化Agency relation：委托代理关系Agency problem：委托代理问题Managerial compensation：管理层报酬Corporate control：公司控制Primary market ：一级市场、发行市场Secondary market：二级市场、交易市场Chapter 2: financial statements, taxes and cash flow Financial statements: 财务报表Cash flow:现金流Accounting value:会计Net income：净利润Depreciation:折旧The balance sheet：资产负债表The income statement 损益表Current asset流动资产Fixed asset固定资产Inventory存货Current liabilities流动负债Bond债券Bondholder债券持有人Shareholder’s equity/common equity/owner’s equity股东权益Balance sheet identity资产负债表等式Net working capital 营运资本Capital spending:资本支出Liquidity：流动性Generally accepted accounting principles：公认会计准则Historical cost：历史成本The income statement：损益表Operating cash flow：经营现金流Earnings per share（EPS）每股收益Earnings before interest and taxes(EBIT):息税前利润Revenue ：收入Chapter 3: working with financial statementsShort-term solvency/liquidity ratios ：短期偿债能力、流动比率Long-term solvency/financial leverage ratios：长期偿债能力、财务杠杆比率Asset management or turnover ratios：资产周转比率Profitability ratios：盈利比率Market value ratios：市场价值比率Quick (acid-test ratio)：速动比率/酸性比率Debt-equity ratio：债务权益比Equity multiplier：权益乘数Long-term debt ratio：长期债务比率Inventory turnover：存货周转率Days’ sales in inventory：存货周转天数Receivables turnover ：应收账款周转率Days’ sales in receivables：应收账款周转天数Return on assets：资产报酬率Return on equity：权益报酬率Price-earning ratio ：市盈率Market-to-book ratio ：市净率Chapter 5 and chapter 6: discounted cash flow valuationtime value of money: 货币时间价值future value：终值compounding/interest on interest：复利/利滚利present value：现值discount rate：贴现率discounted cash flow (DCF) valuation：贴现现金流股价Annuities：年金Perpetuities：永续年金Preferred stock：优先股Common stock:普通股Interest-only loan：纯利息贷款Amortized loan：分期偿还贷款Chapter 7 and chapter 8: interest rates ,bond valuation and stock valuation Bond:债券Bond’s coupons：债券票面利息Face value/ par value：面值Par value bond：平价债券Bond’s time to maturity：债券到期Yield to maturity (YTM)：到期收益率Discount bond：折价债券Premium bond: 溢价债券Interest rate risk：利率风险Semiannual coupons：一年付息两次债券Zero coupon bond：零息债券Floating-rate bond：浮动利率债券Common stock:普通股The dividend growth model：股利增长模型Cumulative voting：累计投票Straight voting：直接选举Chapter 9: net present value and other investment criteria Net present value: 净现值Payback rule：回收期Discounted payback：折现回收期average accounting return：平均会计报酬率Internal rate of return：内部报酬率Mutually exclusive investments：互斥投资项目Profitability index：获利能力指数Chapter 10 and chapter 11:Making capital investment decisions and project analysis Incremental cash flows:增量现金流Sunk costs：沉没成本Opportunity costs：机会成本Side effects：副作用Financing costs：融资成本Scenario analysis：情境分析Sensitivity analysis：敏感性分析Simulation analysis：模拟分析Break-even analysis：盈亏分析Fixed costs：固定成本Variable costs：变动成本Average cost versus marginal cost：平均成本/边际成本Operating leverage：经营杠杆Financial leverage：财务杠杆Chapter 12 and chapter 13: risk and return Risk premium：风险溢价Variability of returns：报酬率的变动Standard deviation：标准差Variance：方差Normal distribution：正态分布Arithmetic averages：算术均值Geometric averages：几何均值Capital market efficiency：资本市场有效性The efficient markets hypothesis (EMH)：有效市场假说Weak form efficient：弱有效Semi strong form efficient：半强有效Strong form efficient：强有效Chapter 12: return, risk and the security market lineExpected portfolio returns：期望组合收益率Portfolio risk：组合风险Security market line：证券市场线Diversification：多元化Portfolio risk：组合风险Systematic risk：系统风险Unsystematic risk：非系统风险Capital asset pricing model (CAPM)Chapter 14: cost of capital Weighted average cost of capital (WACC)Cost of capital：资本成本Cost of equity：股权成本Risk-free rate：无风险收益率Market risk premium：市场风险溢价Flotation costs：发行成本Chapter 15: raising capitalVenture capital:风险资本Private equity：私募股权Public company/listed company：上市公司Go public：上市General cash offer：现金发行Rights offer：认股权发行/配股Initial public offering：首次公开发行Underwriter：承销商Chapter 16 and chapter 17: capital structure policy and dividend policy Bankruptcy costs ：破产成本Static theory of capital structure：资本结构静态权衡理论Pecking-order theory：啄食理论Cash dividend：现金股利Stock dividend ：股票股利Announcement date：宣告日Ex-dividend date：除息日Record date ：登记日Stock repurchase：股票回购Stock split：股票分拆。
(完整word版)CorporateFinance重点知识整理
(完整word版)CorporateFinance重点知识整理第一章导论1. 公司目标：为所有者创造价值公司价值在于其产生现金流能力。
2。
财务管理的目标：最大化现有股票的每股现值。
3。
公司理财可以看做对一下几个问题进行研究：1。
资本预算:公司应该投资什么样的长期资产。
2. 资本结构：公司如何筹集所需要的资金。
3. 净运营资本管理:如何管理短期经营活动产生的现金流。
4. 公司制度的优点:有限责任,易于转让所有权，永续经营。
缺点：公司税对股东的双重课税。
第二章会计报表与现金流量资产= 负债+ 所有者权益（非现金项目有折旧、递延税款）EBIT（经营性净利润）= 净销售额—产品成本—折旧EBITDA = EBIT + 折旧及摊销现金流量总额CF(A) = 经营性现金流量—资本性支出—净运营资本增加额= CF(B）+ CF（S)经营性现金流量OCF = 息税前利润+ 折旧- 税资本性输出= 固定资产增加额+ 折旧净运营资本= 流动资产- 流动负债第三章财务报表分析与财务模型1. 短期偿债能力指标（流动性指标）流动比率= 流动资产/流动负债（一般情况大于一）速动比率= （流动资产—存货)/流动负债(酸性实验比率）现金比率= 现金/流动负债流动性比率是短期债权人关心的，越高越好；但对公司而言,高流动性比率意味着流动性好，或者现金等短期资产运用效率低下。
对于一家拥有强大借款能力的公司，看似较低的流动性比率可能并非坏的信号2。
长期偿债能力指标（财务杠杆指标)负债比率= (总资产—总权益)/总资产or （长期负债+ 流动负债)/总资产权益乘数= 总资产/总权益= 1 + 负债权益比利息倍数= EBIT/利息现金对利息的保障倍数（Cash coverage radio）= EBITDA/利息3。
资产管理或资金周转指标存货周转率= 产品销售成本/存货存货周转天数= 365天/存货周转率应收账款周转率= （赊）销售额/应收账款总资产周转率= 销售额/总资产= 1/资本密集度4. 盈利性指标销售利润率= 净利润/销售额资产收益率ROA = 净利润/总资产权益收益率ROE = 净利润/总权益(完整word版)CorporateFinance重点知识整理5. 市场价值度量指标市盈率= 每股价格/每股收益EPS 其中EPS = 净利润/发行股票数市值面值比= 每股市场价值/每股账面价值企业价值EV = 公司市值+ 有息负债市值- 现金EV乘数= EV/EBITDA6. 杜邦恒等式ROE = 销售利润率（经营效率）x总资产周转率(资产运用效率）x权益乘数(财杠）ROA = 销售利润率x总资产周转率7. 销售百分比法假设项目随销售额变动而成比例变动，目的在于提出一个生成预测财务报表的快速实用方法。
《corporate finance》罗斯版英文版 Chapter 06书本课后习题及答案
Chapter 061.The changes in a firm's future cash flows that are a direct consequence of accepting a project arecalled _____ cash flows.A. i ncrementalB. s tand-aloneC. o pportunityD. n et present valueE. e rosion2.The annual annuity stream of payments with the same present value as a project's costs is calledthe project's _____ cost.A. i ncrementalB. s unkC. o pportunityD. e rosionE. e quivalent annual3. A cost that has already been paid, or the liability to pay has already been incurred, is a(n):A. s alvage value expense.B. n et working capital expense.C. s unk cost.D. o pportunity cost.E. e rosion cost.4.The most valuable investment given up if an alternative investment is chosen is a(n):A. s alvage value expense.B. n et working capital expense.C. s unk cost.D. o pportunity cost.E. e rosion cost.5. A decrease in a firm’s current cash flows resulting from the implementation of a new project isreferred to as:A. s alvage value expenses.B. n et working capital expenses.C. s unk costs.D. o pportunity costs.E. e rosion costs.6.The depreciation method currently allowed under U.S. tax law governing the accelerated write-offof property under various lifetime classifications is called _____ depreciation.A. F IFOB. M ACRSC. s traight-lineD. s um-of-years digitsE. c urvilinear7.The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense iscalled the:A. a ftertax depreciation savings.B. d epreciable basis.C. d epreciation tax shield.D. o perating cash flow.E. a ftertax salvage value.8.The cash flow from a project is computed as the:A. n et operating cash flow generated by the project, less any sunk costs and erosion costs.B. s um of the incremental operating cash flow and aftertax salvage value of the project.C. n et income generated by the project, plus the annual depreciation expense.D. s um of the incremental operating cash flow, capital spending, and net working capital cashflows incurred by the project.E. s um of the sunk costs, opportunity costs, and erosion costs of the project.9.Interest rates or rates of return on investments that have been adjusted for the effects of inflationare called _____ rates.A. r ealB. n ominalC. e ffectiveD. s trippedE. c oupon10.The increase you realize in buying power as a result of owning an investment is referred to as the_____ rate of return.A. i nflatedB. r ealizedC. n ominalD. r ealE. r isk-free11.The pro forma income statement for a cost reduction project:A. w ill reflect a reduction in the sales of the firm.B. w ill generally reflect no incremental sales.C. h as to be prepared reflecting the total sales and expenses of the entire firm.D. c annot be prepared due to the lack of any project related sales.E. w ill always reflect a negative project operating cash flow.12.One purpose of identifying all of the incremental cash flows related to a proposed project is to:A. i solate the total sunk costs so they can be evaluated to determine if the project will add valueto the firm.B. e liminate any cost which has previously been incurred so that it can be omitted from theanalysis of the project.C. m ake each project appear as profitable as possible for the firm.D. i nclude both the proposed and the current operations of a firm in the analysis of the project.E. i dentify any and all changes in the cash flows of the firm for the past year so they can beincluded in the analysis.13.Sunk costs include any cost that:A. w ill change if a project is undertaken.B. w ill be incurred if a project is accepted.C. h as previously been incurred and cannot be changed.D. w ill be paid to a third party and cannot be refunded for any reason whatsoever.E. w ill occur if a project is accepted and once incurred, cannot be recouped.14.You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up andyou are trying to decide whether to fix them or trade the car in for a newer model. In analyzing the brake situation, the $500 you spent fixing the transmission is a(n) _____ cost.A. o pportunityB. f ixedC. i ncrementalD. s unkE. r elevant15.Erosion can be explained as the:A. a dditional income generated from the sales of a newly added product.B. l oss of current sales due to a new project being implemented.C. l oss of revenue due to employee theft.D. l oss of revenue due to customer theft.E. l oss of cash due to the expenses required to fix a parking lot after a heavy rain storm.16.Which one of these is an example of erosion that should be included in project analysis?A. T he anticipated loss of current sales when a new product is launched.B. T he expected decline in sales as a new product ages.C. T he reduction in your sales that occurs when a competitor introduces a new product.D. T he sudden loss of sales due to a major employer in your community implementing massivelayoffs.E. T he reduction in sales price that will most likely be required to sell inventory that has aged.17.Which one of the following should be excluded from the analysis of a project?A. e rosion costsB. i ncremental fixed costsC. i ncremental variable costsD. s unk costsE. o pportunity costs18.All of the following are anticipated effects of a proposed project. Which of these should be considered when computing the cash flow for the final year of a project?A. o perating cash flow and salvage valuesB. s alvage values and net working capital recoveryC.operating cash flow, net working capital recovery, salvage valuesD. n et working capital recovery and operating cash flowE.operating cash flow only19.Changes in the net working capital:A. c an affect the cash flows of a project every year of the project's life.B. o nly affect the initial cash flows of a project.C. a re included in project analysis only if they represent cash outflows.D. a re generally excluded from project analysis due to their irrelevance to the total project.E. a ffect the initial and the final cash flows of a project but not the cash flows of the middle years.20.The net working capital of a firm will decrease if there is:A. a decrease in accounts payable.B. a n increase in inventory.C. a decrease in accounts receivable.D. a n increase in the firm's checking account balance.E. a decrease in fixed assets. working capital:A. c an be ignored in project analysis because any expenditure is normally recouped by the end ofthe project.B. r equirements generally, but not always, create a cash inflow at the beginning of a project.C. e xpenditures commonly occur at the end of a project.D. i s frequently affected by the additional sales generated by a new project.E. i s the only expenditure where at least a partial recovery can be made at the end of a project.22.A company which uses the MACRS system of depreciation:A. w ill have equal depreciation costs each year of an asset's life.B. w ill expense the largest percentage of the cost during an asset’s first year of life.C. c an depreciate the cost of land, if it so desires.D. w ill write off the entire cost of an asset over the asset's class life.E. c annot expense any of the cost of a new asset during the first year of the asset's life.23.Champion Toys just purchased some MACRS 5-year property at a cost of $230,000. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The book value of the asset as of the end of Year 2 can be calculated as:A. $230,000 × (1 −.20 −.32).B. $230,000 × ([1 - (.20 × .32)].B. $230,000 × (1 - .20) × (1 - .32).C. $230,000 / (1 - .20 - .32).D. $230,000 - ($230,000 × .20 × .32).24.Pete’s Garage just purchased some equipment at a cost of $650,000. What is the propermethodology for computing the depreciation expense for Year 3 if the equipment is classified as 5-year property for MACRS? The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively.A. $650,000 ×(1 − .20) ×(1 −.32) ×(1 −.192)B. $650,000 ×(1 − .20) ×(1 −.32)C. $650,000 ×(1 − .20) ×(1 − .32) × .192)D. $650,000 ×(1 −.192)E. $650,000 ×.19225.The book value of an asset is primarily used to compute the:A. a nnual depreciation tax shield.B. a mount of cash received from the sale of an asset.C. a mount of tax saved annually due to the depreciation expense.D. a mount of tax due on the sale of an asset.E. c hange in depreciation needed to reflect the market value of the asset.26.The salvage value of an asset creates an aftertax cash flow in an amount equal to the:A. s ales price of the asset.B. s ales price minus the book value.C. s ales price minus the tax due based on the sales price minus the book value.D. s ales price plus the tax due based on the sales price minus the book value.E. s ales price plus the tax due based on the book value minus the sales price.27.The pretax salvage value of an asset is equal to the:A. b ook value if straight-line depreciation is used.B. b ook value if MACRS depreciation is used.C. m arket value minus the book value.D. b ook value minus the market value.E. m arket value.28.A project's operating cash flow will increase when the:A. d epreciation expense increases.B. s ales projections are lowered.C. i nterest expense is lowered.D. n et working capital requirement increases.E. e arnings before interest and taxes decreases.29.The cash flows of a project should:A. b e computed on a pretax basis.B. i nclude all sunk costs and opportunity costs.C. i nclude all incremental and opportunity costs.D. b e applied to the year when the related expense or income is recognized by GAAP.E. i nclude all financing costs related to new debt acquired to finance the project.30.Assume a firm has no interest expense or extraordinary items. Given this, the operating cash flow can be computed as:A. E BIT - Taxes.B. E BIT × (1 - Tax rate) + Depreciation × Tax rate.C. (Sales - Costs) × (1 - Tax rate).D. E BIT - Depreciation + Taxes.E.Net income + Depreciation.31.The bottom-up approach to computing the operating cash flow applies only when:A. b oth the depreciation expense and the interest expense are equal to zero.B. t he interest expense is equal to zero.C. t he project is a cost-cutting project.D. n o fixed assets are required for the project.E. t axes are ignored and the interest expense is equal to zero.32.The top-down approach to computing the operating cash flow:A. i gnores all noncash items.B. a pplies only if a project produces sales.C. c an only be used if the entire cash flows of a firm are included.D. i s equal to Sales −Costs −Taxes + Depreciation.E. i ncludes the interest expense related to a project.33.For a profitable firm, an increase in which one of the following will increase the operating cashflow?A. e mployee salariesB. o ffice rentC. b uilding maintenanceD. d epreciationE. e quipment rental34.Tax shield refers to a reduction in taxes created by:A. a reduction in sales.B. a n increase in interest expense.C. n oncash expenses.D. a project's incremental expenses.E. o pportunity costs.35.A project which is designed to improve the manufacturing efficiency of a firm but will generate noadditional sales revenue is referred to as a(n) _____ project.A. s unk costB. o pportunityC. c ost-cuttingD. r evenue-cuttingE. r evenue-generating36.Toni's Tools is comparing machines to determine which one to purchase. The machines sell fordiffering prices, have differing operating costs, differing machine lives, and will be replaced when worn out. These machines should be compared using:A. n et present value only.B. b oth net present value and the internal rate of return.C. t heir equivalent annual costs.D. t he depreciation tax shield approach.E. t he replacement parts approach.37.The equivalent annual cost method is useful in determining:A. t he annual operating cost of a machine if the annual maintenance is performed versus whenthe maintenance is not performed as recommended.B. t he tax shield benefits of depreciation given the purchase of new assets for a project.C. o perating cash flows for cost-cutting projects of equal duration.D. w hich one of two machines to acquire given equal machine lives but unequal machine costs.E. w hich one of two machines to purchase when the machines are mutually exclusive, havedifferent machine lives, and will be replaced once they are worn out.38.Marshall's purchased a corner lot five years ago at a cost of $498,000 and then spent $63,500 ongrading and drainage so the lot could be used for storing outdoor inventory. The lot was recently appraised at $610,000. The company now wants to build a new retail store on the site. Thebuilding cost is estimated at $1.1 million. What amount should be used as the initial cash flow for this building project?A. $1,661,500B. $1,100,000C. $1,208,635D. $1,710,000E. $1,498,00039.Samson's purchased a lot four years ago at a cost of $398,000. At that time, the firm spent$289,000 to build a small retail outlet on the site. The most recent appraisal on the propertyplaced a value of $629,000 on the property and building. Samson’s now wants to tear down the original structure and build a new strip mall on the site at an estimated cost of $2.3 million. What amount should be used as the initial cash flow for new project?A. $2,987,000B. $2,242,000C. $2,058,000D. $2,300,000E. $2,929,00040.Jamestown Ltd. currently produces boat sails and is considering expanding its operations toinclude awnings. The expansion would require the use of land the firm purchased three years ago at a cost of $142,000 that is currently valued at $137,500. The expansion could use someequipment that is currently sitting idle if $6,700 of modifications were made to it. The equipment originally cost $139,500 six years ago, has a current book value of $24,700, and a current market value of $39,000. Other capital purchases costing $780,000 will also be required. What is the amount of the initial cash flow for this expansion project?A. $953,400B. $962,300C. $948,900D. $927,800E. $963,20041.The Boat Works currently produces boat sails and is considering expanding its operations toinclude awnings. The expansion would require the use of land the firm purchased three years ago at a cost of $197,000 that is currently valued at $209,500. The expansion could use someequipment that is currently sitting idle if $7,500 of modifications were made to it. The equipment originally cost $387,500 five years ago, has a current book value of $132,700, and a current market value of $139,000. Other capital purchases costing $520,000 will also be required. What is the value of the opportunity costs that should be included in the initial cash flow for theexpansion project?A. $425,000B. $485,000C. $329,700D. $348,500E. $537,20042.Walks Softly sells customized shoes. Currently, it sells 14,800 pairs of shoes annually at anaverage price of $59 a pair. It is considering adding a lower-priced line of shoes that will be priced at $39 a pair. Walks Softly estimates it can sell 6,000 pairs of the lower-priced shoes but will sell 3,500 less pairs of the higher-priced shoes by doing so. What annual sales revenue should be used when evaluating the addition of the lower-priced shoes?A. $27,500B. $24,000C. $31,300D. $789,100E. $900,70043.Foamsoft sells customized boat shoes. Currently, it sells 16,850 pairs of shoes annually at anaverage price of $79 a pair. It is considering adding a lower-priced line of shoes which sell for $49a pair. Foamsoft estimates it can sell 5,000 pairs of the lower-priced shoes but will sell 1,250 lesspairs of the higher-priced shoes by doing so. What is the estimated value of the erosion cost that should be charged to the lower-priced shoe project?A. $138,750B. $146,250C. $98,750D. $52,000E. $123,24044.Sue purchased a house for $89,000, spent $56,000 upgrading it, and currently had it appraised at$212,900. The house is being rented to a family for $1,200 a month, the maintenance expenses average $200 a month, and the property taxes are $4,800 a year. If she sells the house she will incur $20,000 in expenses. She is considering converting the house into professional officespace. What opportunity cost, if any, should she assign to this property if she has been renting it for the past two years? A. $178,500A. $120,000B. $185,000C. A NSD. $192,900D. $232,90045.Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motorhomes, and 2,800 pop-up trailers each year. Jamie is considering adding a mid-range camper and expects that if she does so she can sell 1,500 of them. However, if the new camper is added, Jamie expects that her Class A sales will decline to 850 units while the Class C camper sales decline to 2,000. The sales of pop-ups will not be affected. Class A motor homes sell for anaverage of $140,000 each. Class C homes are priced at $59,500 and the pop-ups sell for $5,000 each. The new mid-range camper will sell for $42,900. What is the erosion cost of adding the mid-range camper?A. $54,250,000B. $46,900,000C. $53,750,000D. $63,150,000E. $78,750,00046.Ernie's Electrical is evaluating a project which will increase sales by $50,000 and costs by$30,000. The project will cost $150,000 and will be depreciated straight-line to a zero book value over the 10-year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?A. $19,200B. $15,000C. $21,300D. $17,900E. $18,30047.Kurt's Cabinets is looking at a project that will require $80,000 in fixed assets and another$20,000 in net working capital. The project is expected to produce sales of $110,000 withassociated costs of $70,000. The project has a 4-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 35 percent. What is the operating cash flow for this project?A. $7,000B. $13,000C. $27,000D. $33,000E. $40,00048.Peter's Boats has sales of $760,000 and a profit margin of 5 percent. The annual depreciationexpense is $80,000. What is the amount of the operating cash flow if the company has no long-term debt?A. $34,000B. $86,400C. $118,000D. $120,400E. $123,90049.Samoa's Tools has sales of $760,000 and a profit margin of 8 percent. The annual depreciationexpense is $50,000. What is the amount of the operating cash flow if the company has no long-term debt?A. $50,000B. $60,800C. $110,800D. $810,000E. $930,00050.Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. Thefirm has a tax rate of 34 percent and a profit margin of 6 percent. The firm has no interestexpense. What is the amount of the operating cash flow?A. $49,384B. $52,616C. $54,980D. $58,340E. $114,34051.The By-Way has sales of $435,000, costs of $254,000, depreciation of $35,000, interest expenseof $22,000, and taxes of $43,400. What is the amount of the operating cash flow?A. $115,600B. $157,900C. $137,600D. $322,100E. $114,34052.Ben's Border Café is considering a project that will produce sales of $16,000 and increase cashexpenses by $10,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. What is the amount of the operating cash flow using the top-down approach?A. $4,000B. $4,500C. $6,000D. $7,500E. $8,50053.Camille's Café is considering a project that will not produce any sales but will decrease cashexpenses by $12,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. What is the amount of the operating cash flow using the top-down approach?A. $15,000B. $10,500C. $5,500D. $17,500E. $13,50054.Ronnie's Coffee House is considering a project which will produce sales of $6,000 and increasecash expenses by $2,500. If the project is implemented, taxes will increase by $1,300. The additional depreciation expense will be $1,000. An initial cash outlay of $2,000 is required for net working capital. What is the amount of the operating cash flow using the top-down approach?A. $200B. $1,500C. $2,200D. $3,500E. $4,20055.A project will increase sales by $60,000 and cash expenses by $51,000. The project will cost$40,000 and will be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 35 percent. What is the operating cash flow of the project using the tax shield approach?A. $5,850B. $8,650C. $9,350D. $9,700E. $10,35056.A project will increase sales by $140,000 and cash expenses by $95,000. The project will cost$100,000 and will be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34 percent. What is the value of the depreciation tax shield?A. $8,500B. $17,000C. $22,500D. $25,000E. $37,75057.Lee's Furniture just purchased $24,000 of fixed assets that are classified as 5-year MACRSproperty. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What is the amount of the depreciation expense for the third year?A. $2,304B. $2,507C. $2,765D. $4,608E. $4,80058.Lew just purchased $67,600 of equipment that is classified as 5-year MACRS property. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. What will the book value of this equipment be at the end of four years should he decide to resell the equipment at that point in time?A. $11,681.28B. $18,280.20C. $17,040.00D. $19,468.80E. $22,672.0059.Northern Enterprises just purchased $1,900 of fixed assets that are classified as 3-year MACRSproperty. The MACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent for Years 1 to 4, respectively. What is the amount of the depreciation expense for Year 2?A. $562.93B. $633.27C. $719.67D. $844.36E. $1,477.6360.The Galley purchased some 3-year MACRS property two years ago at a cost of $19,800. TheMACRS rates are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent. The firm no longer uses this property so is selling it today at a price of $13,500. What is the amount of the pretax profit on the sale?A. $11,140.48B. $9,098.46C. $10,500.00D. $8,016.67E. $10,702.4061.Three years ago, you purchased some 5-year MACRS equipment at a cost of $135,000. TheMACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. You sold the equipment today for $82,500. Which of these statements is correct if your tax rate is 34 percent?A. T he tax due on the sale is $14,830.80.B. T he book value today is $40,478.C. T he book value today is $37,320.D. T he taxable amount on the sale is $47,380.E. T he tax refund from the sale is $13,219.20.62.Custom Cars purchased some $39,000 of fixed assets two years ago that are classified as 5-yearMACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent,11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The tax rate is 34 percent. If theassets are sold today for $19,000, what will be the aftertax cash flow from the sale?A. $16,358.88B. $17,909.09C. $18,720.00D. $18,904.80E. $19,000.0063.Winslow Motors purchased $225,000 of MACRS 5-year property. The MACRS rates are 20percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The tax rate is 34 percent. If the firm sells the asset after five years for $10,000, what will be the aftertax cash flow from the sale?A. $8,993.60B. $8,880.20C. $11,006.40D. $7,770.40E. $12,892.0064.A project is expected to create operating cash flows of $26,500 a year for four years. The initialcost of the fixed assets is $62,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?A. $19,208.11B. $14,028.18C. $15,306.09D. $17,396.31E. $21,954.1765.A project will produce operating cash flows of $45,000 a year for four years. During the life of theproject, inventory will be lowered by $30,000 and accounts receivable will increase by $15,000.Accounts payable will decrease by $10,000. The project requires the purchase of equipment at an initial cost of $120,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating a $25,000 aftertax cash inflow. At the end of the project, net working capital will return to its normal level. What is the net present value of this project given a required return of 15 percent?A. $23,483.48B. $16,117.05C. $24,909.09D. $22,037.86E. $19,876.0266.A project will produce an operating cash flow of $7,300 a year for three years. The initialinvestment for fixed assets will be $11,600, which will be depreciated straight-line to zero over the asset’s 4-year life. The project will require an initial $500 in net working capital plus an additional $500 every year with all net working capital levels restored to their original levels when the project ends. The fixed assets can be sold for an estimated $2,500 at the end of the project, the tax rate is 34 percent, and the required rate of return is 12 percent. What is the net present value of the project?A. $7,532.27B. $9,896.87C. $7,072.72D. $6,353.41E. $8,398.2967.Matty's Place is considering the installation of a new computer system that will cut annualoperating costs by $12,000. The system will cost $42,000 to purchase and install. This system is expected to have a 5-year life and will be depreciated to zero using straight-line depreciation.What is the amount of the earnings before interest and taxes for each year of this project?A. −$20,400B. $5,400C. $3,600D. $12,000E. $8,400。
《Corporate Finance (公司金融学)》课件 (11)
• In efficient markets, profitable arbitrage opportunities will quickly disappear.
FS = Surprise in the exchange rate = actual – expected = 0% - 10% = -10%
R R 2.305% 1.50 (3%) 0.50 (10%) 1%
Systematic Risk and Betas: Example
R R 2.305% 1.50(3%) 0.50 FS 1%
Chapter Eleven
11 An AlternativeCVoirepworaotefFRiniasnkce
and Return: The APT Ross • Westerfield • Jaffe Sixth Edition
Sixth Edition
Chapter Outline
11.1 Factor Models: Announcements, Surprises, and Expected Returns
Systematic Risk and Betas: Example
R R 2.30 FI 1.50 FGDP 0.50 FS 1%
We must decide what surprises took place in the systematic factors.
If it was the case that the inflation rate was expected to be by 3%, but in fact was 8% during the time period, then
澳洲国立大学金融数学硕士专业课程
澳洲国立大学金融数学硕士专业课程1.金融硕士Master of Finance（2年制，共修96学分）属于授课型项目，是澳洲最受欢迎的金融硕士项目之一。
本科金融或其相近专业领域毕业的学生，最多可抵24个学分（一个学期）。
研究生相关专业可抵48学分，也就是说第一年的基础课程可以跳过，直接进行二年级的学习。
该专业为没有金融背景的学生提供机会，帮助学生获得金融专业知识的提升，打下扎实的金融理论基础。
此课程受CFA认证。
（1）研一课程：48学分必修课：42学分BUSN7008 Financial Statements and Reporting 财物报表与报告FINM7006 Foundations of Finance 金融学基础FINM7007 Applied Corporate Finance 应用企业金融FINM7008 Applied Investments 应用投资FINM7041 Applied Derivatives 应用金融衍生品FINM7044 Applied Valuation 应用评估STAT7055 Introductory Statistics for Business and Finance 商业与金融概述选修课：6学分（二选一）ECON8069 Business Economics 企业经济学STAT6046 Financial Mathematics 财务数学（2）研二课程：48分FINM8004 Advanced Corporate Finance 高级企业金融FINM8006 Advanced Investments 高级投资FINM8007 Topics in International Finance 国际金融学FINM8009 Derivatives: Markets, Valuation and Risk Management 金融衍生品：市场、评估和风险管理FINM8014 Applied Financial Intermediation and Debt Markets 金融中介和债务市场应用FINM8016 Portfolio Construction 资产组合架构FINM8017 Trading and Markets 贸易与市场FINM8100 Applied Project in Finance 金融应用项目如果学生第1年考试的GPA没有到达60%，就没有办法读研二的课程，以及只能拿到财务与精算（Finance and Actuarial Statistics）的diploma（毕业证书），不能获得相关的硕士学位。
公司金融课后习题罗斯
第一章Corporate finance（公司财务）是金融学的分支学科，用于考察公司如何有效地利用各种融资渠道，获得最低成本的资金来源，并形成合适的资本结构（capital structure）；还包括企业投资、利润分配、运营资金管理及财务分析等方面。
它会涉及到现代公司制度中的一些诸如委托-代理结构的金融安排等深层次的问题。
为什么说公司理财研究的就是如下三个问题：(1) 公司应该投资于什么样的长期资产？涉及资产负债表的左边。
我们使用“资本预算(capital budgeting)”和“资本性支出”这些专业术语描述这些长期固定资产的投资和管理过程。
(2) 公司如何筹集资本性支出所需的资金呢？涉及资产负债表的右边。
回答这一问题又涉及到资本结构(Capital structure)，它表示公司短期及长期负债与股东权益的比例。
(3) 公司应该如何管理它在经营中的现金流量？涉及资产负债表的上方。
首先，经营中的现金流入量和现金流出量在时间上不对等。
此外，经营中现金流量的数额和时间都具有不确定性，难于确切掌握。
财务经理必须致力于管理现金流量的缺口。
从资产负债表的角度看，现金流量的短期管理与净营运资本(net working capital)有关。
净营运资本定义为短期资本与短期负债之差。
从财务管理的角度看，短期现金流量问题是由于现金流量和现金流量之间不对等所引起的，属于短期理财问题。
资本结构公司可以事先发行比股权多的债权，筹集所需的资金；可以考虑改变二者的比例，买回它的一些债权。
融资决策在原先投资决策前就可以独立设定。
这些发行债权和股权的决策影响到公司的资本结构。
资金主管负责处理现金流量、投资预算和制定财务计划。
财务主管负责会计工作职能，包括税收、成本核算、财务会计和信息系统。
现金流量的时点公司投资的价值取决于现金流量的时点。
一个最重要的假设是任何人都偏好早一点收到现金流量。
今天收到的一美元比明天收到的一美元更有价值。
《corporate finance》罗斯版 英文版 Chapter 04书本课后习题及答案
Chapter 041.An annuity stream of cash flow payments is a set of:A. e qual cash flows occurring each time period over a fixed length of time.B. e qual cash flows occurring each time period forever.C. e ither equal or varying cash flows occurring at set intervals of time for a fixed period.D. i ncreasing cash flows occurring at set intervals of time that go on forever.E. a rbitrary cash flows occurring each time period for no more than 10 years.2.Annuities where the payments occur at the end of each time period are called _____, whereas_____ refer to annuity streams with payments occurring at the beginning of each time period.A. o rdinary annuities; early annuitiesB. l ate annuities; straight annuitiesC. s traight annuities; late annuitiesD. a nnuities due; ordinary annuitiesE. o rdinary annuities; annuities due3. A flow of unending and equal payments that occur at regular intervals of time is called a(n):A. a nnuity due.B. i ndemnity.C. p erpetuity.D. a mortized cash flow stream.E. a mortization table.4.An interest rate that is compounded monthly, but is expressed as if the rate were compoundedannually, is called the _____ rate.A. s tated interestB. c ompound interestC. e ffective annualD. p eriodic interestE. d aily interest5.The interest rate charged per period multiplied by the number of periods per year is called the_____ rate.A. e ffective annualB. a nnual percentageC. p eriodic interestD. c ompound interestE. d aily interest6.Binder and Sons borrowed $138,000 for three years from their local bank and now they arepaying monthly payments that include both principal and interest. Paying off debt by making installments payments, such as Binder and Sons is doing, is referred to as:A. f oreclosing on the debt.B. a mortizing the debt.C. f unding the debt.D. c alling the debt.E. r efunding the debt.7.Ted purchased an annuity today that will pay $1,000 a month for five years. He received his firstmonthly payment today. Allison purchased an annuity today that will pay $1,000 a month for five years. She will receive her first payment one month from today. Which one of the followingstatements is correct concerning these two annuities?A. B oth annuities are of equal value today.B. A llison’s annuity is an annuity due.C. T ed’s annuity has a higher present value than Allison’s.D. A llison’s annuity has a higher present value than Ted’s.E. T ed’s annuity is an ordinary annuity.8.You are comparing two investment options, each of which will provide $15,000 of total income.Option A pays five annual payments starting with $5,000 the first year followed by four annual payments of $2,500 each. Option B pays five annual payments of $3,000 each. Which one of the following statements is correct given these two investment options?A. B oth options are of equal value today.B. G iven a positive rate of return, Option A is worth more today than Option B.C. O ption B has a higher present value than Option A given a positive rate of return.D. O ption B has a lower present value than Option A given a zero rate of return.E. O ption A is preferable because it is an annuity due.9.You are considering two projects with the following cash flows:Assuming both projects have the same initial cost, you know that:A. t here are no conditions under which the projects can have equal values.B. P roject B has a higher net present value than Project A.C.Project A is more valuable than Project B given a positive discount rate.D.both projects offer the same rate of return.E.both projects have equal net present values at any discount rate.10.A perpetuity differs from an annuity because:A. p erpetuity payments vary with the rate of inflation.B. p erpetuity payments vary with the market rate of interest.C. p erpetuity payments are variable while annuity payments are constant.D. p erpetuity payments never cease.E. a nnuity payments occur at irregular intervals of time.11.The annual percentage rate:A. c onsiders interest on interest.B. i s the actual cost of a loan with monthly payments.C. i s higher than the effective annual rate when interest is compounded quarterly.D. i s the interest rate charged per period divided by (1 + n), when n is the number of periods peryear.E. e quals the effective annual rate when the interest on an account is designated as simpleinterest.12.You would be making a wise decision if you chose to:A. b ase decisions regarding investments on effective rates and base decisions regarding loanson annual percentage rates.B. a ssume all loans and investments are based on simple interest.C. a ccept the loan with the lower effective annual rate rather than the loan with the lower annualpercentage rate.D. i nvest in an account paying 6 percent, compounded quarterly, rather than an account paying 6percent, compounded monthly.E. i gnore the effective rates and concentrate on the annual percentage rates for all transactions.13.The highest effective annual rate that can be derived from an annual percentage rate of 9% iscomputed as:A. [1 + (.09 / 365)] × 365.B. e.09×q.C. e × (1 + .09).D. e.09−1.E. [1 + (.09 / 365)]365−1.14.Given a stated interest rate, which form of compounding will yield the highest effective rate ofinterest?A. a nnual compoundingB. m onthly compoundingC. d aily compoundingD. c ontinuous compoundingE. s emiannual compounding15.The net present value of a project is equal to the:A. p resent value of the future cash flows.B. p resent value of the future cash flows minus the initial cost.C. f uture value of the future cash flows minus the initial cost.D. f uture value of the future cash flows minus the present value of the initial cost.E. s um of the project’s anticipated cash flows.16.What is the present value of $6,811 to be received in one year if the discount rate is 6.5 percent?A.$6,395.31B.$6,023.58C.$6,643.29D.$6,671.13E.$7,253.7217.You plan to invest $6,500 for three years at 4 percent simple interest. What will your investmentbe worth at the end of the three years? A. $6,941.11A. A NSB. $7,280.00B. $7,311.62C. $7,250.00D. $6,760.0018.Shawn has $2,500 invested at a guaranteed rate of 4.35 percent, compounded annually. Whatwill his investment be worth after five years?A. $2,997.04B. $3,288.00C. $3,321.32D. $3,093.16E. $2,857.5919.Your parents plan to give you $200 a month for four years while you are in college. At a discountrate of 6 percent, compounded monthly, what are these payments worth to you when you first start college?A. $8,797.40B. $8,409.56C. $8,198.79D. $8,516.06E. $8,279.3220.You just won the lottery! As your prize you will receive $1,500 a month for 150 months. If you canearn 7 percent, compounded monthly, on your money, what is this prize worth to you today?A. $137,003.69B. $149,676.91C. $137,962.77D. $148,104.26E. $150,723.7621.Olivia is willing to pay $185 a month for four years for a car payment. If the interest rate is 4.9percent, compounded monthly, and she has a cash down payment of $2,500, what price car can she afford to purchase?A. $10,961.36B. $10,549.07C. $8,533.84D. $8,686.82E. $8,342.0522.You are the beneficiary of a life insurance policy. The insurance company offers two options forreceiving the proceeds: a lump sum of $50,000 today or payments of $550 a month for ten years.If you can earn 6 percent, compounded monthly, which option should you take and why?A. Y ou should accept the lump sum because the payments are only worth $49,540.40 today.B. Y ou should accept the payments because they are worth $51,523.74 today.C. Y ou should accept the payments because they are worth $53,737.08 today.D. Y ou should accept the $50,000 because the payments are only worth $49,757.69 today.E. Y ou should accept the $50,000 because the payments are only worth $48,808.17 today.23.Your employer contributes $50 a week to your retirement plan. Assume you work for youremployer for another twenty years and the applicable discount rate is 5 percent, compounded weekly. Given these assumptions, what is this employee benefit worth to you today?A. $29,144.43B. $35,920.55C. $32,861.08D. $26,446.34E. $36,519.0224.Wilt has a consulting contract with a firm that states that he will receive annual payments of$50,000 a year for five years with the first payment due today. What is the current value of this contract if the discount rate is 8.4 percent?A. $214,142.50B. $201,867.47C. $195,618.19D. $197,548.43E. $224,267.1025.Uptown Industries just decided to save $3,000 a quarter for the next three years. The money willearn 2.75 percent, compounded quarterly, and the first deposit will be made today. If thecompany had wanted to deposit one lump sum today, rather than make quarterly deposits, how much would it have had to deposit today to have the same amount saved at the end of the three years?A. $34,441.56B. $34,678.35C. $33,428.87D. $33,687.23E. $34,998.0126.You need some money today and the only friend you have that has any is your ‘miserly' friend.He agrees to loan you the money you need, if you make payments of $20 a month for the next six months. In keeping with his reputation, he requires that the first payment be paid today. He also charges you 1.5% interest per month. How much total interest does he expect to earn?A. $3.94B. $4.35C. $1.34D. $3.63E. $5.9627.Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuitypayment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent?A. $54,282.98B. $52,970.07C. $56,677.98D. $56,191.91E. $66,916.2128.Denise will receive annual payments of $10,000 for the next 25 years. The discount rate is 6.8percent. What is the difference in the present value of these payments if they are paid at the beginning of each year rather than at the end of each year?A. $8,069B. $9,217C. $9,706D. $8,382E. $8,85029.You are comparing two annuities with equal present values. The applicable discount rate is 6.5percent. One annuity will pay $2,000 annually, starting today, for 20 years. The second annuity will pay annually, starting one year from today, for 20 years. What is the annual payment for the second annuity?A. $2,225B. $2,075C. $2,000D. $2,130E. $2,40530.Kay owns two annuities that will each pay $500 a month for the next 12 years. One payment isreceived at the beginning of each month while the other is received at the end of each month. Ata discount rate of 7.25 percent, compounded monthly, what is the difference in the present valuesof these annuities?A. $289.98B. $265.42C. $299.01D. $308.00E. $312.5031.What is the future value of $845 a year for seven years at an interest rate of 11.3 percent?A. $6,683.95B. $6,075.69C. $8,343.51D. $8,001.38E. $8,801.9132.What is the future value of $3,100 a year for six years at interest rate of 8.9 percent?A. $20,255.40B. $26,847.26C. $27,134.16D. $23,263.57E. $24,414.6733.Janet saves $3,000 a year at an interest rate of 4.2 percent. What will her savings be worth at theend of 35 years?A. $229,317.82B. $230,702.57C. $230,040.06D. $234,868.92E. $236,063.6634.You plan to save $2,400 a year and earn an average rate of interest of 5.6 percent. How muchmore will your savings be worth at the end of 40 years if you save at the beginning of each year rather than at the end of each year?A. $17,822.73B. $18,821.10C. $18,911.21D. $19,103.04E. $18,115.3135.You borrow $12,600 to buy a car. The terms of the loan call for monthly payments for five yearsat an interest rate of 4.65 percent, compounded monthly. What is the amount of each payment?A. $253.22B. $243.73C. $230.62D. $235.76E. $233.0436.You borrow $199,000 to buy a house. The mortgage rate is 5.5 percent, compounded monthly.The loan period is 30 years, and payments are made monthly. If you pay for the house according to the loan agreement, how much total interest will you pay?A. $218,086B. $198,161C. $207,764D. $211,086E. $185,05937.Luis has a management contract which grants him a lump sum payment of $20 million be paidupon the completion of his first five years of service. The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. The company can earn 4.5 percent on these funds. How much must the company set aside each year for this purpose?A. $3,775,042.93B. $3,798,346.17C. $3,801,033.67D. $3,655,832.79E. $4,038,018.2238.On the day you retire, you have $389,900 in your retirement savings. You expect to earn 4.5percent, compounded monthly, and live 24 more years. How much can you withdraw from your savings each month during your retirement if you plan to die on the day you spend your last penny?A. $2,181.96B. $2,092.05C. $2,398.17D. $2, 072.00E. $2,216.2939.Donaldson’s purchased some property for $1.2 million, paid 25 percent down in cash, andfinanced the balance for 12 years at 7.2 percent, compounded monthly. What is the amount of each monthly mortgage payment?A. $8,440.01B. $8,978.26C. $9,351.66D. $9,399.18E. $9,513.6740.Assume you graduate with $31,300 in student loans at an interest rate of 5.25 percent,compounded monthly. If you want to have this debt paid in full within three years, how much must you pay each month?A. $871.30B. $873.65C. $876.79D. $941.61E. $980.4041.You are buying a car for $7,500, paying $900 down in cash, and financing the balance for 24months at 6.5 percent, compounded monthly. What is the amount of each monthly loanpayment?A. $318.64B. $294.01C. $302.02D. $264.78E. $245.0942.You want to purchase an annuity that will pay you $1,200 a quarter for 15 years and earn a returnof 5.5 percent, compounded quarterly. What is the most you should pay to purchase thisannuity?A. $52,988.16B. $48,811.20C. $47,455.33D. $48,450.67E. $52,806.3043.A car dealer is willing to lease you a car for $319 a month for 60 months. Payments are due onthe first day of each month starting with the day you sign the lease contract. If your cost of money is 4.9 percent, compounded monthly, what is the current value of the lease?A. $17,882.75B. $17,906.14C. $17,014.34D. $16,235.42E. $16,689.5444.Sara is the recipient of a trust that will pay her $500 on the first day of each month, startingimmediately and continuing for 40 years. What is the value of this inheritance today if theapplicable discount rate is 7.3 percent, compounded monthly?A. $76,811.30B. $67,557.52C. $89,204.04D. $78,192.28E. $80,006.0945.Beatrice invests $1,000 in an account that pays 5 percent simple interest. How much more couldshe have earned over a 10-year period if the interest had compounded annually?A. $132.45B. $135.97C. $128.89D. $117.09E. $121.6746.Nu-Tools plans to set aside an equal amount of money each year, starting today, so that it willhave $25,000 saved at the end of three years. If the firm can earn 4.7 percent, how much does it have to save annually?A. $7,596.61B. $7,689.16C. $8,004.67D. $8,414.14E. $8,333.3347.Starting today, Alicia is going to contribute $100 a month to her retirement account. Her employermatches her contribution by 50 percent. If these contributions remain constant, and she earns a monthly rate of .55 percent, how much will her savings be worth 40 years from now?A. $399,459.44B. $300,456.74C. $349,981.21D. $299,189.16E. $354,087.8848.An annuity costs $70,000 today, pays $3,500 a year, and earns a return of 4.5 percent. What isthe length of the annuity time period?A.54.96 yearsB.49.48 yearsC.52.31 yearsD.43.08 yearsE.48.00 years49.You are borrowing $5,200 at 7.8 percent, compounded monthly. The monthly loan payment is$141.88. How many loan payments must you make before the loan is paid in full?A. 30B. 36C. 40D. 42E. 4850.You are retired, have $264,500 in your savings, withdraw $2,000 each month, and earn 4.5percent, compounded monthly. How long will it be until you run out of money?A. 13.67 yearsB. 15.25 yearsC. 22.08 yearsD. 13.02 yearsE. 18.78 years51.A project is expected to produce cash flows of $48,000, $39,000, and $15,000 over the next threeyears, respectively. After three years, the project will be worthless. What is the present value of this project if the applicable discount rate is 15.25 percent?A. $89,201.76B. $80,809.09C. $73,457.96D. $97,808.17E. $93,132.4852.You are considering two savings options that each provide a rate of return of 4.65 percent. Thefirst option requires annual savings of $2,000, $2,500, and $3,000 over the next three years, respectively, with the first deposit due one year from today. The other option is to save one lump sum amount today. If you want to have the same balance in your savings at the end of the three years, regardless of the savings method you select, how much do you need to save today if you select the lump sum option?A. $6,811.50B. $6,791.42C. $7,128.23D. $6,607.23E. $7,500.0053.You are considering two insurance settlement offers. The first offer includes annual payments of$36,000, $42,000, and $50,000 over the next three years, respectively, with the first payment being made one year from today. The other offer is the payment of one lump sum amount today.The relevant discount rate is 7 percent. What is the minimum amount you should accept today if you are to select the lump sum offer?A. $119,877.67B. $111,144.18C. $105,000.10D. $118,924.27E. $114,556.8854.You are considering a 3-year job offer. The job offers an annual salary of $48,000, $51,000, and$55,000 a year for the next three years, respectively. The offer also includes a starting bonus of $2,500 payable immediately. What is this offer worth to you today at a discount rate of 6.5percent?A. $129,640.14B. $134,383.56C. $132,283.56D. $138,066.75E. $130,983.5655.You are considering a project with projected annual cash inflows of $32,200, $41,800, $22,900for the next three years, respectively. What is the value of the project today at a discount rate of14 percent?A. $86,487.47B. $75,866.20C. $77,103.18D. $81,292.25E. $66,549.3056.You expect an investment to return $11,300, $14,600, $21,900, and $38,400 annually over thenext four years, respectively. What is this investment worth to you today if you desire a rate of return of 16.5 percent?A. $64,253.91B. $58,700.89C. $63,732.41D. $55,153.57E. $59,928.1657.A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 inthe second year. The project has a present value of $303,764.34 at a discount rate of 12.75 percent. What is the expected cash flow in the third year of the project?A. $163,100B. $163,800C. $164,900D. $164,400E. $163,70058.Two years ago, the Fun Center deposited $3,200 in an investment account for the purpose ofbuying new equipment three years from today. Today, it is adding another $5,000 to this account.It plans on making a final deposit of $3,500 to the account next year. How much will be available when it is ready to buy the equipment, assuming the account earns a rate of return of 6.85percent?A. $13,619.29B. $13,430.84C. $12,746.17D. $14,194.54E. $14,552.2159.Anna has $38,654 in a savings account that pays 2.3 percent interest. Assume she withdraws$10,000 today and another $10,000 one year from today. If she waits and withdraws theremaining entire balance four years from today, what will be the amount of that withdrawal?A. $20,916.78B. $20,109.08C. $20,676.53D. $19,341.02E. $19,608.0760.Theo is depositing $1,300 today in an account with an expected rate of return of 8.1 percent. If hedeposits an additional $3,200 two years from today, and $4,000 three years from today, what will his account balance be ten years from today?A. $14,044.89B. $16,412.31C. $15,182.53D. $15,699.54E. $17,741.7161.Leo received $7,500 today and will receive another $5,000 two years from today. He will investthese funds when he receives them and expects to earn a rate of return of 11.5 percent. What value does he expect his investments to have five years from today?A. $18,758.04B. $18,806.39C. $19,856.13D. $20,314.00E. $19,904.3662.Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years fromtoday. She will immediately invest these funds for retirement. If she earns 9.6 percent on her investments, how much will she have in savings 30 years from today?A. $586,124.93B. $591,414.14C. $646,072.91D. $620,008.77E. $641,547.3963.BJ’s goal is to have $50,000 saved at the end of Year 5. At the end of Year 2, they can add$7,500 to their savings but they want to deposit the remainder they need to reach their goal today, Year 0, as a lump sum deposit. If they can earn 4.5 percent, how much must they deposit today? A. $31,867.74A. A NSB. $33,254.58B. $33,108.09C. $34,276.34D. $34,642.2864.The government imposed a fine on the Not-So-Legal Company. The fine calls for a payment of $100,000 today, $150,000 one year from today, and $200,000 two years from today. Thegovernment will hold the funds until the final payment is collected and then donate the entire amount to charity. The government has agreed to pay annual interest of 3 percent on the held funds. How much will be donated to charity in two years?A. $475,000.00B.$460,590.00C. $447,174.76D. $451,050.05E.$474,407.7065.Benson’s established a trust fund that provides $125,000 in college scholarships each year. Thetrust fund earns a rate of return of 6.15 percent and distributes only its annual income. How much money did Benson’s contribute to establish the trust fund?A.$2,291,613.13B.$2,032,520.33C.$2,150,000.00D.$2,018,970.44E.$1,987,408.1566.A preferred stock pays an annual dividend of $6.50 a share and has an annual rate of return of7.35 percent. What is the stock price?A. $74.50B. $71.78C. $92.09D.$88.44E.$77.7867.You want to establish a trust fund that will provide $50,000 a year forever for your heirs. If thefund can earn a guaranteed rate of return of 4.5 percent, how much must you deposit in a lump sum to establish this trust? This will be the only deposit you make to the fund.A.$1,333,333.33B.$2,250,000.00C.$1,250,000.00D.$1,666,666.67E.$1,111,111.1168.You just paid $525,000 for a security that will pay you and your heirs $25,000 a year forever.What rate of return will you earn?A. 4.95%B. 4.39%C. 4.76%D. 5.00%E. 4.50%69.Anna’s grandmother established a trust and deposited $250,000 into it. The trust pays aguaranteed 4.25 percent rate of return. Anna will receive all of the interest earnings on an annual basis and a charity will receive the principal amount at Anna’s passing. How much incom e will Anna receive each year?A. $10,000B. $8,500C. $12,400D.$10,625E.$12,75070.The preferred stock of ABC Co. offers a rate of return of 7.87 percent. The stock is currentlypriced at $63.53 per share. What is the amount of the annual dividend?A. $5.20B. $5.00C. $4.60D. $5.50E. $6.0071.Your credit card company charges you 1.35 percent per month. What is the annual percentagerate on your account?A. 16.45%B. 16.30%C. 16.39%D. 16.20%E. 16.56%72.What is the annual percentage rate on a loan that charges interest of 1.65 percent per quarter?A. 6.50%B. 6.45%C. 6.54%D. 6.60%E. 6.72%73.A credit card compounds interest monthly and has an effective annual rate of 12.67 percent.What is the annual percentage rate?A. 12.35%B. 12.00%C. 11.99%D. 11.87%E. 11.93%74.What is the effective annual rate if your credit card charges you 10.64 percent compoundeddaily? (Assume a 365-day year.)A. 10.79%B. 11.22%C. 11.95%D. 11.48%E. 12.01%75.Taylor’s Hardware offers credit at an APR of 14.9 percent and compounds interest monthly. Whatis the actual rate of interest they are charging?A. 13.97%B. 14.90%C. 15.48%D. 15.96%E. 16.10%76.The pawn shop adds 2 percent to loan balances for every two weeks a loan is outstanding. Whatis the effective annual rate they are charging?A. 79.97%B. 73.08%C. 51.21%D. 67.34%E. 83.43%77.You have $2,500 to deposit into a savings account. The five banks in your area offer the followingrates. In which bank should you deposit your savings?A. B ank A: 3.75%, compounded annuallyB. B ank B: 3.69%, compounded monthlyC. B ank C: 3.70% compounded semi-annuallyD. B ank D: 3.67% compounded continuouslyE. B ank E; 3.65% compounded quarterly78.What is the effective annual rate of 13.52 percent compounded continuously?A. 14.23%B. 13.84%C. 13.97%D. 14.48%E. 14.56%79.What is the effective annual rate of 10.25% compounded continuously?A. 10.98%B. 11.11%C. 10.79%D. 11.04%E. 10.86%80.The Smart Bank wants to be competitive based on quoted loan rates and thus must offer loans atan annual percentage rate of 7.9 percent. What is the maximum rate the bank can actually earn based on this quoted rate?A. 7.90%B. 8.18%C. 8.20%D. 8.22%E. 8.39%81.Thirty-five years ago, your father invested $2,000. Today that investment is worth $98,407. Whatrate of return has your father earned on his investment?A. 10.94%B. 11.33%C. 10.50%D. 11.77%E. 9.99%82.What is the future value of investing $5,650 for 14 years at a continuously compounded rate of8.6 percent?A. $17,933.54B. $16,685.44C. $19,369.83D. $18,833.85E. $13,183.8583.Assume you could invest $25,000 at a continuously compounded rate of 10 percent. What wouldyour investment be worth at the end of 50 years?A. $2,933,054B. $3,500,824C. $3,911,215D. $3,710,329E. $3,648,02984.A trust has been established to fund scholarships in perpetuity. The next annual distribution willbe $1,200 and future payments will increase by 3 percent per year. What is the value of this trust at a discount rate of 7.4 percent?A. $17,189.19B. $19,960.00C. $27,272.73D. $24,609.11E. $30,388.1885.Stu can purchase a one-bedroom house near his college today for $110,000, including the cost ofsome minor repairs. He expects to be able to resell it in four years for $150,000 if he just puts a little effort into cleaning up the property. At a discount rate of 6.5 percent, what is the expected net present value of this purchase opportunity?A. $3,001.61B. $2,487.43C. $6,598.46D. $7,208.18E. $4,311.02。
FINS5514 corporate finance 考点知识总结
1. Agency TheoryJensen & Meckling (1976) state that the firm is a nexus of contracts• All stakeholders of the firm are concerned only with self-interest• This creates conflicts of interest between:– Shareholders and managers– Shareholders and debtholders• Managers prefer to:• Increase their job security• Increase their own power and status• Consume excessive perquisites• They may do this at the expense of SWM• Sharehol ders know this, and therefore attempt to protect against it by:• Linking managerial salaries to firm performance• Limit the free cash flows under managerial discretion•Monitor managers through, for example, audits or tighter shareholder concentration• All of the activities of shareholders to decrease agency conflicts occur at a cost, called, agency costs.• Changes in policy• Opportunity costs if managers unable to invest in positive NPV projects• Monitoring costs2. Investment Criteria• Net Present Value• The Payback Rule• The Discounted Payback• The Average Accounting Return• The Internal Rate of Return• The Profitability Index• The Practice of Capital BudgetingWe need to ask the following questions:• Does the decision rule ad just for the time value of money?• Does the decision rule adjust for risk?• Does the decision rule provide information on whether we are creating value for the firm?3. What-if Analysis• Scenario Analysis: determination of what happens to NPV when we ask what-if analysis. Best, base, worst case.• Sensitivity Analysis: investigation of what happens to NPV when only one variable is changed.• Simulation Analysis: a combination of scenario and sensitivity analysis.4. DGM, CAPM and WACC5. Types of Underwriting• Firm Commitment Underwriting▪Issuer sells entire issue to underwriting syndicate▪The syndicate then resells the issue to the public▪The underwriter makes money on the spread between the price paid to the issuer and the price received from investors when the stock is sold▪The syndicate bears the risk of not being able to sell the entire issue for more than the cost▪Most common type of underwriting in the United States• Best Efforts Underwriting▪Underwriter must make their “best effort” to sell the securities at an agreed-upon offering price ▪The company bears the risk of the issue not being sold▪The offer may be pulled if there is not enough interest at the offer price and the company does not get the capital and they have still incurred substantial flotation costs▪Not as common as it used to be• Dutch Auction Underwriting▪Underwriter accepts a series of bids that include number of shares and price per share▪The price that everyone pays is the highest price that will result in all shares being sold▪There is an incentive to bid high to make sure you get in on the auction but knowing that you willprobably pay a lower price than you bid▪The Treasury has used Dutch auctions for years▪Google was the first large Dutch auction IPO6. M&M Theory, Pecking-Order Theory, Static Trade-off theoryPecking-Order Theory:• Many, if not most, large profitable firms such as Google and Microsoft use very little, if any, debtThe higher the market valuation, generally the less the debt• Raising capital is expensiveSuccessful firms do not have to resort to external sources of finance-use internally generated cash • If stock is overvalued, management will prefer to issue new equity• Anticipating this, prospective new shareholders will downgrade the stock and price will fall• Pecking order: retained earnings first; external debt second; external equity, last resort• Implications:No target capital structureProfitable companies use less debtCompanies try to create financial slackStatic Trade-off theory:It is the theory that a firm borrows up to the point where the tax benefit from an extra dollar in debt is exactly equal to the cost that comes from the increased probability of financial distress. We call this the static theory because it assumes that the firm is fixed in terms of its assets and operations and it considers only possible changes in the debt-equity ratio.7. The saying is “a bird in the hand is worth two in the bush”, that is, a cash dividend in the hand is worth more than the promise of higher dividends in the future if the firm uses excessive retained cash to make negative NPV investments (i.e., essentially to “steal” shareholder income). U nder M&M this is assumed not to happen, but it does in reality. If the retained cash yields the firm’s cost of capital then the “two in the bush” pays-off and M&M goes through.8. The “clientele effect” refers to the tendency under the “classical” tax system in use in the US for investors subject to high personal tax on dividends to prefer to hold companies that retain the majority of their income and generate more lightly taxed realized capital gains when the stock is sold. Investors in a moretax-advantageous position would prefer to hold more relatively high dividend paying stock. If an individual company switches its dividend policy from high to low, it may reallocate itself from one clientele to another but not have a significant effect on the overall supply of dividends to that clientele. In which case, its change in policy will have no effect on its valuation.9. “Dividend signaling” refers to the idea that it will be costly to management (and sh areholders) if a company announces a high payout (dividend) policy and then in future has to reverse this policy because the firm cannot generate enough cash. If this is true, the firm may be able to credibly signal improved earnings prospects by raising its dividend. Dividend signaling may not be very credible because if the firm discovers it has far more positive NPV projects than expected, it may need to limit its dividends in order to finance its now better prospects.10. Dividend policy: residual dividend approach, dividend stability, compromise dividend policy11. DIVIDEND IMPUTATION和classic tax system1.AGENCY COST，产生的原因和怎么解决2.NPV,IRR,PAYBACK PERIOD, AAP,PI好处不好处3.DGM, CAPM, WACC的好处不好处4.MM定律，结合后面的PECKING ORDER，static trade-off theory, bird-in-hand theory, singnaling theory5. Three types of what-if analyses6.procedure of selling securities to public7. types of underwriting8.DIVIDEND IMPUTATION和普通分红的区别9. Dividend policy: residual dividend approach, dividend stability, compromise dividend policy10.clientele effect, green shoe, lockupCalculation1.levered cost of capital (EPS, value of the firm, cost of capital, unlevered cost of capital)2. NPV(choose one; replacement problem)3.merger4. annuity5.WACC (floatation costs)。
CFA知识点-CorporateFinance公司金融
CFA知识点-Corporate Finance 公司金融Corporate Finance, 中文通常译作公司金融，或者公司理财。
在CFA一级考试中，它占比8%，难度系数在整个一级的学习科目中，为中等偏下，以理解为主。
虽然只有一个session,但包含6个主题，这构成了一个公司理财核心的三件事：钱从哪里来？钱怎么花？钱怎么分？这门课程告诉学员，一个公司，尤其是公司的高管是如何针对公司财务报表，使公司规划出最合适的资本结构，来获得资本的最优收益；在制定资本预算时，如何做出正确的现金流量估计和风险分析，从而作出正确的决定；如何在决定股利政策时，充分了解其中的资讯和意义；以及如何实现公司融资结构与投资结构的最优化并做出未来决策。
所以，这门课具有较强的实用性。
一、 Capital Budgeting 资本预算在众多的投资项目中，企业应当如何去做决策，这需要科学的方法论，由此衍生了资本预算理论的发展。
我们首先要了解的是资本预算的一般过程和资本预算的五大基本原则，以及在对一个项目进行评估的时候，几种主流评估方法：1）NPV (Net Present Value) 净现值法2）IRR (Internal Rate ofReturn) 内部收益率法3）Payback Period 投资回收期法4）Discounted Payback Period 贴现回收期法5）Average Accounting Rate ofReturn 平均会计收益率法6）Profitability Index 盈利性指数。
这其中，NPV和IRR深受大企业和学术研究的欢迎，也是考试的核心。
然而它们也有其各自优势与不足。
就NPV和IRR 的比较来说，（1）理论上看，净现值是最正确的方法，它考虑了所有的现金流情况，多个项目进行投资选择时，应该选择净现值最大的项目；（2）内部收益率法的最大优点就是以百分比的形式计算收益率，容易让人理解，但是存在多重解问题(即一个项目有可能出现两个IRR) 。
Finance(国际金融)关键术语名词解释
Chapter 1《American EconomicReview》《美国经济评论》《Journal of Finance》《金融学报》《The Wealth of Nations》《国富论》acquisition 收购adjust risk 调整风险aggressive target 激进（性）的目标asset 资产asset allocation 资产配置bidder 出价者，竞标者Black-Scholes optionspricing formulaB-S期权定价公式business finance 企业财务（金融）capital budgeting 资本预算capital expenditure 资本支出capital structure 资本结构cash flow 现金流chief executive officer（CEO）首席执行官chief financial officer（CFO）首席财务官（财务总监）claims 权益（证）、索取权利classical economics 古典经济学common stock 普通股competitive stock market 竞争性的股票市场conflict of interest 利益冲突consumption and savingdecisions消费和储蓄决策consumption preference 消费偏好controller 审计员convertible securities 可转换证券corporation （有限责任）公司corporation finance 公司财务（金融）debt outstanding 未清偿贷款（债务）derivative securities 衍生证券diversify risk 分散风险dividend and financialpolicies红利（股利）和财务政策economic value 经济价值entertainment industry 娱乐行业（产业）entity 实体equity权益（与Liability（负债对应）evaluation of cost 成本估算（评价）exclusive goal 唯一目标executive compensationprogram管理者补偿（薪酬）计划extended family 大家庭finance 金融, 财政, 金融学finance system 金融系统financial advisory firm 金融咨询公司financial capital 金融资本financial contracting 订立金融合约（合同）Financial Executive Institute 财务执行官组织financing 筹措资金（融资）financing decision 融资决策general partner 一般合伙人going concern 关注效应infrastructure 基础设施、架构initial outlay 初始投入integrated financial program 完整的财务计划investment decision 投资决策ITT corporation 国际电报电话公司learning curve 学习曲线liability 负债、债务、责任limited liability 有限责任limited partner 有限责任合伙人long-lived asset 长期资产long-range incentivesystem长期激励系统market discipline 市场规则market interest rate 市场利率market risk premium 市场风险价格market value of shares 股票市场价值（简称市值）marketing 营销maximize the wealth （使）财富最大化merger 兼并，合并mortgage loan 抵押贷款multinational conglomerate 跨国企业集团mutual fund 共同基金net worth 净资产operating margin 营业利润option 期权original core business 原始的核心业务partnership 合伙企业pension liabilities 养老金负债personal investing 个人投资physical capital 实物资本pool联营；集中使用的（资金，物）portfolio 投资组合portfolio of asset 资产组合preferred stock 优先股president 总裁primary commitment 首要（基本）任务private corporation 私人（非公众）公司professional managers 职业经理人profit 利润profit-maximizationcriterion利润最大化标准proposition 命题public corporation 公众公司quantitative model 定量模型regulatory body 监管机构resource allocationdecision资源配置决策retail outlet 零售摊点return 回报，收益risk-averse 风险厌恶（规避）security price 证券价格share price appreciation 股价上涨（增值）shareholder-wealth-maximization股东财富最大化sole proprietorship 个体（业主制）企业spin-off 配股spread out over time 跨时间分布stake 资助，资金stock option 股票期权strategic planning 战略规划supplier 供货商takeover 接管the exchange of assetsand risks资产和风险的交换the set of markets andother institutions市场及其它机构的集合trade off 权衡uncertain benefit 不确定性收益unlimited （limited）liability无（有）限责任vice-president forfinancial财务副总裁voting right （股东）投票权welfare 福利well-functioning capitalmarket高效的资本市场working capitalmanagement营运资本管理Chapter 2accounting procedure 会计程序adverse selection 逆向选择American Express 美国运通信用卡arithmetic mean 算术平均数asymmetry 不对称average risk premium 平均风险升水（溢价）Bank for InternationalSettlement（BIS）国际清算银行banking panic 银行危机bartern. 易货贸易；v. 讨价还价board of directors 董事会by-product 副产品call option 买入期权（看涨期权）capital gain（loss）资本收益（损失）Capital market资本市场（即长期资金市场）cash dividend 现金股利（红利）central bank 中央银行charge price 要价clearing and settlingpayment清算和结算支付closed-end 封闭式的collateral 担保品collateralization 以…担保commercial loan 商业贷款commercial loan rate 商业贷款利率credit card 信用卡default 违约、托债、弃权default risk 违约风险deficit unit 赤字部门defined-benefit pensionplan规定收益型养恤金制defined-contributionpension plan规定缴费型养恤金制depository savingsinstitution存款储蓄机构（系统）derivative 衍生（证券）Deutsche Bank 德意志银行dissemination 推广、传播dividend reinvestment 红利（股利）再投资dollar-denominated asset 以美元计价的资产double-entry-bookkeeping 复式记账法equity 权益equity-kickers 权益条件expected rates of return 期望（预期）收益率Federal Reserve System 联邦储备系统Finance AccountingStandardsBoard财务会计标准委员会financial instrument 金融工具financial intermediary 金融中介financial market parameters 金融市场参数financial variable 金融（财务）变量fixed-income-instruments 固定收益证券flow of fund 资金流flow of fund 资金流foreign exchange 外汇formation extraction 信息提取forward contract 远期合约functional perspective （从）功能（的角度或观点）future 期货German marks 德国马克go public 上市incentive problem 激励问题index fund 指数（化）基金index-linked bonds（与物价）指数联系的债券information service 信息咨讯（服务）insurance company 保险公司interest rate 利息率（简称利率）interest rate arbitrage 利率套利interest rate equalization 利率平价intermediary 中介International BankforReconstruction andDevelopment国际复兴开发银行International Monetary Fund（IMF）国际货币基金组织International Swap DealersAssociation国际掉期交易商协会intertemporal 跨期的（多阶段的）IOUI owe you的简称，喻指“借条”issuing stock 发行股票Japanese yen 日元life annuity 人寿年金limited liability 有限责任liquidity 流动性maturity （票据）到期日；期限money market货币市场（即短期资金市场）moral-hazard 道德风险mortgage 抵押mortgage rate 抵押利率mutual fund 共同基金New York Stock Exchange 纽约股票交易所nominal interest rate 名义利率offset 弥补、抵消open-end 开放式的option 期权Osaka Options and FuturesExchange大阪期货期权交易所over-the-counter-market（OTC）场外（交易）市场parties to contract 合约的参与者pool or aggregate 联营；集中使用的（资金或物品）；premium 升水、溢价price appreciation 增值principal-agent problem 委托－代理问题pro rata 按比例的put option 卖出期权（看跌期权）qusai- 准、半rate of exchange 汇率rates of return 收益（回报）率rating agency 评级机构real interest rate 实际利率real rate of return 实际收益率redeem 赎回、偿还residual claim 剩余索取（求偿）权risk aversion 风险厌恶（规避）risk premium 风险升水（溢价）security dealer 证券交易商shed specific risk 规避（分散）特定（或私有）风险standard deviation 标准差standardized option contract （经）标准化的期权合约surplus unit 盈余部门trade-off 权衡trust company 信托公司U.S Treasury Bills 美国国库券underwrite 认购、包销unit of account 计值单位universal bank全能银行（指兼做中央银行和商业银行业务的银行）volatility 波动性well-information 信息充分的yen rate of return（以）日元（记值）的收益率yield curve 收益（率）曲线yield spread 收益价差Chapter 3accounting earnings 会计收入accounting rule 会计规则accrual 应计的accrual accounting 应计制（权责发生制）accumulated depreciation 累计折旧amortize 摊销、分期偿还apocryphal 伪经的、假冒的asset turnover（ATO）资产周转率（销售收入/总资产）audit 查账、审计balance sheet 资产负债表benchmark （比较）基准bond-rating 债券评级book value 账面价值capital structure 资本结构capital-incentive utility 资本密集型的公用事业（公司）cash and equivalents 现金及其等价物cash budget 现金预算cash cycle time 现金循环周期cash inflow 现金流入cash outflow 现金流出common stock outstanding 流通在外的普通股contingent liability 或有负债（如：可能发生的诉讼赔偿等）current asset 流动资产current liability 流动负债current ratio 流动比率depreciation 折旧、贬值disclose 披露dividend payout rate 股利支付率earnings before interest and tax （EBIT）息税前利润（=毛利- GS&A）earnings per share 每股盈余（收益）earnings retention rate （收益）留存比率expiration date 到期日external financing 外部融资（比如，发行股票和债券）financial distress 财务危机（困境）financial leverage 财务杠杆（率）financial ratio 财务比率financial statement 财务报表general, selling, andadministrative expenses（GS&A）管理及销售费用goodwill 商誉gross margin 毛利（润）（=销售收入-产品销售成本）income statement 损益表income tax 所得税intangible asset 无形资产inventory 库存、存货inventory turnover 存货周转率liquidity 流动性long-term debt 长期负债market to book 市值价值/账面价值marking to market 盯住市场net income（or net profit）净利润（即税后利润=EBIT-利息-所得税）net working capital 净营运资本（=流动资产-流动负债）net worth 净资产（即权益，=资产-负债）off-balance-sheet 表外项目operation income 营运收益（营业利润）opportunity cost 机会成本owner’s equity所有者权益paid-in capital 实收资本payable 应付账款percent-of-sales method 销售（收入）百分比法planning horizon 计划（时间）跨度price to earnings 市盈率（价格/盈余）profitability 盈利能力、盈利性property 土地、地产、所有权quick ratio 速动比率receivable 应收账款receivables turnover 应收账款周转率retained earnings 留存收益ROA（return on asset）资产收益率（EBIT/资产）ROE（return on equity）净资产收益率（即权益报酬率，=税后利润/净资产）ROS（return on sales）销售利润率（EBIT/销售收入）short-term debt 短期负债specify performance target 设定业绩目标statements of cash flow 现金流量表sustainable growth rate 持续增长率taxable income 应税收益（即税前利润=EBIT-利息）times interest earned 利息保障倍数Tobin’s Q托宾Q值（=资产市值/重置成本）total shareholder returns 总的股东收益（率）Chapter 4after-tax interest rate 税后利率amortization 分期偿还、摊销annual percentage rate（APR）年度百分比（利率）annuity 年金before-tax interest rate 税前利率compound interest 复利compounding 复和（与discounting 相反的概念）discount rate 折现率、贴现率discounted cash flow（DCF）折现现金流discounting 折现、折扣effective annual rate（EFF）有效年利率exchange rate 汇率future value 终值future value factor 终值系数（即由现值计算终值的换算因子）growth annuity 增长年金immediate annuity 即付年金implied interest rate 隐含利率installment 分期付款internal rate of return（IRR）内部报酬率market capitalizationrate市场资本化利率（简称市场利率）net present value（NPV）净现值opportunity cost ofcapital资本的机会成本ordinary annuity 普通年金（即后付年金）original principal （初始）本金outstanding balance 未平头寸payback period 回收期perpetual annuity（orperpetuity）永续年金present value 现值present value factor （终值）现值系数（终值系数的倒数）reinvest 再投资simple interest 单利tax-exempt 免税的time value of money （TVM）货币（或资金）的时间价值yield to maturity 到期收益率Chapter 5bequest 遗赠、遗赠物break-even 得失相当的，盈亏平衡的deductible 可扣除（或抵扣）的explicit cost 显性成本feasible plan 可行（的）计划human capital 人力资本implicit cost 隐性成本incremental 增量的、增值的intertemporal budgetconstraint跨期预算约束optimization model 优化模型permanent income 永久性收入provision 条文、条款tax deferred 税收（可）延缓的tax exempt 免税的trial-and-error 试错Chapter 6after-tax cash flow 税后现金流all-equity-financed firm 全权益融资公司annualized capital cost 年金化资本成本appropriation 拨款、占用break-even point 盈亏平衡点capital budgeting 资本预算cost of capital 资本成本coupon bond 息票债券cumulative present value 累计现值full-fledged 完备的、正式的horizontal axis 横轴（或横坐标）labor-intensive 劳动密集型的liquidate 清算、清偿market-related risk 市场相关（或者承认予以补偿）的风险，即系统风险（systematic risk）prototype 模型、原型residual value 残值risk premium 风险溢价risk-adjusted discountrate（经）风险调整的折现率sensitivity analysis 敏感性分析vertical axis 纵轴（或纵坐标）zero-inflation 零通涨（率）Chapter 7Arbitrage 套利arbitrageurs 套利（交易）者beverage 饮料bona fide 真正的bond 债券default risk 违约风险default-free 无违约（风险）的earnings per share 每股盈余efficient marketshypothesis（EMH）有效市场假说fetch 售得…fixed-income securities 固定收益证券foreign exchangemarket外汇市场fundamental value 基础价值information set 信息集interest-rate arbitrage 利率套利intrinsic value 内在价值laundry 洗衣店Law of One Price 一价定律price/earnings multiple 市盈率（倍数）real estate 房地产、不动产sibling 兄弟、同胞、氏族成员tautologically 同意反复地transaction costs 交易成本triangular arbitrage 三角套利vending 售货well-informed 信息充分的Chapter 8abscissa 横坐标ask price 卖价、要价（报价）bid price 买价、出价（询价）callable bond 可赎回债券convertible bond 可转换债券coupon bond 带息债券、息票债券current yield 即期收益（率）discount bond 折价债券face value/ par value 面值maturity 到期日ordinate 纵坐标par bond 平价债券premium bond 溢价债券pure discount bond 纯折现债券quote 牌价redeem 赎回、偿还risk-free interest rate 无风险利率yield curve 收益（率）曲线yield to maturity 到期收益（率）zero-coupon bond 零息（票）债券Chapter 9New York StockExchange纽约股票交易所cash dividend 现金股利（或红利、分红）closing price 收盘价Constant-Growth-RateDDM不变增长率股利折现模型current/existingstockholders现有股东、老股东discounted-dividendmodel（DDM）股利折现模型dividend policy 股利政策dividend yield 分利收益率ex-dividend price 除息（即股息）价格expected rate of return 期望收益率（或报酬率）infinite 无穷（或无限）的internal equity financing 内部权益融资Investment opportunity 投资机会market capitalization rate 市场资本化利率odd lots 零星（交易量）per se 亲自、亲身perpetual 永久的price/earnings ratio 市盈率Reinvested earnings 再投资收益required rate of return 必要报酬率（或收益率）risk-adjusted discountrate（经）风险调整折现率round lots 整批（交易量）share repurchase 股票回购skeptical 怀疑的stock dividend 股票股利stock splits 股票分割Chapter 10actuary 精算师caterer 酒席承办人colossal 巨大的、异常的confidence intervals 置信区间consortium 社团、合伙continuous probability distribution 连续概率分布diversification 分散化（投资）diversifying 分散化、多样化dunce 笨蛋、书呆子ex ante 事先的ex post 事后的expected rate of return 期望收益率（报酬率）flexibility 灵活性、柔性forward contract 远期合约hedger （套期）保值者、对冲者hedging 保值、对冲、对两方下注以防止（赌博、冒险等）的损失insuring 投保、给…保险jurisdiction 司法、权力、权限layoff 解雇、失业materialize 实现mean 均值normal distribution 正态分布overview 概述perverse 故意作对的、任性的portfolio 投资组合precautionary saving 预防性储蓄probability distribution 概率分布quadruple adj. 四倍的；v. 使…（增加）四倍recrimination 反责refund 退还risk assessment 风险评估risk aversion 风险规避risk avoidance 风险避免risk exposure 风险暴露risk identification 风险识别risk management 风险管理risk retention 风险保留risk transfer 风险转移sinful 有罪的、过错的、不道德的speculator 投机者square root 平方根stakeholder 利益相关者standard deviation 标准差swap 互换volatility 波动率Chapter 11American-type option 美式期权call option 买入期权（简称“买权”）cap （利率）上限condominium 公寓私有的共有方式co-payment 共同支付counterparty 交易对手credit guarantee 信用担保credit risk 信用风险deductible/deduction 免赔额delivery 交割delivery date 交割日derivative 衍生工具diversifiable risk 可分散的风险diversification principle 分散化（或多元化）原则European-type option 欧式期权exclusion 除外责任expiration date 到期日expire 到期face value 面值fictitious 虚构的firm-specific risk （公司）私有（或特有）风险forward contract 远期合约forward price 远期价格future contract 期货合约guarantee 保证、保证人、担保、担保品loan guarantee 债务保单long position 多头market risk 市场风险non-diversifiable risk 不可分散的风险premium 保险费、附加费、溢价proceed n. 盈利put option 卖出期权（简称“卖权”）rolling over 滚动（式）的short position 空头shortfall 不足之数、赤字spot price 即期价格standardized （经）标准化的strike price/ exerciseprice执行价格、行权价swap contract 互换合约、调期合约Chapter 12decision horizon 决策（修正）期限efficient portfolio 有效组合efficient portfolio frontier 有效组合前沿expected return 期望收益率mean-variance model 均值－方差模型minimum-varianceportfolio最小方差组合mutual fund 共同基金optimal combination ofrisky assets风险资产最优组合planning horizon 计划期、规划期point of tangency 切点portfolio selection （投资）组合选择risk premium 风险溢价risk tolerance 风险容忍（度）riskless asset 无风险资产risky-asset portfolio 风险资产组合set of……的集合tangency portfolio 切线组合target expected return 目标期望收益率trade-off 权衡、平衡trading horizon 交易（间隔）期限Chapter 13active investmentstrategies积极投资策略active portfolio selectionstrategy积极的组合选择策略Arbitrage Pricing Theory （APT）套利（定价）理论beat the market 打败市场benchmark 基准benchmark portfolio 基准组合Capital Asset PricingModel（CAPM）资本资产定价模型capital market line（CML）资本市场线consensus 一致、一致同意cost of capital 资本成本covariance 协方差equilibrium asset price 均衡（的）资产价格equilibrium expectedreturn均衡（的）期望收益率equilibrium price 均衡价格equilibrium risk premium 均衡风险溢价indexing 指数化irreducible 不能减少的、难复位的marginal contribution 边际贡献market portfolio 市场组合market-related risk 市场相关的（或承认的）风险multifactor IntertemporalCapital Asset PricingModel（ICAPM）多因子、跨期资本资产定价模型mutual fund 共同基金non-market risk 非市场风险passive investing 消极投资passive portfolio selectionstrategy消极的组合选择策略pension fund 养老基金regression coefficient 回归系数reward-to-risk ratio 风险补偿比率security market line（SML）证券市场线short-sale 卖空systematic risk 系统风险unsystematic risk 非系统风险Chapter 14arbitrageur 套利者bountiful 慷慨的、充足的casino 卡西诺赌场、小别墅closing out（one’s/a）position平仓continuouscompounding连续复利cost of carry 持有成本daily marking to market 逐日盯市（即每日无负债清算制度）delivery 交割delivery date 交割日delivery price 交割价格expectationshypothesis期望假说financial future 金融期货（即标的物为金融产品的期货合约）foreign-exchangeparity relation汇率平价关系forward contract 远期合约forward price 远期价格forward-spotprice-parity relation 远期-即期价格间的平价关系future contract 期货合约future price 期货价格future spot price 将来的现货价格hedger 套期保值者intrinsic value 内在价值margin 保证金open interest 未平仓合约数、头寸开放权益数position 头寸posting of margin （对）保证金（进行）过帐quasi-arbitrage 准套利（机会）replicate 复制speculator 投机者spoilage 损坏spot price 即期价格、现货价格spread 价差、差额the wall street journal 《华尔街日报》Chapter 15American-typeoption美式期权arrear 应付欠款、储备物at the money option 两平期权Black-Scholes model 布莱克-斯科尔斯期权定价模型boom 繁荣的bullish 乐观的call （option）买入期权（简称买权）、看涨期权capital-gain 资本（性）收益cash settlement 现金结算Chicago BoardOptions Exchange（CBOE）芝加哥期权交易所commission 佣金Contingent Claims 或有权益（简称或有权、或然权）credit guarantee 信用保证（或承诺）de facto 实际的、实际上decision tree 决策树delinquency 失职、违法行为dividend yield 股利收益率dividend-adjusted option formula 股利调整期权（定价）公式embedded option 嵌入式期权European put option 欧式卖权European-typeoption欧式期权evasion 逃避、躲避Exchange-traded option 场内（即在交易所交易的）期权exercise price/strikeprice执行价格/敲定价格expirationdate/maturity date到期日explicit 外生的flexibility 灵活性、柔性FutureOptions/Option onFutures期货期权growth option 增长期权guarantor 保证人hedge ratio 对冲比率、套期比率implicit 内生的implied volatility 隐含波动率in the money option 虚值期权incremental 增量的、增加的index option 指数期权intrinsicvalue/tangible value内在价值、执行价值junk bond 垃圾债券litigation 诉讼、争论mainline 主流的、传统的natural logarithm 自然对数normal distribution 正态分布Option 期权out of the moneyoption实值期权Over-the-counteroption场外（交易的）期权payoff diagrams 支付图plaintiff 起诉人provision 条文、条款put （option）卖出期权（简称卖权）、看跌期权put-call parityrelation买（权）与卖（权）间的平价关系real option 实物期权recession 衰退self-financinginvestment strategy自融资投资策略sequel 续篇、后果shortfall 不足之数、赤字stochastic 随机的 swap 互换 time value 时间价值 truncate截断two-state （binomial ）option pricing model 两状态（二项式）期权定价模型 underlying asset 标的资产、基础资产Chapter 16account payable 应付账款accrued wage应计工资adjusted present value （APV ）（经）调整的现值 after-tax incremental cash flow 税后增量现金流agency cost 代理成本 allegiance 忠诚、忠贞 all-equtiy financing 全权益融资 bankruptcy cost破产成本bankruptcy proceeding 破产程序、破产诉讼 Capital Structure资本结构capital structure irrelevance proposition 资本结构无关性定理 circumvent 绕过、智胜 collateral 担保品 common stock 普通股 corporate income tax公司所得税cost of financial distress 财务危机（危难）成本 debt financing 债务融资 entity实体、本质、存在 equity financing 权益融资 external financing外部融资（筹资） fiduciary受信托的 financial distress财务危机（危难） financing instrument 金融工具 franchise 特许权 free cash flow自由现金流 frictionless 无摩擦的gourmet供美食家的享用的、美食家imminent 临近的、迫在眉睫的 interest tax shield （债务）利息税盾 internal financing 内部融资（筹资） issuing new stock 发行新股leveraged investment 杠杆投资（即投资额中有部分债务融资） long-term lease 长期租赁 M & M proposition MM 定理market debt-to-equity ratio（用）市场（价值表示的）债务-权益比率market-value/economic balance sheet （用）市场价值（表示的）资产负债表 Modigliani & Miller （M 莫迪里阿尼和米勒& M ）optimal capital structure 最优资本结构 pension liability 养老金（形式的）债务 perk额外补贴 personal income tax 个人所得税 preferred stock优先股学习必备欢迎下载prestige 威信、声望pro rata 按比例的realized capital gains 已实现资本收益redeploy 重新部署（布置、调派）repurchase stock 回购股票residual claim 剩余索取权（求偿权）retained earning 留存收益scrutiny 细致检查secured debt 安全债务stock option 股票期权subsidy 津贴、财政援助、特别津贴voting right 投票权warrant 认股权证、认股权weighted average costof capital（WACC）加权资本成本Chapter 17acquisition 收购bargain v. 讲价、讨价还价；n. 便宜货、交易、协定breakup 分散、中止、崩溃consolidation 合并、联合、巩固consummate 完成、使…完美contest 竞争、争夺corroborate 加强证实、巩固、支持discretion 决定权、谨慎、判断力divest 使…脱去information set 信息集loss carry-forward 亏损递延malevolence 恶意、坏影响merger 兼并opaqueness 不透明real option 实物期权spin-off 派生出、让产易股、抽资脱离synergy 协同增效takeover 接管。
《Corporate Finance (公司金融学)》课件 (31)
30.9 The NPV of a Merger
• Typically, a firm would use NPV analysis when making acquisitions.
• The analysis is straightforward with a cash offer, but gets complicated when the consideration is stock.
30.10 Defensive Tactics
• Target-firm managers frequently resist takeover attempts.
• It can start with press releases and mailings to shareholders that present management’s viewpoint and escalate to legal action.
30.7 A Cost to Stockholders from Reduction in Risk
• The Base Case
– If two all-equity firms merge, there is no transfer of synergies to bondholders, but if…
• Divestiture can take three forms:
– Sale of assets: usually for cash – Spinoff: parent company distributes shares of a
subsidiary to shareholders. Shareholders wind up owning shares in two firms. Sometimes this is done with a public IPO. – Issuance if tracking stock: a class of common stock whose value is connected to the performance of a particular segment of the parent company.
finm7007 course outline
1 | T H E A U S T R A L I A N N A T I O N A L U N I V E R S I T YFINM7007Applied Corporate FinanceCourse DescriptionThis course focuses on tools and techniques used in modern financial management. Material in the course has an applied focus and is designed to provide students with the knowledge and skills required for understanding, exploring and analysing financial managment issues. The course draws upon topical material in order to contextualise theoretical discussion, and present students with examples in practice.Semester and Year Semester 2, 2014Course URL.au/course/FINM7007 Mode of Delivery On campus lectures, workshops and tutorialsPrerequisitesCompleted or enroled in STA7055 and FINM7006; completed BUSN7008 or BUSN8181Course Convener Dr Xin Liu Office Location: CBE Building Room 3.63 Phone: TBA Email: Xin.Liu@.au Consultation hours: Thursday 1pm-3pm, or by appointment Bio and research interests Corporate Finance Student Administrators Anna PickeringAnna.Pickering@.auCBE Building Room 4.48, CBE Building 26CCOURSE OVERVIEWCourse Learning OutcomesUpon successful completion of the requirements for this course, students will be able to:●Attain basic knowldege of some the key issues facing financial managers●Develop proficiency in the ares of asset valuation and project evaluation and;●Deepen their understanding of the finance theory underlying financial management.WorkloadsStudents taking this course are expected to commit at least 10 hours a week to completing the work.This will include:●Lectures: 2 hours●Workshop: 1 hour●Tutorials: 1 hour●Private study: 6 hoursResearch-Led TeachingStudents undertaking this course will be imparted with the necesary skills for industry based research. This will include involving students in critical analysis of inudstry based problems such as valuation, capital budgeting and risk assessment.Technology, Software, EquipmentA non-programmable scientific calculator is a necessity for every enrolled student in this course.Requisites●To enrol in this course you must have completed or be enroled in STAT7055 andcompleted FINM7006, and completed BUSN7008 or BUSN8181.●The tutorial worksheet assignments will involve the use of a PC or Mac computer.You need to be familar with word processors and with spreadsheets (in particular Excel)Student FeedbackAll CBE courses are evaluated using Student Experience of Learning and Teaching (SELT) surveys, administered by Planning and Statistical Services at the ANU. These surveys are offered online, and students will be notified via email to their ANU address when surveys are available in each course. Feedback is used for course development so please take the time to respond thoughtfully. Course feedback is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching and to improve courses across the university. For more information on student surveys at ANU and reports on feedback provided on ANU courses, visit .au/surveys/selt/students/and .au/surveys/selt/results/learning/COURSE SCHEDULELecture: Tuesday, 10-12am, Location: COP TWorkshop: Thursday, 3-4pm, Location: MCC T3Week Summary of Activities Activity Readings Assessment1 (Jul 21) Introduction and Revision ofAssumed Knowledge Lecture Lecture notes 1Ch 1, 3-6, 9, 112 (Jul 28) Investment Decisions Rules Lecture/Tutorial Lecture notes 2Ch. 73 (Aug 4) Capital Budgeting:Fundamentals Lecture/Tutorial Lecture notes 3Ch. 8-9Quiz 14 (Aug 11) Risk and Cost of Capital Lecture/Tutorial Lecture notes 4Ch. 10-125 (Aug 18) Capital Structure I: MMTheory, Debt and Taxes Lecture/Tutorial Lecture notes 5Ch. 14-15Quiz 26 (Aug 25) Capital Structure II: FinancialDistress, Agency Cost, andTradeoff Theory Lecture/Tutorial Lecture notes 6Ch. 167 (Sept 1) Payout Policy Lecture/Tutorial Lecture notes 7Ch. 17Quiz 3Mid-semester break: 6 Sept to 21 Sept inclusive8 (Sept 22) Capital Budgeting:Extensions Lecture/Tutorial Lecture notes 8Ch. 189 (Sept 29) Valuation and FinancialModelling Lecture/Tutorial Lecture notes 9Ch. 19Quiz 410 (Oct 6) Equity Financing Lecture/Tutorial Lecture notes 10Ch. 2311 (Oct 13) Debt Financing Lecture/Tutorial Lecture notes 11Ch. 2412 (Oct 20) M&A and Governance Lecture/Tutorial Lecture notes 12Ch.28-29Quiz 5 13 (Oct 27) Review Lecture/Tutorial Lecture notes 13 COURSE ASSESSMENTAssessment SummaryItem Title Value Due Date1 Quizzes 15% Held through out semester intutorials. Dates outlined in theschedule.2 Group assignment 25% TBA3 Final exam 60% TBAQuizzes: total weighting 15%.5 tutorial quizzes are counted towards the final grade and all quizzes are of equal value (5%).The quizzes are designed to : (i) measure how well students have synthesized the concepts learned in class; (ii) keep students up to date; (iii) provide feedback for lecturer and student on their progress for the course.If a student misses a tutorial in which a quiz is held then they will not be able to make up the quiz and will be awarded a zero for that quiz.Details of task:Quizzes will be closed book and held at the end of the tutorial (see course schedule) for a duration of 10-15 minutes. The content for the quizzes will be limited to the required material for the tutorial in which it is held. Quizzes maybe a combination of multiple choice, short answer concept questions and/or numerical problems where you must show all working. Bring your pencils and calculator to each quiz. The material in your text and on Wattle is subject to examination. The marking criteria will be based on model solutions and answers prepared by the lecturer and will be made available to sutdents after the last quiz in the week is held.Group Assignment:total weighting 25%One group assignment will be given on lecture topics which enables students to apply techniques learned in the course to practical problems. In addition, it allows the opportunity for team work and t ests the student’s analytical skills and writing capabilities. Group will be assigned by the lecturer and students are expected to collaborate with other group members to work on the assignment.Assignment Submission and ReturningOnly 1 copy of the assignment solution is required for each group at the submission. Methods of submission/Returning: TBAExtensions and PenaltiesExtensions: N/APenalties: Students fail to submit assignment reports on time will be given a zero.Referencing RequirementsPlease clearly cite any reference used in your assignments, reports and etc.Final Examination: Total weighting 60%Duration – 3 hours (date: TBA)This is a close book exam and no formula sheet is allowed. A mixture of theory and practical (numerical) questions will be asked. Students will need to review and revise all material (weeks 1-13) pertaining to the course. Students will be provided with further details regarding the exam as it approaches. The marking criteria will be based on model solutions and answers prepared by the lecturer.The final exam is designed to: (i) test the students’ understanding and comprehension of the course material; (ii) ensure they have obtained the learning objectives of the course.Results and ExaminationsIn accordance with the University Assessment Grades/Codes, CBE applies the following scale when awarding grades:READING LISTSPrescribed text:“Corporate Finance”, 3rd Edition, by Berk and DeMarzoOther Reading“Valuation – Measuring and Managing the Value of Companies”, McKinsey & Company, by Koller, Goedhart, and WesselsCode of Ethics and Standards of Professional Conduct:http://www//learning/products/publications/ccb/Pages/ccb.v2010.n14.1.aspx Standards of Practice Handbook (pages 1-9; 49-68)http://www//learning/products/publications/ccb/Pages/ccb.v2010.n2.1.aspxTUTORIAL REGISTRATIONEnrolment in tutorials will be completed online using the CBE Electronic Teaching Assistant (ETA). To enrol, follow these instructions:1.Go to .au2.You will see the Student Login page. To log into the system, enter your University ID(your student number) and password (your ISIS password) in the appropriate fields and hit the Login button.3.Read any news items or announcements.4.Select "Sign Up!" from the left-hand navigation bar.5.Select your courses from the list. To select multiple courses, hold down the controlkey. On PCs, this is the Ctrl key; on Macs, it is the key. Hold this key down while selecting courses with the mouse. Once courses are selected, hit the SUBMIT button.6. A confirmation of class enrolments will be displayed. In addition, an emailconfirmation of class enrolments will be sent to your student account.7.For security purposes, please ensure that you click the LOGOUT link on theconfirmation page, or close the browser window when you have finished your selections.8.If you experience any difficulties, please contact the School Office (see page 1 forcontact details).9.Students will have until the end of week 2 to finalise their enrolment in tutorials. Afterthis time, students will be unable to change their tutorial enrolment.COMMUNICATIONEmailIf necessary, the lecturers and tutors for this course will contact students on their official ANU student email address. Information about your enrolment and fees from the Registrar and Student Services' office will also be sent to this email address.AnnouncementsStudents are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures or tutorials will be posted on the door of the relevant room.Course URLsMore information about this course may be found on:• Programs and Courses (.au/2014/Catalogue)• the College of Business and Economics website (/courses) and• Wattle (https://.au), the University's online learning environment. Log on to Wattle using your student number and your ISIS password.POLICIESThe University offers a number of support services for students. Information on these is available online from .au/studentlife/ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the Univer sity’s academic standards, and implement them. You can find the University’s education policies and an explanatory glossary at: .au/Students are expected to have read the Student Academic Integrity Policy before the commencement of their course.Other key policies include:∙Student Assessment (Coursework)∙Student Surveys and Evaluations。
RAROC at Bank of America From Theory to Practice
Journal of Applied Corporate FinanceRAROC at Bank of America: From Theory to Practiceby Edward Zaik, John Walter, and Gabriela Kelling,Bank of America, andChristopherJames,FloridaofUniv ersityJOURNAL OF APPLIED CORPORATE FINANCERAROC AT BANK OF AMERICA: FROMTHEORY TO PRACTICEby Edward Zaik, John Walter, and Gabriela Kelling, Bank of America,with Christopher James,University of Florida83BANK OF AMERICA JOURNAL OF APPLIED CORPORATE FINANCE ince the late 1980s, a number of large U.S.banks have invested heavily in systems designed to measure the risks associated with their different lines of business. Themance that management can use to compare the economic as opposed to the accounting profitability of businesses with different sources of risk and different capital requirements.The use of RAROC by major money-center and regional banks to formulate capital structure targets and to evaluate performance is a major departure from traditional practice. Banks have long relied on measures such as return on assets (ROA) and return on book equity (ROE) to evaluate their own perfor-mance, both at the consolidated level and for individual operating units. And capital adequacy has been determined primarily by banks’ ability to meet minimum capital requirements set by regula-tors. Neither the regulatory requirements nor con-ventionally-applied ROA or ROE measures are ad-justed in any systematic way for differences in the risks of the bank’s various activities. The Basel guidelines, for example, effectively assign the same capital requirement to all commercial loans, regard-less of their degree of risk, while requiring no capital for taking deposits and positions in Treasury bonds. Following the regulators’ example, many bank managements—at least until fairly recently—have been content to use the Basel guidelines as a basis for assigning capital to business units, and to measure the ROEs of those units on that basis. But bankers’ increasing recognition of the shortcomings of these traditional measures is prompting growth in the use of RAROC and its risk-based methods for allocating capital.immediate purpose of such risk measurement sys-tems is to provide bank managements with a more reliable way to determine the amount of capital necessary to support each of their major activities,and thus to determine the equity capital required by the bank as a whole.This recent interest in measuring risk is partly a response to the greater regulatory emphasis on capital adequacy that has come with implementation of the Basel risk-based capital requirements issued in 1988 and the passage of FDICIA in 1991. Even more important than such regulatory changes, how-ever, are fundamental changes in the business of banking that have forced bank managements to seek better ways to measure operating performance. As the progressive deregulation (capital requirements aside) of the industry continues, banks are choosing to provide an increasingly diverse set of products and services. The real innovation in these new performance evaluation methods lies in their ability to allocate banks’ capital among their expanding array of nontraditional, fee-based activities—many of which do not involve any direct use of capital at all. The ultimate goal of these risk-based capital allocation systems, which are often lumped together under the acronym RAROC (“risk adjusted return on capital”), is to provide a uniform measure of perfor-SAs suggested, then, it is primarily changes in the business environment, not regulatory man-dates, that are driving banks to make changes in their capital allocation and performance measure-ment systems. The increase in competition that has come with deregulation has squeezed profit margins in most traditional banking activities, thus driving the quest for new sources of revenue and profit. And the resulting greater diversity of bank businesses is causing bankers to devote more attention to managing the relatively unfa-miliar risks associated with those businesses. But perhaps the most powerful impetus to bankers’use of more systematic risk measures is coming from increasingly activist institutional investors. Such investors, together with the operation of the corporate takeover market, are exerting tremen-dous pressure on managements to realize the potential for adding shareholder value within their organizations. The clear expectation for these RAROC systems is that better measurement methods will produce better performance by holding managers accountable for the amount of investor capital they are putting at risk.In this article, we examine how risk-based capital allocation models work by describing the RAROC system developed by Bank of America. In 1993, B of A’s Risk and Capital Analysis Group was charged with the task of developing and instituting a single corporate-wide system to allocate capital to all the bank’s activities. Since 1994, that system has been providing quarterly reports of risk-adjusted returns on capital for each of the bank’s 37 business units. By 1995, B of A had also developed the capability to calculate RAROC down to the level of individual products, transactions, and customer re-lationships. The three-year process of developing and implementing a system to measure economic returns provides an interesting case study in the application of financial theory to real business problems.We begin by discussing the financial theory of allocating equity capital among different busi-nesses in the context of Bank of America’s objec-tives for measuring risk-adjusted capital. Then we provide a detailed look at the measurement sys-tem itself, including each of the four different sources of risk—credit, country, market, and busi-ness (or nonportfolio) risk—that together deter-mine the amount of capital assigned to an activity. Third and last, we discuss the challenges of implementing a RAROC system into an organiza-tion as large and diversified as the present-day B of A, and the promise that RAROC holds out for creating and reinforcing a value-based corporate culture.RAROC AND FINANCIAL THEORYDevelopment of the RAROC “methodology”was started in the late 1970s by a group at Bankers Trust. Their original intent was to measure the risk of the bank’s credit portfolio, and the amount of equity capital necessary to limit the exposure of the bank’s depositors (and other debtholders) to a specified probability of loss. Since then, a number of other large banks have developed RAROC (or RAROC-like) systems, in most cases with the aim of quantifying the amount of equity capital necessary to support all of their operating activities, fee-based and trading activities as well as traditional lending.Bank of America’s policy is to capitalize each of its business units in a manner consistent with a AA credit rating based on the unit’s “stand-alone”risk, but also including an adjustment for any internal diversification benefits provided by the unit. (As we discuss in more detail later, the stand-alone risk of a business unit is measured by the expected, or forward-looking, volatility of its oper-ating value.) Each of these individual capital alloca-tions are then aggregated to arrive at the optimal level of equity capital for the entire bank.RAROC systems allocate capital for two basic reasons: (1) risk management and (2) performance evaluation. For risk management purposes, the overriding goal of allocating capital to individual business units is to determine the bank’s optimal capital structure—the proportion of equity to assets that minimizes the bank’s overall cost of funding. This process involves estimating how much the risk (or volatility) of each business unit contributes to the total risk of the bank, and hence to the bank’s overall capital requirements.For performance evaluation purposes, RAROC systems assign capital to business units as part of a process of determining the risk-adjusted rate of return and, ultimately, the “economic profit” of each business unit. The objective in this case is to mea-sure a business unit’s contribution to shareholder value, and thus to provide a basis for effective capital budgeting and incentive compensation at the business unit level.VOLUME 9 NUMBER 2 SUMMER 19968485JOURNAL OF APPLIED CORPORATE FINANCERAROC and Risk ManagementWhat guidance does corporate finance theory provide managers in how to allocate capital? First let’s consider the issue of risk management and optimal capital structure. Allocating equity capital on the basis of the risk of individual business units may seem pointless to those familiar with Modigliani and Miller’s Proposition I—the so-called capital structure irrelevance theorem. The key insight of the M & M theory is that, in a “frictionless” capital market (one with perfect information, and without taxes, bank-ruptcy costs, or conflicts between managers and shareholders), how a corporation finances itself—whether predominantly with debt or with equity—will not affect the value of the firm in any systematic or predictable way. The logic behind this conclusion is simple: Because individual investors can create “homemade” leverage and diversify most “firm-specific” corporate risks simply by adjusting their own portfolios, they will not reward corporations that undertake these activities on their behalf by lowering their required rates of return. If one accepts this conclusion, there is little to be gained from risk management or, by extension, from devoting re-sources to determining the appropriate amount of equity capital for a bank—much less for individual business units within the bank.But, of course, no self-respecting banker would accept the proposition that capital markets operate without frictions. Indeed, banks and other financial intermediaries often add value precisely through their ability to reduce market frictions that put off public bondholders—frictions such as limited public information and the possibility of costly renegotia-tions of troubled credits. Nevertheless, the M & M framework provides a useful starting point in the following sense: In the process of demonstrating why capital structure doesn’t matter, it also suggests the ways in which the capital structure choice can increase value—namely, by (1) reducing taxes paid by investors or the company; (2) reducing informa-tion costs; (3) reducing the costs of financial trouble (or liquidity constraints); and (4) strengthening managers’ incentives to invest in all positive NPV projects while rejecting all others.Finance theory thus suggests that, in designing a capital allocation system, the first step is to identifythe costs and benefits of holding equity capital in the context of these market frictions. In banking, as in most industries, the tax shield provided by tax-deductible interest payments (as opposed to non-deductible dividends) creates an incentive to make extensive use of debt financing. Banks’ access to fixed-rate deposit insurance also makes debt in the form of deposits a low-cost source of funding. When combined with this federal insurance subsidy, de-positors’ further reduction of their required interest rates for the liquidity and convenience of demand and time deposits is an added incentive for banks to use this form of leverage.Another important motive for increasing lever-age, or reducing equity, is the potential for high leverage to strengthen management’s incentive to operate as efficiently as possible, to make necessary cutbacks to restore profitability, and to reject all investment projects that do not promise to return their cost of capital. This incentive benefit of high leverage can be significant in industries with excess capital. Given the overcapacity in their traditional businesses, many banks today are choosing to pay out their excess capital in the form of large stock repurchases—decisions that are almost invariably rewarded by the stock market.Such benefits of increasing financial leverage must, of course, be weighed against the costs. In the extreme case, high leverage can lead to default and a costly reorganization. But there are also significant costs to banks that can arise in cases of financial distress that are much less extreme. For one thing,FDICIA imposes heavy costs (in the form of in-creased regulatory oversight) on banks that violate the minimum capital standards. But the most serious deterrent to high leverage in banking is the possibil-ity for liquidity constraints to cause major disruptions of a bank’s operating activities.As Robert Merton and Andre Perold pointed out in a recent article in this journal,1 banks and other financial firms can be distinguished from industrial companies by the fact that their customers are often also their largest liability holders. For example, a bank’s depositors, swap counterparties, and letter-of-credit beneficiaries all have liability claims on the bank. And because these customers place a pre-mium value on assurances of performance on their contracts, they show a strong preference for banks1. “Theory of Risk Capital for Financial Firms,” Journal of Applied Corporate Finance , Vol. 6 No. 3 (Fall 1993).The most powerful impetus to bankers’ use of more systematic risk measures is coming from increasingly activist institutional investors. The clear expectation for these RAROC systems is that better measurement methods will produce better performance by holding managers accountable for the amount of investor capitalthey are putting at risk.with a high credit quality. As a consequence, a high credit rating is generally held to be essential for a bank to be a major swaps dealer, to underwrite securities, or to compete effectively in the corporate banking market.2In sum, the sensitivity of banks’ customers to banks’ credit ratings is likely to mean revenue forgone and thus a major loss of operating value for those banks whose credit quality falls below a certain level. In recognition of this potential cost of high leverage, B of A has established capital standards that are consistent with maintaining a AA credit rating on its senior debentures—and, as suggested earlier, all of its businesses are implicitly capitalized to a AA standard.Defining Risk: Vol atil ity of Book Capital or Market Value? Up to this point, we have noted that the RAROC system assigns equity capital primarily according to the “stand-alone” risk of a business unit, and that such risk is in turn a function of the volatility of the business unit’s value. But this raises a theoreti-cal issue that has considerable practical import: In setting a capital structure target for a bank, how does one measure the volatility of its value—or the volatility of the value of its individual units? Is it the volatility of the bank’s stock price, or of some proxy for market value such as a business unit’s economic cash flows? Or is it the volatility of the bank’s reported earnings and book capital—the main focus of the regulators—that is critical in determining capital adequacy?Given the rationale for managing the capital position of a bank just presented—in particular, the need to maintain a high credit rating to support the bank’s off-balance-sheet activities—the relevant measure of risk for determining capital adequacy is the volatility of a bank’s market value, not the volatility of its book or regulatory capital.3 Banks’ability to smooth their reported earnings using the loan loss provision and other reserves is well under-stood by institutional investors and the bond rating agencies.4 For this reason, bank credit ratings are more likely to be influenced by the volatility of the underlying variables that affect bank stock prices than by year-to-year changes in bank earnings and book capital.And, just as a bank’s overall capital should depend on the volatility of its market value, capital allocations to individual business units of the bank should be made on the basis of the “contribution” of each business unit to the overall volatility of the bank’s market value.5 For many of the fee-based activities of banks, this is likely to mean assigning considerably more capital than such operations require in their day-to-day execution. Take the cases of securities underwriting and the issuance of com-mitments. Although neither requires much capital for day-to-day funding of operations (what Merton and Perold refer to as “cash capital”), both require the implicit backing of significant amounts of the bank’s capital (“risk capital”).Taking Account of Internal Diversification Benefits. But while the assignment of risk capital will mean larger capital allocations to fee-based activities than under traditional measurement sys-tems, there is also one offsetting factor—the extent to which “nonsynchronous” cycles in a given activity’s profits and operating value serve to reduce swings in the bank’s overall market value. To measure the risk “contribution” of a unit to the entire bank, one must take into account not only the “stand-alone” volatility of a business, but also how an individual business unit’s market value varies with the value of other units within the bank. For example, a business whose operat-ing cash flows are strongly correlated with the profits of the rest of the bank will require a larger amount of capital than will a business (of the same volatility) whose profits move in countercyclical fashion. The logic for this diversi-fication adjustment is straightforward: the countercyclical business has diversification ben-efits for the bank as a whole that enable the bank to operate with less equity capital.2. This argument also suggests that if the importance of a high credit rating varies with the type of business, the capital requirements will vary. Requiring all businesses to be capitalized at a particular level may create an additional burden for those businesses that require a lower credit rating.3. B of A, like most banks, focuses on the volatility in the market value of its common stock when evaluating capital adequacy. An alternative objective of risk management is volatility in the cash flows or earnings. The idea here is that, given the costs of external financing, the ability of the enterprise to engage in positive net present value may be impaired by adverse shocks to cash flow or earnings. But, given the ongoing access by financial firms to the capital markets, managing cash flow volatility is less likely to be a target of a risk management program than for nonfinancial firms.4. For evidence of the market’s ability to see through accounting earnings to cash, see in this issue the comments by the bank securities analysts in “Roundtable on Current Issues in Commercial Banking: Strategic Planning, Performance Measurement, and Incentive Compensation.”5. As a practical matter, many of a bank’s businesses do not mark their portfolios to market on a regular basis. As a result, tracking the volatility of market values is not possible. For those businesses, volatility in economic earnings must be used as a surrogate for volatility of market values.VOLUME 9 NUMBER 2 SUMMER 199686RAROC, Economic Profit, and Performance MeasurementIn addition to risk management and capital structure planning, RAROC systems are used to evaluate the performance of business units. In this context, the risk-adjusted return on capital serves as a more reliable measure than traditional ROE. If a business unit’s RAROC is higher than the cost of equity—shareholders’ minimum required rate of return—then the unit is judged to be creating value for shareholders. But if RAROC is below the cost of equity, the unit is reducing shareholder value.But this is not the last step in the analysis. The use of rates of return—whether RAROC or traditional measures like ROE or ROA—does not provide a basis for measuring how much value is being created or destroyed by an operation. Indeed, the exclusive use of RAROC, or any rate-of-return, to evaluate performance can lead to corporate-wide underinvestment. Maximizing shareholder wealth requires that a bank undertake all new projects that exceed the cost of capital. If managers are rewarded solely on the basis of ROE, or RAROC, they are likely to reject value-increasing projects that will lower their average returns.To avoid this problem and create the right investment incentives for managers, performance should be evaluated according to the “residual income”—or what B of A calls the “economic profit”—of the activity. Economic profit is calculated as earnings (net of taxes, interest payments, and expected credit losses) less a charge for the cost of equity capital. The objective of this calculation, again, is to provide a measure of the value added by a particular activity—one that allows the operating performance of “off-balance-sheet” activitites to be compared to that of traditional asset-based activities. The value added associated with each activity can then be used as a basis for managerial incentive compensation as well as a guide to managers in determining whether to expand that activity through additional investment.Reconciling RAROC with the CAPM. At Bank of America, the capital charge for each business is obtained by multiplying economic capital by the same, corporate-wide cost of equity capital (or the so-called “hurdle rate”). This practice appears to be at odds with the standard discounted cash flow method prescribed by modern finance theory. In accordance with the widely-used Capital Asset Pric-ing Model (CAPM), the cost of capital for each activity should reflect the “systematic” risk of that activity. By systematic risk we mean the “covari-ance” of that operation’s value (as measured by its beta) with the value of the market portfolio.B of A’s decision to use a common hurdle rate for all business units was motivated by a number of considerations. One is the difficulty of estimating betas for individual lines of business with few stand-alone competitors. And given the lack of objective data, the “influence costs” arising from disputes among managers assessed different costs of capital were likely to be significant. But yet another, and probably the decisive, factor in our choice of a single hurdle rate was our judgment that a more theoreti-cally precise use of the CAPM would not lead to material differences in results. As noted, our RAROC system effectively confers diversification benefits on individual business units in the form of reduced capital allocations. And this in turn means that the risk “contributions” of individual units are based on “internal betas,” if you will. That is to say, the units are not being charged for that portion of their overall risk that is diversified away by the structure of the bank as a whole. And, to the extent that a bank as large and diversified as B of A can be viewed as a surrogate for the broad market, then this application of RAROC may end up producing results very similar to those generated by a CAPM system with multiple discount rates.6The Goal for Managers: Increasing Economic Profit. Although B of A applies a common hurdle rate to all its different businesses to determine whether they are adding value for shareholders, business managers are rewarded for incremental improvements in economic profit. The objective is6. The objective of allocating more capital to riskier activities is to ensure that the risk (as measured by an internal beta) of an equity investment in each activity is similar. This process ensures that even though risk on an “unlevered” basis may vary widely across the various activities of the bank, on a levered basis the risk of various activities is the same.As a technical matter, if the bank holds a well diversified portfolio of businesses, the cost of equity will be identical since the effect of the capital allocation process is to make the internal betas for equity investments the same across the projects. In addition, it can be shown that if the bank holds an efficiently diversified portfolio of businesses, the internal betas will be identical to the betas of each activity with the market. To the extent that the bank does not hold an efficiently diversified portfolio of businesses, the higher the R2 of the banks stock returns with the market returns the closer the internal betas will be to market-based betas.Maximizing shareholder wealth requires that a bank undertake all new projects that exceed the cost of capital. If managers are rewarded solely on the basis of ROE, or RAROC, they are likely to reject value-increasing projects that will lower theiraverage returns.87JOURNAL OF APPLIED CORPORATE FINANCEto “level the playing field” for line managers, ensur-ing that some operating heads are not rewarded for inheriting highly profitable operations while pro-viding stronger encouragement for turnaround situ-ations.To summarize, then, corporate finance theory implies that capital should be allocated on the basis of each business’s contribution to the overall volatil-ity or risk of the bank’s market value of equity. In addition, performance should be evaluated on the basis of the economic value added by the bank’s activities. We now turn to a discussion of how this framework is being applied in the real world. RAROC AT BANK OF AMERICAUntil late 1993, the primary profitability mea-sure in management reports at Bank of America was return on assets—that is, net income divided by total assets. For several years prior to this, the Bank had struggled with little success to measure performance on a risk-adjusted basis. Like many other banks, B of A had attempted to apply Risk Based Capital Guide-lines to profitability measurement. Using the regula-tory requirements to determine the equity levels of each business, the bank had developed a compli-cated process for assigning different risk-based hurdle rates to each business for capital budgeting and performance evaluation. But, because of the difficulty of reconciling regulatory equity require-ments with a portfolio-based risk framework, this approach met with considerable internal resistance.In November 1993, efforts to redefine perfor-mance measurement were given high priority. The Risk & Capital Analysis department was formed and given the responsibility of developing the overall framework for risk-adjusted profitability measure-ment. Senior management pressed for quick imple-mentation (in fact, the overall development process was allotted just four months). The initial staffing of the department included a manager and four finan-cial analysts. To gain access to state-of-the-art indus-try practices, Risk & Capital Analysis also engaged Oliver, Wyman & Company to assist in the initial development of RAROC at B of A.The short-term objective of the RAROC project was to develop a comprehensive and consistent methodology for attributing capital to the bank’s “first tier” business units. Following a pilot test in the Bank’s U.S. Corporate Group, an initial set of RAROC calculations was performed for 37 different lines of business. Since successful completion of this first pass in March of 1994, the Bank has been progressively integrating RAROC concepts into ex-isting management reporting systems.Before saying more about the implementation process, we now provide an overview of the risk measurement and capital allocation framework that was put in place.The FrameworkRisk is defined as any phenomenon that creates potential volatility in the market value of the firm. The purpose of risk capital is to provide comprehen-sive coverage of losses for the organization as a whole. By “comprehensive,” we mean coverage of all sources of risk with a very high degree of confidence.Bank of America has identified four major cat-egories of risk associated with its various activities: Credit risk is the risk of loss due to borrower default. In addition to default risk on loans, credit risk also includes a trading counterparty’s failure to pay on a contractual obligation.Country risk is defined as the risk of loss on cross-border and sovereign exposures due to governmen-tal actions. Suspension of hard currency payments, radical devaluation of the currency, and nationaliza-tion of assets held as investments are some examples of such government actions.Market risk is the risk of loss due to changes in the market price of the Bank’s assets and obligations. Examples of market risk are foreign exchange risk, interest rate risk, and options risk on mortgages and deposits.Business risk is the uncertainty of the revenues and expenses associated with non-portfolio activities such as origination, servicing, and data processing. Business risk is a function of general industry factors, company-specific factors, and external factors such as technological advances and regulatory changes.Risk can be measured along two dimensions: expected loss and unexpected loss. As illustrated in Figure 1, expected loss is the average rate of loss expected from a portfolio. In the case of credit risk, expected losses are reflected in loan rates and fees; and because they are intended to be covered by operating earnings, such losses are reported in required loan loss provisions on a bank’s P&L. If losses always equalled their expected levels, there would be no need for capital to protect against suchVOLUME 9 NUMBER 2 SUMMER 199688。
金融 review of corporate finance studies
金融 review of corporate financestudies金融视角下的公司财务研究综述公司财务研究是现代金融领域的一个重要分支，它致力于探究企业如何有效地筹集、分配和使用资金，以实现企业价值最大化。
从金融的角度来审视公司财务研究，我们可以看到一系列的理论和实证研究，这些研究不仅为我们提供了深入理解企业财务行为的工具，也为企业的实际运营提供了指导。
在公司财务研究领域，资本结构理论是一个核心议题。
该理论主要关注企业应如何平衡股权和债务融资，以达到最优的资本结构。
例如，权衡理论指出，企业应该根据债务的税盾效应和破产成本之间的权衡来确定最优的债务水平。
而优序融资理论则提出，企业偏好于内部融资，其次是债务融资，最后是股权融资。
此外，公司财务研究还涉及股利政策、投资决策、并购与重组等多个方面。
股利政策研究关注企业应如何分配利润，以平衡股东的短期收益和企业的长期发展。
投资决策研究则关注企业应如何评估和投资项目，以最大化企业的长期收益。
并购与重组研究则主要关注企业如何通过并购和重组来实现规模经济、协同效应和多元化经营等战略目标。
在实证研究方面，公司财务研究也取得了丰硕的成果。
例如，通过对大量企业的财务数据进行分析，研究者发现了一些有趣的规律。
例如，企业的资本结构与企业的规模、盈利能力、行业特性等因素密切相关。
此外，研究还发现，企业的财务行为与其所处的宏观经济环境密切相关，如货币政策、经济周期等因素都会对企业的财务行为产生影响。
总的来说，公司财务研究是一个充满挑战和机遇的领域。
随着金融市场的不断发展和金融工具的不断创新，我们相信未来的公司财务研究会为我们揭示更多关于企业财务行为的奥秘，为企业的健康发展提供更有力的支持。
与金融有关的英语术语
与金融有关的英语术语The world of finance is a complex and ever-evolving landscape, with a unique vocabulary that can be challenging for the uninitiated. From Wall Street to Main Street, the language of finance has become an integral part of our daily lives, and understanding these terms is crucial for navigating the financial landscape. In this essay, we will explore some of the most important financial English terms and their significance.One of the most fundamental financial terms is "asset." An asset is anything of value that an individual or organization owns, such as cash, investments, real estate, or intellectual property. Assets are the building blocks of personal and corporate wealth, and their management is a central focus of financial planning and investment strategies.Closely related to assets are "liabilities," which are the debts or obligations that an individual or organization owes to others. Liabilities can include mortgages, loans, credit card balances, and other financial commitments. Understanding the relationshipbetween assets and liabilities is essential for assessing an individual's or organization's financial health and making informed decisions about debt management and investment.Another crucial financial term is "equity," which refers to the ownership stake in an asset or business. In the context of personal finance, equity is often associated with home ownership, where the homeowner's equity is the difference between the value of the home and the outstanding mortgage balance. In the world of corporate finance, equity represents the ownership shares in a publicly traded company, and the value of these shares is a key indicator of a company's financial performance.One of the most widely used financial terms is "stock," which represents a share of ownership in a publicly traded company. Stocks can be bought and sold on stock exchanges, and their prices fluctuate based on a variety of factors, including a company's financial performance, market conditions, and investor sentiment. Understanding the stock market and the factors that influence stock prices is essential for anyone interested in investing in the financial markets.Another important financial term is "bond," which is a debt security that represents a loan made to a government or corporate entity. Bonds typically pay a fixed rate of interest, known as the "coupon,"and the bond's value is inversely related to the prevailing interest rates. Bonds are often seen as a more stable investment option compared to stocks, and they can play an important role in a diversified investment portfolio.The concept of "diversification" is another key financial term that refers to the practice of spreading investments across different asset classes, sectors, or geographic regions to mitigate risk. Diversification is based on the principle that different types of investments may respond differently to market conditions, and by holding a variety of investments, an investor can reduce the overall risk of their portfolio.In the world of banking and lending, two important terms are "interest rate" and "APR" (Annual Percentage Rate). The interest rate is the amount charged by a lender for the use of their money, expressed as a percentage of the loan amount. The APR, on the other hand, is the total cost of borrowing, including any fees or charges, expressed as an annual rate. Understanding these terms is crucial when comparing loan options or evaluating the cost of borrowing.Another important financial term is "inflation," which refers to the general increase in the prices of goods and services over time. Inflation can have a significant impact on the purchasing power of a currency, and it is a key factor that central banks and policymakersmust consider when making decisions about monetary policy.In the realm of personal finance, two important terms are "credit score" and "credit report." A credit score is a numerical representation of an individual's creditworthiness, based on their credit history and other financial factors. A credit report is a detailed record of an individual's credit history, including information about their credit accounts, payment history, and any outstanding debts. Understanding these terms and monitoring one's credit health is essential for accessing credit, securing loans, and maintaining financial stability.Finally, in the world of investment, the term "portfolio" refers to the collection of assets, such as stocks, bonds, and other investments, that an individual or organization holds. The composition and performance of an investment portfolio is a key focus of financial planning and wealth management, and understanding the different types of investments and their risks and returns is crucial for making informed investment decisions.In conclusion, the language of finance is rich and complex, with a vast array of terms that are essential for navigating the financial landscape. From assets and liabilities to stocks and bonds, understanding these financial terms can help individuals andorganizations make informed decisions about their financial well-being and plan for a secure financial future.。
金融英文词典
金融英文词典本文档整理了一些常见的金融英文词汇，旨在帮助读者了解和学习金融领域的英语术语。
积累这些词汇，不仅能够丰富金融专业词汇量，同时也能够加深对金融知识的理解和运用。
A•Asset Management 资产管理: The professional management of various securities and assets, such as stocks, bonds, real estate, and others, to meet specific investment goals.•Asset Allocation 资产配置: The strategy of dividing investment portfolio among different asset classes, such as stocks, bonds, and cash, to optimize risk and return.•Auction 市场竞价: The process of buying and selling securities or other assets by offering them up for bid, andselling to the highest bidder.•Annual Percentage Rate (APR) 年息复利率: The true interest rate on a loan, including all finance chargesand fees.•Accounting 会计: The process of recording, summarizing, and analyzing financial transactions of an organization.B•Bond 债券: A debt instrument issued by a borrower to raise capital, with a promise to repay the principal and interest to the bondholders.•Balance Sheet 资产负债表: A financial statement that provides a snapshot of a company’s financial positio n at a specific point in time, showing its assets, liabilities, and shareholders’ equity.•Bull Market 牛市: A financial market characterized by rising prices and optimism among investors.•Bear Market 熊市: A financial market characterized by falling prices and pessimism among investors.•Broker 经纪人: An individual or firm that acts as an intermediary between buyers and sellers of financial securities.C•Capital 资本: Financial resources, including money, investments, or assets, that are used to generate income or wealth.•Credit 信用: The ability of an individual or business to borrow money or obtain goods or services by making a promise to pay in the future.•Currency 货币: A system of money in general use in a particular country or region.•Commodity 商品: A raw material or primary agricultural product that can be bought and sold, such as gold, oil, or wheat.•Corporate Finance 公司金融: The area of finance that deals with the financial decisions made by corporations, including capital investment, financing, and dividend policies.D•Derivative 衍生品: A financial instrument whose value is derived from an underlying asset, such as a stock, bond, or commodity.•Diversification 分散投资: The strategy of spreading investments across different asset classes, sectors, orgeographic regions to reduce risk.•Debt 债务: Money owed by an individual, company, or government to a creditor.•Depreciation 折旧: The decrease in value of an asset over time, due to factors such as wear and tear,obsolescence, or age.•Down Payment 首付: A payment made upfront when purchasing a large ticket item, such as a house or car, to reduce the amount to be financed.以上只是词典中的一小部分词汇，希望能对您在金融领域的学习和工作有所帮助。
经济增加值(EconomicValueAdded)(1)
经济增加值〔EconomicValueAdded〕名目：一、什么原因我们要价值衡量？二、经济附加值是什么？三、EVA产生的背景四、EVA的计算1.EVA的根基计算方法2.EVA计算的变量3.EVA计算的报表名目调整4.EVA计算的加权平均本钞票资本本钞票5.5.EVA的计算步骤五、EVA的应用1、作为评价指标〔Measurement〕2、构建治理体系〔Management〕。
3、建立驱策制度〔Motivation〕4、建筑理念体系〔Mindset〕六、EVA的应用实例。
1、可口可乐公司的做法2、安稳的忽然破产倒闭3、美国邮政署的扭亏4、长虹公司节节败退5、青岛啤酒的股价走势证实投资人对EVA的认同七、经济增加值的要紧局限1、适用范围的局限2、通货膨胀妨碍3、折旧妨碍4、EVA是历史性的而不是前瞻性的5、EVA不是完全意义上的利润指标八、结论【相关链接1】：2001年中国上市公司EVA排行【相关链接2】：市场增加值【相关链接3】：剩余收益【相关链接4】：参考书籍一、什么原因我们要价值衡量？——股东作为企业的最终所有者，他们的利益才是企业最全然的利益；——股东的利益表现为企业带来的收益超过其技进的资本；——股东的利益和其他利益相关者的利益是一致的；——股东价值的增如与社会整体的福利先进是一致的。
——上市公司的最终目标是实现股东投资价值最大化，这就要求衡量公司业绩的指标应该正确反映公司为股东制造的价值。
——公司每年为股东制造的价值等于收进减往全部本钞票和费用后的剩余。
——传统的业绩衡量指标如税后净利润、每股收益和净资产收益率等无法正确反映公司为股东制造的价值，要紧是因为它们存在以下两个缺陷:〔1〕传统指标的计算没有扣除股本资本的本钞票，导致本钞票的计算不完全，因此无法判公司为股东制造的价值的正确教量;〔2〕传统指标的计算以会计报表信息为本源，而会计报表信息对公司业绩的反映本身就存在局限夫真。
——以税后净利润的计算为例，其中债务资本的本钞票在计算时差不多利息的形式扣除，但股本资本的本钞票在计算中并没有显示。
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And institutional investors go along with incumbent managers…
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Board of Directors as a disciplinary mechanism
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The CEO often hand-picks directors..
Managers
Protect
bondholder
Interests
No Social Costs SOCIETY
Costs can be traced to firm
Reveal
Markets are
information efficient and
honestly and assess effect on
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The Annual Meeting as a disciplinary venue
The power of stockholders to act at annual meetings is diluted by three factors
• Most small stockholders do not go to meetings because the cost of going to the meeting exceeds the value of their holdings.
Directors often hold only token stakes in their companies. The Korn/Ferry survey found that 5% of all directors in 1992 owned less than five shares in their firms. Most directors in companies today still receive more compensation as directors than they gain from their stockholdings. While share ownership is up among directors today, they usually get these shares from the firm (rather than buy them).
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The Classical Viewpoint
Van Horne: "In this book, we assume that the objective of the firm is to maximize its value to its stockholders" Brealey & Myers: "Success is usually judged by value: Shareholders are made better off by any decision which increases the value of their stake in the firm... The secret of success in financial management is to increase value." Copeland & Weston: The most important theme is that the objective of the firm is to maximize the wealth of its stockholders." Brigham and Gapenski: Throughout this book we operate on the assumption that the management's primary goal is stockholder wealth maximization which translates into maximizing the price of the common stock.
Many directors are themselves CEOs of other firms. Worse still, here are cases where CEOs sit on each other’s boards.
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Directors lack the expertise (and the willingness) to ask the necessary tough questions..
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Why traditional corporate financial theory focuses on maximizing stockholder wealth.
Stock price is easily observable and constantly updated (unlike other measures of performance, which may not be as easily observable, and certainly not updated as frequently). If investors are rational (are they?), stock prices reflect the wisdom of decisions, short term and long term, instantaneously. The objective of stock price performance provides some very elegant theory on:
• For large stockholders, the path of least resistance, when confronted by managers that they do not like, is to vote with their feet.
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provide
mistakes and
misleading can over react
information
FINANCIAL MARKETS
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I. Stockholder Interests vs. Management Interests
In theory: The stockholders have significant control over management. The mechanisms for disciplining management are the annual meeting and the board of directors. In Practice: Neither mechanism is as effective in disciplining management as theory posits.
• Are a majority of the directors outside directors? • Is the chairman of the board independent of the company (and not the CEO of the
company)? • Are the compensation and audit committees composed entirely of outsiders?
A 1992 survey by Korn/Ferry revealed that 74% of companies relied on recommendations from the CEO to come up with new directors; Only 16% used an outside search firm. While that number has changed in recent years, CEOs still determine who sits on their boards. While more companies have outsiders involved in picking directors now, CEOs still exercise significant influence over the process.
on time
value
FINANCIAL MARKETS
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What can go wrong?
STOCKHOLDERS
Have little control over managers
Managers put their interests above stockholders
In most boards, the CEO continues to be the chair. Not surprisingly, the CEO sets the agenda, chairs the meeting and controls the information provided to directors. The search for consensus overwhelms any attempts at confrontation.
The Objective in Corporate Finance
“If you don’t know where you are going, it does not matter how you get there”