公司理财精要版第十版课后答案
公司理财精要版第10版Chap0304
（一）短期偿债能力与流动性指标
对债权人，尤其是诸如供货商之类的短期债权人 来说，流动比率越高越好。 对公司而言，高的流动性比率意味着流动性不错 ，也可能意味着现金和其他短期资产的运用效率 低下。 一般情况，流动比率至少要达到1。 注意：如果一家公司通过长期债务筹集资金，则 现金和长期负债会增加，而流动负债不变，从而 导致流动比率上升。
公司理财精要版第10版Chap0304
（三）资产管理或资金周转指标
这说明，每一美元的资产产生了0.64美元的收入
公司理财精要版第10版Chap0304
（三）资产管理或资金周转指标
净营运资本周转率 ： NWC Turnover = Sales / NWC
2,311 / (780 – 540) = 13.8 times
Net FA
3,138
3,358 C/S
2,556
2,167
Total Assets
5,394
5,033 Total Liab. & Equity
5,394
5,033
公司理财精要版第10版Chap0304
Sample Income Statement
Revenues
XYZ Corporation January 1 – December 31, 201X ( Figures in millions of dollars)
Net Cash from Investments
104
公司理财精要版第10版Chap0304
3.2 财务报表分析
福特
资产规模 相对较小
规模不同
通用
资产规模相对较大
美元编制财务报表
丰田 日元编制财务报表
公司理财精要版第10版Chap0304
《公司理财》课后习题与答案
《公司理财》考试范围：第3~7章，第13章，第16~19章，其中第16章和18章为较重点章节。
书上例题比较重要，大家记得多多动手练练。
PS：书中课后例题不出，大家可以当习题练练~考试题型：1.单选题10分 2.判断题10分 3.证明题10分 4.计算分析题60分 5.论述题10分注：第13章没有答案第一章1.在所有权形式的公司中,股东是公司的所有者。
股东选举公司的董事会,董事会任命该公司的管理层。
企业的所有权和控制权分离的组织形式是导致的代理关系存在的主要原因。
管理者可能追求自身或别人的利益最大化,而不是股东的利益最大化。
在这种环境下,他们可能因为目标不一致而存在代理问题。
2.非营利公司经常追求社会或政治任务等各种目标。
非营利公司财务管理的目标是获取并有效使用资金以最大限度地实现组织的社会使命。
3.这句话是不正确的。
管理者实施财务管理的目标就是最大化现有股票的每股价值，当前的股票价值反映了短期和长期的风险、时间以及未来现金流量。
4.有两种结论。
一种极端,在市场经济中所有的东西都被定价。
因此所有目标都有一个最优水平，包括避免不道德或非法的行为，股票价值最大化。
另一种极端,我们可以认为这是非经济现象,最好的处理方式是通过政治手段。
一个经典的思考问题给出了这种争论的答案:公司估计提高某种产品安全性的成本是30美元万。
然而,该公司认为提高产品的安全性只会节省20美元万。
请问公司应该怎么做呢”5.财务管理的目标都是相同的,但实现目标的最好方式可能是不同的,因为不同的国家有不同的社会、政治环境和经济制度。
6.管理层的目标是最大化股东现有股票的每股价值。
如果管理层认为能提高公司利润，使股价超过35美元,那么他们应该展开对恶意收购的斗争。
如果管理层认为该投标人或其它未知的投标人将支付超过每股35美元的价格收购公司,那么他们也应该展开斗争。
然而,如果管理层不能增加企业的价值,并且没有其他更高的投标价格,那么管理层不是在为股东的最大化权益行事。
公司理财精要版第10版Chap07-08
1-1
第7-8章
第三部分 折现现金流量估价
第7章 利率和债券估价 第8章 股票估价
1-2
第7章 利率和债券估价
7.1 债券和债券估价 7.2 债券的其他特点 7.3 债券评级 7.4 一些不同类型的债券 7.5 债券市场 7.6 通货膨胀和利率 7.7 债券收益率的决定因素
债券定价理论
无论票面利率为多少，只要风险（及到期日）相似， 债券的到期收益率或贴现率就很接近。
如果知道一种债券的价格，就可估算其到期收益率 （YTM），然后用该到期收益率（YTM）信息来 为其他债券估价。
这种方法还推广应用于对债券之外的其他资产进行 估价。
债务和权益的差别
债务
▪ 不代表公司所有权
例：债券估价
假定一种美国政府债券的票面利率为6.375%，将于
2013年12月到期。
该债券的面值为$1,000.
利息支付为半年一次（每年6月30日和12月31日）
按6.375% 的票面年利率，每期支付利息应为$31.875.
该债券从2009年1月1日开始的现金流量规模和发生时间 为：
$31.875 $31.875 $31.875 $1,031.875
公司（借款人）和债权人之间的书面协议，通常包 括了下列条款：
▪ 债券的基本术语 ▪ 债券的发行总额 ▪ 对作为担保的财产的描述 ▪ 偿还安排 ▪ 赎回条款 ▪ 具体的保护性约定
债券分类Bond Classifications
记名式和不记名式（Registered vs. Bearer Forms） 担保Security
如果票面利率 > 市场利率，债券价格 > 面值（溢价债券）。
公司理财课后习题参考答案
公司理财课后习题参考答案ANSWS第1章习题答案1．在投资活动上，固定资产投资大量增加，增加金额为387270117（万元）2．在筹资活动上，非流动负债减少，流动负债大大增加，增加金额为29990109（万元）3．在营运资本表现上，2022年初的营运资本20220220（万元）2022年末的营运资本21129988（万元）营运资本不仅大大减少，而且已经转为负数。
这与流动负债大大增加，而且主要用于固定资产的形成直接相关。
第2章习题答案1．PV200(P/A,3%,10)(P/F,3%,2)1608.11（元）2．5000012500(P/A,10%,n)(P/A,10%,n)50000/125004查表，(P/A,10%,5)3.7908(P/A,10%,6)4.3553n543.7908(65)(43.7908)插值计算：n5654.35533.79084.35533.7908n5.37最后一次取款的时间为5.37年。
3．租入设备的年金现值14762（元），低于买价。
租入好。
4．乙方案的现值9.942万元，低于甲方案。
乙方案好。
5．40001000(P/F,3%,2)1750(P/F,3%,6)F(P/F,3%,10)F2140.12第五年末应还款2140.12万元。
6．（1）债券价值4(P/A,5%,6)100(P/F,5%,6)20.3074.6294.92（元）（2）2022年7月1日债券价值4(P/A,6%,4)100(P/F,6%,4)13.8679.2193.07（元）（3）4(P/F,i/2,1)104(P/F,i/2,2)97i12%时，4(P/F,6%,1)104(P/F,6%,2)3.7792.5696.33i10%时，4(P/F,5%,1)104(P/F,5%,2)3.8194.3398.14利用内插法：(i10%)/(12%10%)(98.1497)/(98.1496.33)解得i11.26%7．第三种状态估价不正确，应为12.79元。
《公司理财精要》课后习题及答案13
(22%－Rf )/1.8 = (20.44%－Rf )/1.6 稍加计算，我们就会发现无风险报酬必须是8%：
22%－Rf = (20.44%－Rf)×(1.8/1.6) 22%－20.44%×1.125 = Rf－Rf×1.125
Rf = 8% 13.4 由于市场的期望报酬率是16%，因而市场风险溢酬为：16%－8% = 8%（无风险报酬率是8%）。第一只股票的 贝塔系数是0.70，所以它的期望报酬率是：8% + 0.70×8% = 13.6%。 对于第二只股票而言，风险溢酬是：24%－8% = 16%，比市场风险溢酬大两倍，因此，贝塔系数必定正好等于2。我 们可以用CAPM来加以证实：
股票A 0.07 0.13
状况发生时的报酬率
股票B 0.15 0.03
股票C
0.33 －0.06
a. 这3只股票所组成的等权投资组合的期望报酬率是多少？ b. 一个在股票A和股票B上各投资20%、在股票C上投资60%的投资组合的方差是多少？ 10. 报酬率和标准差 考虑下列信息：
经济状况
极好 好 差 极差
证券
Cooley公司 Moyer公司
贝塔系数
1.8 1.6
期望报酬率（%）
22.00 20.44
如果无风险报酬率是7%，这些证券有没有被正确定价？如果它们被正确定价，无风险报酬率应该是多少？ 13.4 CAPM 假设无风险报酬率是8%，市场的期望报酬率是16%。如果某一特定股票的贝塔系数是0.7，根据CAPM， 该股票的期望报酬率是多少？如果另一只股票的期望报酬率是24%，它的贝塔系数是多少？
发生概率
0.15 0.45 0.35 0.05
股票A
0.30 0.12 0.01 －0.06
公司财务,第十版,课后答案
公司财务,第十版,课后答案CHAPTER 2FINANCIAL STATEMENTS AND CASH FLOWAnswers to Concepts Review and Critical Thinking Questions1.True. Every asset can be converted to cash at some price. However, when we are referring to a liquidasset, the added assumption that the asset can be quickly converted to cash at or near market value is important.2.The recognition and matching principles in financial accounting call for revenues, and the costsassociated with producing those revenues, to be “booked” when the revenue pro cess is essentially complete, not necessarily when the cash is collected or bills are paid. Note that this way is not necessarily correct; it’s the way accountants have chosen to do it.3.The bottom line number shows the change in the cash balance on the balance sheet. As such, it is nota useful number for analyzing a company.4. The major difference is the treatment of interest expense. The accounting statement of cash flowstreats interest as an operating cash flow, while the financial cash flows treat interest as a financing cash flow. The logic of the accounting statement of cash flows is that since interest appears on the income statement, which shows the operations for the period, it is an operating cash flow. In reality, interest is a financing e xpense, which results from the company’s choice of debt and equity. We will have more to say about this in a later chapter. When comparing the two cash flow statements, the financial statement of cash flows is a more appropriate measureof the company’s pe rformance because of its treatment of interest.5.Market values can never be negative. Imagine a share of stock selling for –$20. This would meanthat if you placed an order for 100 shares, you would get the stock along with a check for $2,000.How many shares do you want to buy? More generally, because of corporate and individual bankruptcy laws, net worth for a person or a corporation cannot be negative, implying that liabilities cannot exceed assets in market value.6.For a successful company that is rapidly expanding, for example, capital outlays will be large,possibly leading to negative cash flow from assets. In general, what matters is whether the money is spent wisely, not whether cash flow from assets is positive or negative.7.It’s probably not a good sign for an established company to have negative cash flow from operations,but it would be fairly ordinary for a start-up, so it depends.8.For example, if a company were to become more efficient in inventory management, the amount ofinventory needed would decline. The same might be true if the company becomes better at collecting its receivables. In general, anything that leads to a decline in ending NWC relative to beginning would have this effect. Negative net capital spending would mean more long-lived assets were liquidated than purchased.9.If a company raises more money from selling stock than it pays in dividends in a particular period,its cash flow to stockholders will be negative. If a company borrows more than it pays in interest and principal, its cash flowto creditors will be negative.10.The adjustments discussed were purely accounting changes; they had no cash flow or market valueconsequences unless the new accounting information caused stockholders to revalue the derivatives. Solutions to Questions and ProblemsNOTE: All end-of-chapter problems were solved using a spreadsheet. Many problems require multiple steps. Due to space and readability constraints, when these intermediate steps are included in this solutions manual, rounding may appear to have occurred. However, the final answer for each problem is found without rounding during any step in the problem.Basic1.To find owners’ equity, we must construct a balance sheet as follows:Balance SheetCA $ 5,700 CL $ 4,400NFA 27,000 LTD 12,900OE ??TA $32,700 TL & OE $32,700We know that total liabilities and owners’ equity (TL & OE) must equal total assets of $32,700. We also know that TL & OE is equal to current liabilities plus long-term debt plus owner’s equity, so owner’s equity is:O E = $32,700 –12,900 – 4,400 = $15,400N WC = CA – CL = $5,700 – 4,400 = $1,3002. The income statement for the company is:Income StatementSales $387,000Costs 175,000Depreciation 40,000EBIT $172,000Interest 21,000EBT $151,000Taxes 52,850Net income $ 98,150One equation for net income is:Net income = Dividends + Addition to retained earningsRearranging, we get:Addition to retained earnings = Net income – DividendsAddition to retained earnings = $98,150 – 30,000Addition to retained earnings = $68,1503.To find the book value of current assets, we use: NWC = CA – CL. Rearranging to solve for currentassets, we get:CA = NWC + CL = $800,000 + 2,400,000 = $3,200,000The market value of current assets and net fixed assets is given, so:Book value CA = $3,200,000 Market value CA = $2,600,000 Book value NFA = $5,200,000 Market value NFA = $6,500,000 Book value assets = $8,400,000 Market value assets = $9,100,0004.Taxes = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($273,000 – 100,000)Taxes = $89,720The average tax rate is the total tax paid divided by net income, so:Average tax rate = $89,720 / $273,000Average tax rate = 32.86%The marginal tax rate is the tax rate on the next $1 ofearnings, so the marginal tax rate = 39%.5.To calculate OCF, we first need the income statement:Income StatementSales $18,700Costs 10,300Depreciation 1,900EBIT $6,500Interest 1,250Taxable income $5,250Taxes 2,100Net income $3,150OCF = EBIT + Depreciation – TaxesOCF = $6,500 + 1,900 – 2,100OCF = $6,300/doc/a95a227710a6f524cdbf8525.ht ml capital spending = NFA end– NFA beg + Depreciation Net capital spending = $1,690,000 – 1,420,000 + 145,000Net capital spending = $415,0007.The long-term debt account will increase by $35 million, the amount of the new long-term debt issue.Since the company sold 10 million new shares of stock with a $1 par value, the common stock account will increase by $10 million. The capital surplus account will increase by $48 million, the value of the new stock sold above its par value. Since the company had a net income of $9 million, and paid $2 million in dividends, the addition to retained earnings was $7 million, which will increase the accumulated retained earnings account. So, the new long-term debt and stockholders’ equity portion of the balance sheet will be:Long-term debt $ 100,000,000Total long-term debt $ 100,000,000Shareholders equityPreferred stock $ 4,000,000Common stock ($1 par value) 25,000,000Accumulated retained earnings 142,000,000Capital surplus 93,000,000Total equity $ 264,000,000Total Liabilities & Equity $ 364,000,0008.Cash flow to creditors = Interest paid – Net new borrowingCash flow to creditors = $127,000 – (LTD end– LTD beg)Cash flow to creditors = $127,000 – ($1,520,000 – 1,450,000) Cash flow to creditors = $127,000 – 70,000Cash flow to creditors = $57,0009. Cash flow to stockholders = Dividends paid –Net new equityCash flow to stockholders = $275,000 –[(Common end + APIS end) – (Common beg + APIS beg)]Cash flow to stockholders = $275,000 –[($525,000 + 3,700,000) – ($490,000 + 3,400,000)]Cash flow to stockholders = $275,000 –($4,225,000 –3,890,000)Cash flow to stockholders = –$60,000Note, APIS is the additional paid-in surplus.10. Cash flow from assets = Cash flow to creditors + Cash flow to stockholders= $57,000 – 60,000= –$3,000Cash flow from assets = OCF – Change in NWC – Net capital spending–$3,000 = OCF – (–$87,000) – 945,000OCF = $855,000Operating cash flow = –$3,000 – 87,000 + 945,000Operating cash flow = $855,000Intermediate11. a.The accounting statement of cash flows explains the change in cash during the year. Theaccounting statement of cash flows will be:Statement of cash flowsOperationsNet income $95Depreciation 90Changes in other current assets (5)Accounts payable 10Total cash flow from operations $190Investing activitiesAcquisition of fixed assets $(110)Total cash flow from investing activities $(110)Financing activitiesProceeds of long-term debt $5Dividends (75)Total cash flow from financing activities ($70)Change in cash (on balance sheet) $10b.Change in NWC = NWC end– NWC beg= (CA end– CL end) – (CA beg– CL beg)= [($65 + 170) – 125] – [($55 + 165) – 115)= $110 – 105= $5c.To find the cash flow generated by the firm’s assets, we need the operating cash flow, and thecapital spending. So, calculating each of these, we find:Operating cash flowNet income $95Depreciation 90Operating cash flow $185Note that we can calculate OCF in this manner since there are no taxes.Capital spendingEnding fixed assets $390Beginning fixed assets (370)Depreciation 90Capital spending $110Now we can calculate the cash flow generated by the firm’s assets, which is:Cash flow from assetsOperating cash flow $185Capital spending (110)Change in NWC (5)Cash flow from assets $ 7012.With the information provided, the cash flows from the firm are the capital spending and the changein net working capital, so:Cash flows from the firmCapital spending $(21,000)Additions to NWC (1,900)Cash flows from the firm $(22,900)And the cash flows to the investors of the firm are:Cash flows to investors of the firmSale of long-term debt (17,000)Sale of common stock (4,000)Dividends paid 14,500Cash flows to investors of the firm $(6,500)13. a. The interest expense for the company is the amount of debt times the interest rate on the debt.So, the income statement for the company is:Income StatementSales $1,060,000Cost of goods sold 525,000Selling costs 215,000Depreciation 130,000EBIT $190,000Interest 56,000Taxable income $134,000Taxes 46,900Net income $ 87,100b. And the operating cash flow is:OCF = EBIT + Depreciation – TaxesOCF = $190,000 + 130,000 – 46,900OCF = $273,10014.To find the OCF, we first calculate net income.Income StatementSales $185,000Costs 98,000Depreciation 16,500Other expenses 6,700EBIT $63,800Interest 9,000Taxable income $54,800Taxes 19,180Net income $35,620Dividends $9,500Additions to RE $26,120a.OCF = EBIT + Depreciation – TaxesOCF = $63,800 + 16,500 – 19,180OCF = $61,120b.CFC = Interest – Net new LTDCFC = $9,000 – (–$7,100)CFC = $16,100Note that the net new long-term debt is negative because the company repaid part of its long-term debt.c.CFS = Dividends – Net new equityCFS = $9,500 – 7,550CFS = $1,950d.We know that CFA = CFC + CFS, so:CFA = $16,100 + 1,950 = $18,050CFA is also equal to OCF – Net capital spending – Change in NWC. We already know OCF.Net capital spending is equal to:Net capital spending = Increase in NFA + DepreciationNet capital spending = $26,100 + 16,500Net capital spending = $42,600Now we can use:CFA = OCF – Net capital spending – Change in NWC$18,050 = $61,120 – 42,600 – Change in NWC.Solving for the change in NWC gives $470, meaning the company increased its NWC by $470.15.The solution to this question works the income statement backwards. Starting at the bottom:Net income = Dividends + Addition to ret. earningsNet income = $1,570 + 4,900Net income = $6,470Now, looking at the income statement:EBT –(EBT × Tax rate) = Net incomeRecognize that EBT × tax rate is simply the calculation for taxes. Solving this for EBT yields:EBT = NI / (1– Tax rate)EBT = $6,470 / (1 – .35)EBT = $9,953.85Now we can calculate:EBIT = EBT + InterestEBIT = $9,953.85 + 1,840EBIT = $11,793.85The last step is to use:EBIT = Sales – Costs – Depreciation$11,793.85 = $41,000 – 26,400 – DepreciationDepreciation = $2,806.1516.The market value of shareholders’ equity cannot be negative. A negative market value in this casewould imply that the company would pay you to own the stock. The market value of shareholders’ equity can be stated as: Shareholders’ equity = Max [(TA – TL), 0]. So, if TA is $12,400, equity is equal to $1,500, and if TA is $9,600, equity is equal to $0. We should note here that while the market value of equity cannot be negative, the book value of share holders’ equity can be negative. 17. a. Taxes Growth = 0.15($50,000) + 0.25($25,000) + 0.34($86,000 – 75,000) = $17,490Taxes Income = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($235,000)+ 0.34($8,600,000 – 335,000)= $2,924,000b. Each firm has a marginal tax rate of 34% on the next $10,000 of taxable income, despite theirdifferent average tax rates, so both firms will pay an additional $3,400 in taxes.18.Income StatementSales $630,000COGS 470,000A&S expenses 95,000Depreciation 140,000EBIT ($75,000)Interest 70,000Taxable income ($145,000)Taxes (35%) 0/doc/a95a227710a6f524cdbf8525.ht ml income ($145,000)b.OCF = EBIT + Depreciation – TaxesOCF = ($75,000) + 140,000 – 0OCF = $65,000/doc/a95a227710a6f524cdbf8525.ht ml income was negative because of the tax deductibility of depreciation and interest expense.However, the actual cash flow from operations was positive because depreciation is a non-cash expense and interest is a financing expense, not an operating expense.19. A firm can still pay out dividends if net income is negative; it just has to be sure there is sufficientcash flow to make the dividend payments.Change in NWC = Net capital spending = Net new equity = 0. (Given)Cash flow from assets = OCF – Change in NWC – Net capitalspendingCash flow from assets = $65,000 – 0 – 0 = $65,000Cash flow to stockholders = Dividends – Net new equityCash flow to stockholders = $34,000 – 0 = $34,000Cash flow to creditors = Cash flow from assets – Cash flow to stockholdersCash flow to creditors = $65,000 – 34,000Cash flow to creditors = $31,000Cash flow to creditors is also:Cash flow to creditors = Interest – Net new LTDSo:Net new LTD = Interest – Cash flow to creditorsNet new LTD = $70,000 – 31,000Net new LTD = $39,00020. a.The income statement is:Income StatementSales $19,900Cost of good sold 14,200Depreciation 2,700EBIT $ 3,000Interest 670Taxable income $ 2,330Taxes 932Net income $1,398b.OCF = EBIT + Depreciation – TaxesOCF = $3,000 + 2,700 – 932OCF = $4,768c.Change in NWC = NWC end– NWC beg= (CA end– CL end) – (CA beg– CL beg)= ($5,135 – 2,535) – ($4,420 – 2,470)= $2,600 – 1,950 = $650Net capital spending = NFA end– NFA beg + Depreciation = $16,770 – 15,340 + 2,700= $4,130CFA = OCF – Change in NWC – Net capital spending= $4,768 – 650 – 4,130= –$12The cash flow from assets can be positive or negative, since it represents whether the firm raised funds or distributed funds on a net basis. In this problem, even though net income and OCF are positive, the firm invested heavily in both fixed assets and net working capital; it had to raise a net $12 in funds from its stockholders and creditors to make these investments.d.Cash flow to creditors = Interest – Net new LTD= $670 – 0= $670Cash flow to stockholders = Cash flow from assets – Cash flow to creditors= –$12 – 670= –$682We can also calculate the cash flow to stockholders as:Cash flow to stockholders = Dividends – Net new equitySolving for net new equity, we get:Net new equity = $650 – (–682)= $1,332The firm had positive earnings in an accounting sense (NI > 0) and had positive cash flow from operations. The firm invested $650 in new net working capital and $4,130 in new fixed assets.The firm had to raise $12 from its stakeholders to support this new investment. It accomplished this by raising $1,332 in theform of new equity. After paying out $650 of this in the form of dividends to shareholders and $670 in the form of interest to creditors, $12 was left to meet the firm’s cash flow needs for investment.21. a.Total assets 2011 = $936 + 4,176 = $5,112Total liabilities 2011 = $382 + 2,160 = $2,542Owners’ equity 2011 = $5,112 – 2,542 = $2,570Total assets 2012 = $1,015 + 4,896 = $5,911Total liabilities 2012 = $416 + 2,477 = $2,893Owners’ equity 2012 = $5,911 – 2,893 = $3,018b.NWC 2011 = CA11 – CL11 = $936 – 382 = $554NWC 2012 = CA12 – CL12 = $1,015 – 416 = $599Change in NWC = NWC12 – NWC11 = $599 – 554 = $45c.We can calculate net capital spending as:Net capital spending = Net fixed assets 2012 –Net fixed assets 2011 + DepreciationNet capital spending = $4,896 – 4,176 + 1,150Net capital spending = $1,870So, the company had a net capital spending cash flow of $1,870. We also know that net capital spending is:Net capital spending = Fixed assets bought –Fixed assets sold$1,870 = $2,160 – Fixed assets soldFixed assets sold = $2,160 – 1,870 = $290To calculate the cash flow from assets, we must first calculate the operating cash flow. The operating cash flow is calculated as follows (you can also prepare a traditional income statement): EBIT = Sales – Costs – DepreciationEBIT = $12,380 – 5,776 – 1,150EBIT = $5,454EBT = EBIT – InterestEBT = $5,454 – 314EBT = $5,140Taxes = EBT ? .40Taxes = $5,140 ? .40Taxes = $2,056OCF = EBIT + Depreciation – TaxesOCF = $5,454 + 1,150 – 2,056OCF = $4,548Cash flow from assets = OCF – Change in NWC – Net capital spending.Cash flow from assets = $4,548 – 45 – 1,870Cash flow from assets = $2,633/doc/a95a227710a6f524cdbf8525.ht ml new borrowing = LTD12 – LTD11Net new borrowing = $2,477 – 2,160Net new borrowing = $317Cash flow to creditors = Interest – Net new LTDCash flow to creditors = $314 – 317Cash flow to creditors = –$3Net new borrowing = $317 = Debt issued – Debt retiredDebt retired = $432 – 317 = $11522.Balance sheet as of Dec. 31, 2011Cash $4,109 Accounts payable $4,316 Accounts receivable 5,439 Notes payable 794 Inventory 9,670 Current liabilities $5,110 Current assets $19,218Long-term debt $13,460 Net fixed assets $34,455 Owners' equity 35,103 Total assets $53,673 Total liab. & equity $53,673 Balance sheet as of Dec. 31, 2012Cash $5,203 Accounts payable $4,185Accounts receivable 6,127 Notes payable 746Inventory 9,938 Current liabilities $4,931Current assets $21,268Long-term debt $16,050 Net fixed assets $35,277 Owners' equity 35,564Total assets Total liab. & equity2011 Income Statement 2012 Income Statement Sales $7,835.00Sales $8,409.00 COGS 2,696.00COGS 3,060.00 Other expenses 639.00Other expenses 534.00 Depreciation 1,125.00Depreciation 1,126.00 EBIT $3,375.00EBIT $3,689.00 Interest 525.00Interest 603.00 EBT $2,850.00EBT $3,086.00 Taxes 969.00Taxes 1,049.24 Net income $1,881.00Net income $2,036.76 Dividends $956.00Dividends $1,051.00 Additions to RE 925.00Additions to RE 985.76 23.OCF = EBIT + Depreciation –TaxesOCF = $3,689 + 1,126 – 1,049.24OCF = $3,765.76Change in NWC = NWC end– NWC beg = (CA – CL) end– (CA – CL) begChange in NWC = ($21,268 – 4,931) – ($19,218 – 5,110)Change in NWC = $2,229Net capital spending = NFA end– NFA beg+ DepreciationNet capital spending = $35,277 – 34,455 + 1,126Net capital spending = $1,948Cash flow from assets = OCF – Change in NWC – Net capital spendingCash flow from assets = $3,765.76 – 2,229 – 1,948Cash flow from assets = –$411.24Cash flow to creditors = Interest – Net new LTDNet new LTD = LTD end– LTD begCash flow to creditors = $603 – ($16,050 – 13,460)Cash flow to creditors = –$1,987Net new equity = Common stock end– Common stock beg Common stock + Retained earnings = Total owners’ equity Net new equity = (OE – RE) end– (OE – RE) begNet new equity = OE end– OE beg + RE beg– RE endRE end= RE beg+ Additions to RENet new equity = OE end–OE beg+ RE beg–(RE beg + Additions to RE)= OE end– OE beg– Additions to RENet new equity = $35,564 – 35,103 – 985.76 = –$524.76Cash flow to stockholders = Dividends – Net new equityCash flow to stockholders = $1,051– (–$524.76)Cash flow to stockholders = $1,575.76As a check, cash flow from assets is –$411.24Cash flow from assets = Cash flow from creditors + Cash flow to stockholdersCash flow from assets = –$1,987 + 1,575.76Cash flow from assets = –$411.24Challenge24.We will begin by calculating the operating cash flow. First, we need the EBIT, which can becalculated as:EBIT = Net income + Current taxes + Deferred taxes + InterestEBIT = $173 + 98 + 19 + 48EBIT = $338Now we can calculate the operating cash flow as:Operating cash flowEarnings before interest and taxes $338Depreciation 94Current taxes (98)Operating cash flow $334The cash flow from assets is found in the investing activities portion of the accounting statement of cash flows, so: Cash flow from assetsAcquisition of fixed assets $215Sale of fixed assets (23)Capital spending $192The net working capital cash flows are all found in the operations cash flow section of the accounting statement of cash flows. However, instead of calculating the net working capital cash flows as the change in net working capital, we must calculate each item individually. Doing so, we find:Net working capital cash flowCash $14Accounts receivable 18Inventories (22)Accounts payable (17)Accrued expenses 9Notes payable (6)Other (3)NWC cash flow ($7)Except for the interest expense and notes payable, the cash flow to creditors is found in the financing activities of the accounting statement of cash flows. The interest expense from the income statement is given, so:Cash flow to creditorsInterest $48Retirement of debt 162Debt service $210Proceeds from sale of long-term debt (116)Total $94And we can find the cash flow to stockholders in the financing section of the accounting statement of cash flows. The cash flow to stockholders was:Cash flow to stockholdersDividends $ 86Repurchase of stock 13Cash to stockholders $ 99Proceeds from new stock issue (44)Total $ 55/doc/a95a227710a6f524cdbf8525.ht ml capital spending = NFA end– NFA beg + Depreciation = (NFA end– NFA beg) + (Depreciation + AD beg) – AD beg = (NFA end– NFA beg)+ AD end– AD beg= (NFA end + AD end) – (NFA beg + AD beg) = FA end– FA beg26. a.The tax bubble causes average tax rates to catch up to marginal tax rates, thus eliminating thetax advantage of low marginal rates for high income corporations.b.Assuming a taxable income of $335,000, the taxes will be:Taxes = 0.15($50K) + 0.25($25K) + 0.34($25K) + 0.39($235K) = $113.9KAverage tax rate = $113.9K / $335K = 34%The marginal tax rate on the next dollar of income is 34 percent.For corporate taxable income levels of $335K to $10M,average tax rates are equal to marginal tax rates.Taxes = 0.34($10M) + 0.35($5M) + 0.38($3.333M) = $6,416,667Average tax rate = $6,416,667 / $18,333,334 = 35%The marginal tax rate on the next dollar of income is 35 percent. For corporate taxable income levels over $18,333,334, average tax rates are again equal to marginal tax rates.c.Taxes = 0.34($200K) = $68K = 0.15($50K) + 0.25($25K) +0.34($25K) + X($100K);X($100K) = $68K – 22.25K = $45.75KX = $45.75K / $100KX = 45.75%。
Principles of Corporate Finance 10th Edition homework answers公司财务原理第十版答案1
1 1 PV C t r r (1 r) 1 1 $2,000,000 C 15 0.08 0.08 (1.08) 1 1 $233,659 C $2,000,000 0.08 0.08 (1.08)15
NPV $370,000 $200,000 $420,000 $30,000 1.05 (1.05)2
at 10% NPV $370,000
$200,000 420,000 -$4,710.74 1.10 (1.10)2 $200,000 420,000 $35,028.36 1.15 (1.15)2
1 1 PV $1 billion $10.203 billion (0.077)(20 ) 0.077 0.077 e
This result is greater than the answer in Part (c) because the endowment is now earning interest during the entire year.
at 5%
NPV $370,000
35000 30000 25000 坐标轴标题 20000 15000 10000 5000 0 -5000 -10000 5% 10% 坐标轴标题 15% 系列2
25.
a. b. c. d.
PV = $1 billion/0.08 = $12.5 billion PV = $1 billion/(0.08 – 0.04) = $25.0 billion
(Let NPV=0, we can find that r=9.30%)
40000 30000 20000 坐标轴标题 10000 0 -10000 -20000 -30000 -40000 坐标轴标题 5% 10% 15% 系列2
《公司理财》课后习题与答案
《公司理财》考试范围：第3~7章，第13章，第16~19章，其中第16章和18章为较重点章节。
书上例题比较重要，大家记得多多动手练练。
PS：书中课后例题不出，大家可以当习题练练~考试题型：1.单选题10分 2.判断题10分 3.证明题10分 4.计算分析题60分 5.论述题10分注：第13章没有答案第一章1.在所有权形式的公司中,股东是公司的所有者。
股东选举公司的董事会,董事会任命该公司的管理层。
企业的所有权和控制权分离的组织形式是导致的代理关系存在的主要原因。
管理者可能追求自身或别人的利益最大化,而不是股东的利益最大化。
在这种环境下,他们可能因为目标不一致而存在代理问题。
2.非营利公司经常追求社会或政治任务等各种目标。
非营利公司财务管理的目标是获取并有效使用资金以最大限度地实现组织的社会使命。
3.这句话是不正确的。
管理者实施财务管理的目标就是最大化现有股票的每股价值，当前的股票价值反映了短期和长期的风险、时间以及未来现金流量。
4.有两种结论。
一种极端,在市场经济中所有的东西都被定价。
因此所有目标都有一个最优水平，包括避免不道德或非法的行为，股票价值最大化。
另一种极端,我们可以认为这是非经济现象,最好的处理方式是通过政治手段。
一个经典的思考问题给出了这种争论的答案:公司估计提高某种产品安全性的成本是30美元万。
然而,该公司认为提高产品的安全性只会节省20美元万。
请问公司应该怎么做呢”5.财务管理的目标都是相同的,但实现目标的最好方式可能是不同的,因为不同的国家有不同的社会、政治环境和经济制度。
6.管理层的目标是最大化股东现有股票的每股价值。
如果管理层认为能提高公司利润，使股价超过35美元,那么他们应该展开对恶意收购的斗争。
如果管理层认为该投标人或其它未知的投标人将支付超过每股35美元的价格收购公司,那么他们也应该展开斗争。
然而,如果管理层不能增加企业的价值,并且没有其他更高的投标价格,那么管理层不是在为股东的最大化权益行事。
公司理财精要版参考答案
公司理财精要版参考答案公司理财精要版参考答案在当今竞争激烈的商业环境中，公司理财是确保企业可持续发展的关键要素之一。
良好的财务管理和有效的资金运作可以帮助企业实现利润最大化，并提供稳定的财务基础。
本文将探讨公司理财的精要版参考答案，以帮助企业管理者更好地理解和应用这一概念。
1. 财务规划与预算控制公司理财的核心是财务规划和预算控制。
财务规划是指根据企业的长期战略目标和短期业务需求，制定合理的财务目标和计划。
预算控制则是通过制定详细的预算和监控实际支出，确保企业在财务方面的稳定和可持续发展。
企业管理者应该根据市场环境和经济状况，合理制定财务目标和预算，并根据实际情况及时调整。
2. 资金管理与风险控制资金管理是公司理财的重要组成部分。
企业应该合理规划和运用资金，确保流动性和盈利能力。
资金管理包括现金流量管理、资本结构管理和投资决策等。
同时，风险控制也是资金管理的重要内容。
企业应该通过风险评估和控制措施，降低经营风险，保护企业的财务安全。
3. 资本运作与融资策略资本运作是公司理财的重要环节。
企业可以通过资本运作来优化资本结构，提高资金利用效率。
资本运作包括股权融资、债务融资和资产重组等。
企业管理者应该根据企业的实际情况和市场需求，选择适合的融资策略，并合理运用各种融资工具。
4. 利润管理与税务筹划利润管理是公司理财的核心目标之一。
企业应该通过成本控制、价格管理和销售策略等手段，提高利润水平。
同时，税务筹划也是利润管理的重要组成部分。
企业应该合法合规地进行税务筹划，降低税务成本，提高税务效益。
5. 绩效评估与报告披露绩效评估是公司理财的重要环节。
企业应该建立科学合理的绩效评估体系，对企业的财务状况和经营业绩进行定期评估和报告。
同时，企业还应该及时披露财务信息，提高透明度和信任度，为投资者和利益相关者提供准确可靠的财务数据。
综上所述，公司理财是企业管理中不可或缺的一部分。
良好的财务管理和有效的资金运作可以帮助企业实现利润最大化，并提供稳定的财务基础。
Principles of Corporate Finance 英文第十版习题解答Chap010
CHAPTER 10Project AnalysisAnswers to Problem Sets1. a. Falseb. Truec. True2. a. Cash-flow forecasts overstated.b. One project proposal may be ranked below another simply because cashflows are based on different forecasts.c. Project proposals may not consider strategic -alternatives.3. a. Analysis of how project profitability and NPV change if differentassumptions are made about sales, cost, and other key variables.b. Project NPV is recalculated by changing several inputs to new, butconsistent, values.c. Determines the level of future sales at which project profitability or NPVequals zero.d. An extension of sensitivity analysis that explores all possible outcomesand weights each by its probability.e. A graphical technique for displaying possible future events and decisionstaken in response to those events.f. Option to modify a project at a future date.g. The additional present value created by the -option to bail out of a project,and recover part of the initial investment, if the project performs poorly.h. The additional present value created by the -option to invest more andexpand output, if a project performs well.4. a. Falseb. Truec. Trued. Truee. Falsef. True5. a. Describe how project cash flow depends on the underlying variables.b. Specify probability distributions for forecast -errors for these cash flows.c. Draw from the probability distributions to -simulate the cash flows.6. a. Trueb. Truec. Falsed. False7. Adding a fudge factor to the discount rate pushes project analysts to submit moreoptimistic forecasts.8. We assume that the idea for a new obfuscator machine originates with a plantmanager in the Deconstruction Division. (Keep in mind however that, in addition to bottom-up proposals, such as the obfuscator machine proposal, top-downproposals also originate with divisional managers and senior management.)Other steps in the capital budgeting process include the following:∙Many large firms begin the process with forecasts of economic variables, such as inflation and GDP growth, as well as variables of particular interest tothe industry, such as prices of raw materials and industry sales projections.∙The plant manager, often in consultation with the division manager, prepares the proposal in the form of an appropriation request; the appropriation requesttypically includes an explanation of the need for the expenditure, detailedforecasts, discounted cash flow analysis and other supporting detail such assensitivity analysis.∙ Depending on the size of the investment, the appropriation request isreviewed and approved by the divisional manager, senior management or, in the case of major expenditures, the board of directors.∙ The forecast expenditure is included as part of the annual capital budget, which is approved by top management and the board of directors.∙ Major cost over-runs typically require a supplementary appropriation request, which includes an explanation of the reason why the additional expenditure was not anticipated.∙ When the machine is finally up and running, most firms conduct a postaudit to identify problems and to assess forecast accuracy; the main purpose of the postaudit is to improve the process in the future. 9.a.32F (1.10)0.08)-(1$4,000(1.10)0.08)-(1$5,0001.100.08)-(1$6,000$9,000NP V ⨯+⨯+⨯+-= = $2,584.67=⨯+-=0.100.08)-(1$1,800$9,000NPV G $7,560b.=+++-=32F (1.18)$4,000(1.18)$5,0001.18$6,000$9,000NP V $2,110.19 =+-=0.18$1,800$9,000NPV G $1,000c.The 18% discount rate would give an approximation to the correct NPVs for projects with all (or most) of the inflows in the first year.The present value of $1 to be received one year from now, discounted at 18% is: $0.8475The present value of $1 × (1 – 0.08) (that is, $0.92) to be received one year from now, discounted at 10% is: $0.8364The former calculation overstates the correct answer by approximately 1.3%. However, for cash flows five or ten years in to the future, discounting by 18% understates the correct present value by approximately 23% and 46%, respectively. The error increasessubstantially because the incorrect factor (i.e., 1.18) is compounded, causing the denominator of the present value calculation to be greatly overstated so that the present value is greatly understated.10.Year 0 Years 1-10Investment ¥15 B1. Revenue ¥44.000 B2. Variable Cost 39.600 B3. Fixed Cost 2.000 B4. Depreciation 1.500 B5. Pre-tax Profit ¥0.900 B6. Tax @ 50%0.450 B 7. Net Operating Profit ¥0.450 B 8. Operating Cash Flow¥1.950 B 11.The spreadsheets show the following results: NPVPessimistic Expected OptimisticMarket Size -1.17 3.43 8.04 Market Share -10.39 3.43 17.26 Unit Price -19.61 3.43 11.11 Unit Variable Cost -11.93 3.43 11.11 Fixed Cost -2.71 3.43 9.58The principal uncertainties are market share, unit price, and unit variable cost.12.a.Year 0Years 1-10Investment ¥30 B 1. Revenue ¥37.500 B 2. Variable Cost 26.000 3. Fixed Cost 3.000 4. Depreciation3.000 5. Pre-tax Profit (1-2-3-4) ¥5.500 6. Tax2.750 7. Net Operating Profit (5-6) ¥2.750 8. Operating Cash Flow (4+7) 5.750 NPV = + ¥5.33 B?.02B1.10?.950B ?5B NP V 101t t-=+-=∑=b.Inflows OutflowsUnit Sales Revenues Investment V. Costs F. Cost TaxesPV PV NPV (000‟s) Yrs 1-10 Yr 0 Yr 1-10 Yr 1-10 Yr 1-10 Inflows Outflows 0 0.00 30.00 0.00 3.00 -3.00 0.00 -30.00 -30.00 100 37.50 30.00 26.00 3.00 2.75 230.42 -225.09 5.33 200 75.00 30.00 52.00 3.008.50460.84-420.1840.66Note that the break-even point can be found algebraically as follows:NPV = -Investment + [(PVA 10/10%) ⨯ (t ⨯ Depreciation)] +[Quantity ⨯ (Price – V.Cost) – F.Cost]⨯(1 – t)⨯(PVA 10/10%)Set NPV equal to zero and solve for Q:Proof:1. Revenue ¥31.84 B2. Variable Cost 22.083. Fixed Cost 3.004. Depreciation 3.005. Pre-tax Profit ¥3.76 B6. Tax1.88 7. Net Profit¥1.88 8. Operating Cash Flow¥4.880.013029.9930(1.10)4.88NP V 101t t-=-=-=∑=VP Ft)(1V)(P )(P VA t)D (P VA I Q 10/10%10/10%-+-⨯-⨯⨯⨯-=260,000375,0000003,000,000,0.50260,000)(375,0006.1445676599,216,850,,00030,000,000-+⨯-⨯-=84,91126,08758,824115,0000003,000,000,353,313,34120,783,149=+=+=)rounding to due difference (c. The break-even point is the point where the present value of the cashflows, including the opportunity cost of capital, yields a zero NPV.d. To find the level of costs at which the project would earn zero profit, writethe equation for net profit, set net profit equal to zero, and solve forvariable costs:Net Profit = (R – VC – FC - D) ⨯ (1 – t)0 = (37.5 – VC – 3.0 – 1.5) ⨯ 0.50VC = 33.0This will yield zero profit.Next, find the level of costs at which the project would have zero NPV.Using the data in Table 11.1, the equivalent annual cash flow yielding azero NPV would be:¥15 B/PVA10/10% = ¥2.4412 BIf we rewrite the cash flow equation and solve for the variable cost: NCF = [(R – VC – FC – D) ⨯ (1 – t)] + D2.4412 = [(37.5 – VC –3.0 – 1.5) ⨯ 0.50] + 1.5VC = 31.12This will yield NPV = 0, assuming the tax credits can be used elsewhere in the company.e. DOL = 1 + (fixed costs / profit)Fixed costs rise 1.5 due to additional depreciation of the 15 billion yen investment. Profits increase by 0.4 reflecting the lower variable costs.This gives us a DOL = 1 + ((3 + 1.5 + 1.5) / 3.4) = 2.7613.If Rustic replaces now rather than in one year, several things happen:i. It incurs the equivalent annual cost of the $9 million capital investment. ii. It reduces manufacturing costs.For example, for the “Expected” case, analyzing “Sales” we have (all dollar figures in millions): i.The economic life of the new machine is expected to be 10 years, so the equivalent annual cost of the new machine is:$9/5.6502 = $1.59ii.The reduction in manufacturing costs is:0.5 ⨯ $4 = $2.00Thus, the equivalent annual cost savings is:–$1.59 + $2.00 = $0.41Continuing the analysis for the other cases, we find:Equivalent Annual Cost Savings (Millions)Pessimistic Expected OptimisticSales 0.01 0.41 1.21 Manufacturing Cost -0.59 0.41 0.91 Economic Life 0.03 0.41 0.6014. profitoperating ondepreciati cost fixed 1 DOL ++=Operating profits are unchanged in all scenarios, as we have just shifted the nature of the costs.With $33 million in variable costs, DOL 1.53.01.5)(01=++=With $33 million in fixed costs, DOL 12.53.01.5)(331=++=15. a. sales in change %incomeoperating in change %leverage Operating =For a 1% increase in sales, from 100,000 units to 101,000 units:2.5037.5/0.3753/0.075leverage Operating ==b. profit operating ondepreciati cost fixed 1leverage Operating ++=2.53.01.5)(3.01=++=c. salesin change %incomeoperating in change %leverage Operating =For a 1% increase in sales, from 200,000 units to 202,000 units:1.43/7575)-(75.7510.5)/10.5-(10.65leverage Operating ==Invest in full-scale production: NPV = -1000 + (250/0.10)= +$1,500Stop: NPV = $0[ For full-scale production: NPV = -1000 + (75/0.10)= -$250 ]17. Problem requires use of Excel program; answers will vary. 18. a. Timing option b. Expansion option c. Abandonment option d.Production option19.Working from right to left, the following spreadsheet calculates a weighted average NPV of 119 at the start of Phase 3 trials.Weighted NPV Prob. of outcome NPV with abandonment Resulting NPV with 130 investment; r = 9.6% Phase III results PV if successful Probabilityof Phase III success 39 5% 781 781 Blockbuster 1500 80% 59 20% 295 295 Above average 700 80% 21 40% 52 52 Average 300 80% 0 25% 0 -69 Below Average 100 80%10% 0 -106 Dog 40 80%We can calculate the NPV at the initial investment decision as follows:million $25.6(1.096)119.44 18NP V 2=⨯+-=So the investment remains positive.20. Working from right to left, the following spreadsheet shows that the weightedaverage NPV at the start of the Phase 3 trials increases to $146 million with the higher upside PV.Weighted NPV Prob. of outcome NPV with abandonment Resulting NPV with 130investment; r = 9.6% Phase IIIresultsPV if successful Probabilityof Phase III success 119 25% 478 478 Upside1000 80% 26 50% 52 52 Most likely 300 80%25% 0 -69 downside100 80%We can calculate the NPV at the initial investment decision as follows:million $15.3(1.096)146.44 38NP V 2=⨯+-=The project is still positive but NPV has fallen, showing that the extra $20 millioninvestment is not worthwhile. Decreasing the probability of phase III success to 75% results in the following calculations:Weighted NPV Prob. of outcome NPV with abandonment Resulting NPV with 130investment; r = 9.6% Phase IIIresultsPV if successful Probabilityof Phase III success 110 25% 440 440 Upside1000 75% 20 50% 41 41 Most likely 30075% 25% 0 -73 downside100 75%million $9.75(1.096)130.44 38NP V 2=⨯+-= So the R&D proposal is still not worthwhile.21.a.b. Analyze the decision tree by working backwards. If we purchase the piston planeand demand is high:∙ T he NPV at t = 1 of the …Expand‟ branch is:∙ The NPV at t = 1 of the …Continue‟ branch is:Thus, if we purchase the piston plane and demand is high, we should expand further at t = 1. This branch has the highest NPV.c. Continuing the analysis, if we purchase the piston plane and demand is low: ∙ The NPV of the …Continue‟ branch is: ∙ We can now use these results to calculate the NPV of the …Piston‟ branch at t = 0:∙ Similarly for the …Turbo‟ branch, if demand is high, the expected cash flow at t = 1 is:(0.8 ⨯ 960) + (0.2 ⨯ 220) = $812∙ If demand is low, the expected cash flow is:(0.4 ⨯ 930) + (0.6 ⨯ 140) = $456∙ So, for the …Turbo‟ branch, the combined NPV is:$96(1.10)456).4(0812)(0.6(1.10)30).4(0150)(0.6550NP V 2=⨯+⨯+⨯+⨯+-= Therefore, the company should buy the Piston-engine plane today.d. To determine the value of the option to expand, we first compute the NPV withoutthe option to expand:+⨯+⨯+-=(1.10)50).4(0100)(0.6250NPV$52(1.10)100)](0.6220)(0.4)[(0.4180)].2(0410)(0.6)[(0.82=⨯+⨯+⨯+⨯ $4501.10100).2(0800)(0.8150=⨯+⨯+-$3311.10180).2(0410)(0.8=⨯+⨯$1351.10100).6(0220)(0.4=⨯+⨯$1171.10135)(50.4)(0451)(100(0.6)250=+⨯++⨯+-Therefore, the value of the option to expand is: $117 – $52 = $6522. Problem requires use of Crystal Ball software simulation; answers will vary.。
公司财务,第十版,课后答案
e.No, dividend payments should not be treated as incremental cash flows. A firm’s decision to pay or not pay dividends is independent of the decision to accept or reject any given investment project. For this reason, dividends are not an incremental cash flow to a given project. Dividend policy is discussed in more detail in later chapters.
c.No, the research and development costs should not be treated as incremental cash flows. The costs of research and development undertaken on the product during the past three years aresunk costsand should not be included in the evaluation of the project. Decisions made and costs incurred in the past cannot be changed. They should not affect the decision to accept or reject the project.
公司理财精要版第十版课后答案
CHAPTER 18VALUATION AND CAPITAL BUDGETING FOR THE LEVERED FIRM Answers to Concepts Review and Critical Thinking Questions1.APV is equal to the NPV of the project (i.e. the value of the project for an unlevered firm) plus theNPV of financing side effects.2. The WACC is based on a target debt level while the APV is based on the amount of debt.3.FTE uses levered cash flow and other methods use unlevered cash flow.4.The WACC method does not explicitly include the interest cash flows, but it does implicitly includethe interest cost in the WACC. If he insists that the interest payments are explicitly shown, you should use the FTE method.5. You can estimate the unlevered beta from a levered beta. The unlevered beta is the beta of the assetsof the firm; as such, it is a measure of the business risk. Note that the unlevered beta will always be lower than the levered beta (assuming the betas are positive). The difference is due to the leverage of the company. Thus, the second risk factor measured by a levered beta is the financial risk of the company.Solutions to Questions and ProblemsNOTE: All end-of-chapter problems were solved using a spreadsheet. Many problems require multiple steps. Due to space and readability constraints, when these intermediate steps are included in this solutions manual, rounding may appear to have occurred. However, the final answer for each problem is found without rounding during any step in the problem.Basic1. a.The maximum price that the company should be willing to pay for the fleet of cars with all-equity funding is the price that makes the NPV of the transaction equal to zero. The NPV equation for the project is:NPV = –Purchase Price + PV[(1 –t C )(EBTD)] + PV(Depreciation Tax Shield)If we let P equal the purchase price of the fleet, then the NPV is:NPV = –P + (1 – .35)($175,000)PVIFA13%,5 + (.35)(P/5)PVIFA13%,5Setting the NPV equal to zero and solving for the purchase price, we find:0 = –P + (1 – .35)($175,000)PVIFA13%,5 + (.35)(P/5)PVIFA13%,5P = $400,085.06 + (P)(.35/5)PVIFA13%,5P = $400,085.06 + .2462P.7538P = $400,085.06P = $530,761.93b.The adjusted present value (APV) of a project equals the net present value of the project if itwere funded completely by equity plus the net present value of any financing side effects. In this case, the NPV of financing side effects equals the after-tax present value of the cash flows resulting from the firm’s debt, so:APV = NPV(All-Equity) + NPV(Financing Side Effects)So, the NPV of each part of the APV equation is:NPV(All-Equity)NPV = –Purchase Price + PV[(1 – t C )(EBTD)] + PV(Depreciation Tax Shield)The company paid $480,000 for the fleet of cars. Because this fleet will be fully depreciated over five years using the straight-line method, annual depreciation expense equals:Depreciation = $480,000/5Depreciation = $96,000So, the NPV of an all-equity project is:NPV = –$480,000 + (1 – .35)($175,000)PVIFA13%,5 + (.35)($96,000)PVIFA13%,5NPV = $38,264.03NPV(Financing Side Effects)The net present value of financing side effects equals the after-tax present value of cash flows resulting from the firm’s debt, so:NPV = Proceeds – Aftertax PV(Interest Payments) – PV(Principal Payments)Given a known level of debt, debt cash flows should be discounted at the pre-tax cost of debt R B. So, the NPV of the financing side effects are:NPV = $390,000 – (1 – .35)(.08)($390,000)PVIFA8%,5– $390,000/1.085NPV = $43,600.39So, the APV of the project is:APV = NPV(All-Equity) + NPV(Financing Side Effects)APV = $38,264.03 + 43,600.39APV = $81,864.422.The adjusted present value (APV) of a project equals the net present value of the project if it werefunded completely by equity plus the net present value of any financing side effects. In this case, the NPV of financing side effects equals the after-tax present value of the cash flows resulting from the firm’s debt, so:APV = NPV(All-Equity) + NPV(Financing Side Effects)So, the NPV of each part of the APV equation is:NPV(All-Equity)NPV = –Purchase Price + PV[(1 –t C)(EBTD)] + PV(Depreciation Tax Shield)Since the initial investment of $1.7 million will be fully depreciated over four years using thestraight-line method, annual depreciation expense is:Depreciation = $1,700,000/4Depreciation = $425,000NPV = –$1,700,000 + (1 – .30)($595,000)PVIFA13%,4 + (.30)($425,000)PVIFA9.5%,4NPV (All-equity) = –$52,561.35NPV(Financing Side Effects)The net present value of financing side effects equals the aftertax present value of cash flowsresulting from the firm’s debt. So, the NPV of the financing side effects are:NPV = Proceeds(Net of flotation) – Aftertax PV(Interest Payments) – PV(Principal Payments) + PV(Flotation Cost Tax Shield)Given a known level of debt, debt cash flows should be discounted at the pre-tax cost of debt, R B.Since the flotation costs will be amortized over the life of the loan, the annual flotation costs that will be expensed each year are:Annual flotation expense = $45,000/4Annual flotation expense = $11,250NPV = ($1,700,000 – 45,000) – (1 – .30)(.095)($1,700,000)PVIFA9.5%,4– $1,700,000/1.0954 + .30($11,250) PVIFA9.5%,4NPV = $121,072.23So, the APV of the project is:APV = NPV(All-Equity) + NPV(Financing Side Effects)APV = –$52,561.35 + 121,072.23APV = $68,510.883. a.In order to value a firm’s equity using the flow-to-equity approach, discount the cash flowsavailable to equity holders at the cost of the firm’s levered equity. The cash flows to equity holders will be the firm’s net income. Remembering that the company has three stores, we find:Sales $3,900,000COGS 2,010,000G & A costs 1,215,000Interest 123,000EBT $ 552,000Taxes 220,800NI $ 331,200Since this cash flow will remain the same forever, the present value of cash flows available tothe firm’s equity holders is a perpetuity. We can discount at the levered cost of equity, so, thevalue of the company’s equity is:PV(Flow-to-equity) = $331,200 / .19PV(Flow-to-equity) = $1,743,157.89b.The value of a firm is equal to the sum of the market values of its debt and equity, or:V L = B + SWe calculated the value of the company’s equity in part a, so now we need to calculate the value of debt. The company has a debt-to-equity ratio of .40, which can be written algebraically as:B / S = .40We can substitute the value of equity and solve for the value of debt, doing so, we find:B / $1,743,157.89 = .40B = $697,263.16So, the value of the company is:V = $1,743,157.89 + 697,263.16V = $2,440,421.054. a.In order to determine the cost of the firm’s debt, we need to find the yield to maturity on itscurrent bonds. With semiannual coupon payments, the yield to maturity of the company’s bonds is:$1,080 = $35 (PVIFA R%,40) + $1,000(PVIF R%,40)R = .03145, or 3.145%Since the coupon payments are semiannual, the YTM on the bonds is:YTM = 3.145%× 2YTM = 6.29%b.We can use the Capital Asset Pricing Model to find the return on unlevered equity. Accordingto the Capital Asset Pricing Model:R0 = R F+ βUnlevered(R M–R F)R0 = 4% + .85(11% – 4%)R0 = 9.95%Now we can find the cost of levered equity. According to Modigliani-Miller Proposition II with corporate taxesR S = R0 + (B/S)(R0–R B)(1 –t C)R S = .0995 + (.40)(.0995 – .0629)(1 – .34)R S = .1092, or 10.92%c.In a world with corporate taxes, a firm’s weighted average cost of capital is equal to:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SThe problem does not provide either the debt-value ratio or equity-value ratio. However, the firm’s debt-equity ratio is:B/S = .40Solving for B:B = .4SSubstituting this in the debt-value ratio, we get:B/V = .4S / (.4S + S)B/V = .4 / 1.4B/V = .29And the equity-value ratio is one minus the debt-value ratio, or:S/V = 1 – .29S/V = .71So, the WACC for the company is:R WACC = .29(1 – .34)(.0629) + .71(.1092)R WACC = .0898, or 8.98%5. a.The equity beta of a firm financed entirely by equity is equal to its unlevered beta. Since eachfirm has an unlevered beta of 1.10, we can find the equity beta for each. Doing so, we find:North PoleβEquity = [1 + (1 –t C)(B/S)]βUnleveredβEquity = [1 + (1 – .35)($2,900,000/$3,800,000](1.10)βEquity = 1.65South PoleβEquity = [1 + (1 –t C)(B/S)]βUnleveredβEquity = [1 + (1 – .35)($3,800,000/$2,900,000](1.10)βEquity = 2.04b.We can use the Capital Asset Pricing Model to find the required return on each firm’s equity.Doing so, we find:North Pole:R S = R F+ βEquity(R M–R F)R S = 3.20% + 1.65(10.90% – 3.20%)R S = 15.87%South Pole:R S = R F+ βEquity(R M–R F)R S = 3.20% + 2.04(10.90% – 3.20%)R S = 18.88%6. a.If flotation costs are not taken into account, the net present value of a loan equals:NPV Loan = Gross Proceeds – Aftertax present value of interest and principal paymentsNPV Loan = $5,850,000 – .08($5,850,000)(1 – .40)PVIFA8%,10– $5,850,000/1.0810NPV Loan = $1,256,127.24b.The flotation costs of the loan will be:Flotation costs = $5,850,000(.025)Flotation costs = $146,250So, the annual flotation expense will be:Annual flotation expense = $146,250 / 10Annual flotation expense = $14,625If flotation costs are taken into account, the net present value of a loan equals:NPV Loan = Proceeds net of flotation costs – Aftertax present value of interest and principalpayments + Present value of the flotation cost tax shieldNPV Loan = ($5,850,000 – 146,250) – .08($5,850,000)(1 – .40)(PVIFA8%,10)– $5,850,000/1.0810 + $14,625(.40)(PVIFA8%,10)NPV Loan = $1,149,131.217.First we need to find the aftertax value of the revenues minus expenses. The aftertax value is:Aftertax revenue = $3,200,000(1 – .40)Aftertax revenue = $1,920,000Next, we need to find the depreciation tax shield. The depreciation tax shield each year is:Depreciation tax shield = Depreciation(t C)Depreciation tax shield = ($11,400,000 / 6)(.40)Depreciation tax shield = $760,000Now we can find the NPV of the project, which is:NPV = Initial cost + PV of depreciation tax shield + PV of aftertax revenueTo find the present value of the depreciation tax shield, we should discount at the risk-free rate, and we need to discount the aftertax revenues at the cost of equity, so:NPV = –$11,400,000 + $760,000(PVIFA3.5%,6) + $1,920,000(PVIFA11%,6)NPV = $772,332.978.Whether the company issues stock or issues equity to finance the project is irrelevant. Thecompany’s optimal capital structure determines the WACC. In a world with corporate taxes, a firm’s weighted average cost of capital equals:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SR WACC = .80(1 – .34)(.069) + .20(.1080)R WACC = .0580, or 5.80%Now we can use the weighted average cost of capital to discount NEC’s unlevered cash flows. Doing so, we find the NPV of the project is:NPV = –$45,000,000 + $3,100,000 / .0580NPV = $8,418,803.429. a.The company has a capital structure with three parts: long-term debt, short-term debt, andequity. Since interest payments on both long-term and short-term debt are tax-deductible, multiply the pretax costs by (1 –t C) to determine the aftertax costs to be used in the weighted average cost of capital calculation. The WACC using the book value weights is:R WACC = (X STD)(R STD)(1 –t C) + (X LTD)(R LTD)(1 –t C) + (X Equity)(R Equity)R WACC = ($10 / $19)(.041)(1 – .35) + ($3 / $19)(.072)(1 – .35) + ($6 / $19)(.138)R WACC = .0650, or 6.50%ing the market value weights, the company’s WACC is:R WACC = (X STD)(R STD)(1 –t C) + (X LTD)(R LTD)(1 –t C) + (X Equity)(R Equity)R WACC = ($11 / $40)(.041)(1 – .35) + ($10 / $40)(.072)(1 – .35) + ($26 / $40)(.138)R WACC = .1005, or 10.05%ing the target debt-equity ratio, the target debt-value ratio for the company is:B/S = .60B = .6SSubstituting this in the debt-value ratio, we get:B/V = .6S / (.6S + S)B/V = .6 / 1.6B/V = .375And the equity-value ratio is one minus the debt-value ratio, or:S/V = 1 – .375S/V = .625We can use the ratio of short-term debt to long-term debt in a similar manner to find the short-term debt to total debt and long-term debt to total debt. Using the short-term debt to long-term debt ratio, we get:STD/LTD = .20STD = .2LTDSubstituting this in the short-term debt to total debt ratio, we get:STD/B = .2LTD / (.2LTD + LTD)STD/B = .2 / 1.2STD/B = .167And the long-term debt to total debt ratio is one minus the short-term debt to total debt ratio, or: LTD/B = 1 – .167LTD/B = .833Now we can find the short-term debt to value ratio and long-term debt to value ratio bymultiplying the respective ratio by the debt-value ratio. So:STD/V = (STD/B)(B/V)STD/V = .167(.375)STD/V = .063And the long-term debt to value ratio is:LTD/V = (LTD/B)(B/V)LTD/V = .833(.375)LTD/V = .313So, using the target capital structure weights, the company’s WACC is:R WACC = (X STD)(R STD)(1 –t C) + (X LTD)(R LTD)(1 – t C) + (X Equity)(R Equity)R WACC = (.063)(.041)(1 – .35) + (.313)(.072)(1 – .35) + (.625)(.138)R WACC = .1025, or 10.25%d.The differences in the WACCs are due to the different weighting schemes. The company’sWACC will most closely resemble the WACC calculated using target weights since futureprojects will be financed at the target ratio. Therefore, the WACC computed with targetweights should be used for project evaluation.Intermediate10.The adjusted present value of a project equals the net present value of the project under all-equityfinancing plus the net present value of any financing side effects. In the joint venture’s case, the NPV of financing side effects equals the aftertax present value of cash flows resulting from the firms’ debt. So, the APV is:APV = NPV(All-Equity) + NPV(Financing Side Effects)The NPV for an all-equity firm is:NPV(All-Equity)NPV = –Initial Investment + PV[(1 –t C)(EBITD)] + PV(Depreciation Tax Shield)Since the initial investment will be fully depreciated over five years using the straight-line method, annual depreciation expense is:Annual depreciation = $80,000,000/5Annual depreciation = $16,000,000NPV = –$80,000,000 + (1 – .35)($12,100,000)PVIFA13%,20 + (.35)($16,000,000)PVIFA13%,5NPV = –$5,053,833.77NPV(Financing Side Effects)The NPV of financing side effects equals the after-tax present value of cash flows resulting from the firm’s debt. The coupon rate on the debt is relevant to determine the interest payments, but the resulting cash flows should still be discounted at the pretax cost of debt. So, the NPV of the financing effects is:NPV = Proceeds – Aftertax PV(Interest Payments) – PV(Principal Repayments)NPV = $25,000,000 – (1 – .35)(.05)($25,000,000)PVIFA8.5%,15– $25,000,000/1.08515NPV = $10,899,310.51So, the APV of the project is:APV = NPV(All-Equity) + NPV(Financing Side Effects)APV = –$5,053,833.77 + $10,899,310.51APV = $5,845,476.7311.If the company had to issue debt under the terms it would normally receive, the interest rate on thedebt would increase to the company’s normal cost of debt. The NPV of an all-equity project would remain unchanged, but the NPV of the financing side effects would change. The NPV of the financing side effects would be:NPV = Proceeds – Aftertax PV(Interest Payments) – PV(Principal Repayments)NPV = $25,000,000 – (1 – .35)(.085)($25,000,000)PVIFA8.5%,15– $25,000,000/1.08515NPV = $6,176,275.95Using the NPV of an all-equity project from the previous problem, the new APV of the project would be:APV = NPV(All-Equity) + NPV(Financing Side Effects)APV = –$5,053,833.77 + $6,176,275.95APV = $1,122,442.18The gain to the company from issuing subsidized debt is the difference between the two APVs, so: Gain from subsidized debt = $5,845,476.73 – 1,122,442.18Gain from subsidized debt = $4,723,034.55Most of the value of the project is in the form of the subsidized interest rate on the debt issue.12.The adjusted present value of a project equals the net present value of the project under all-equityfinancing plus the net present value of any financing side effects. First, we need to calculate the unlevered cost of equity. According to Modigliani-Miller Proposition II with corporate taxes:R S = R0 + (B/S)(R0–R B)(1 –t C).16 = R0 + (.50)(R0– .09)(1 – .40)R0 = .1438 or 14.38%Now we can find the NPV of an all-equity project, which is:NPV = PV(Unlevered Cash Flows)NPV = –$18,000,000 + $5,700,000/1.1438 + $9,500,000/(1.1438)2 + $8,800,000/1.14383NPV = $124,086.62Next, we need to find the net present value of financing side effects. This is equal the aftertax present value of cash flows resulting from the firm’s debt. So:NPV = Proceeds – Aftertax PV(Interest Payments) – PV(Principal Payments)Each year, an equal principal payment will be made, which will reduce the interest accrued during the year. Given a known level of debt, debt cash flows should be discounted at the pre-tax cost of debt, so the NPV of the financing effects is:NPV = $9,300,000 – (1 – .40)(.09)($9,300,000) / 1.09 – $3,100,000/1.09– (1 – .40)(.09)($6,200,000)/1.092– $3,100,000/1.092– (1 – .40)(.09)($3,100,000)/1.093– $3,100,000/1.093NPV = $581,194.61So, the APV of project is:APV = NPV(All-equity) + NPV(Financing side effects)APV = $124,086.62 + 581,194.61APV = $705,281.2313. a.To calculate the NPV of the project, we first need to find the company’s WACC. In a worldwith corporate taxes, a firm’s weighted average cost of capital equals:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SThe market value of the company’s equity is:Market value of equity = 4,500,000($25)Market value of equity = $112,500,000So, the debt-value ratio and equity-value ratio are:Debt-value = $55,000,000 / ($55,000,000 + 112,500,000)Debt-value = .3284Equity-value = $112,500,000 / ($55,000,000 + 112,500,000)Equity-value = .6716Since the CEO believes its current capital structure is optimal, these values can be used as the target w eights in the firm’s weighted average cost of capital calculation. The yield to maturity of the company’s debt is its pretax cost of debt. To find the company’s cost of equity, we need to calculate the stock beta. The stock beta can be calculated as:β = σS,M / σ2Mβ = .0415 / .202β = 1.04Now we can use the Capital Asset Pricing Model to determine the cost of equity. The Capital Asset Pricing Model is:R S = R F+ β(R M–R F)R S = 3.4% + 1.04(7.50%)R S = 11.18%Now, we can calculate the company’s WACC, which is:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SR WACC = .3284(1 – .35)(.065) + .6716(.1118)R WACC = .0890, or 8.90%Finally, we can use the WACC to discount the unlevered cash flows, which gives us an NPV of: NPV = –$42,000,000 + $11,800,000(PVIFA8.90%,5)NPV = $4,020,681.28b.The weighted average cost of capital used in part a will not change if the firm chooses to fundthe project entirely with debt. The weighted average cost of capital is based on optimal capital structure weights. Since the current capital structure is optimal, all-debt funding for the project simply implies that the firm will have to use more equity in the future to bring the capital structure back towards the target.14.We have four companies with comparable operations, so the industry average beta can be used as thebeta for this project. So, the average unlevered beta is:βUnlevered = (1.15 + 1.08 + 1.30 + 1.25) / 4βUnlevered = 1.20A debt-to-value ratio of .40 means that the equity-to-value ratio is .60. This implies a debt-equityratio of .67{=.40/.60}. Since the project will be levered, we need to calculate the levered beta, which is:βLevered = [1 + (1 –t C)(Debt/Equity)]βUnleveredβLevered = [1 + (1 – .34)(.67)]1.20βLevered = 1.72Now we can use the Capital Asset Pricing Model to determine the cost of equity. The Capital Asset Pricing Model is:R S = R F+ β(R M–R F)R S = 3.8% + 1.72(7.00%)R S = 15.85%Now, we can calculate the company’s WACC, which is:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SR WACC = .40(1 – .35)(.068) + .60(.1585)R WACC = .1130, or 11.30%Finally, we can use the WACC to discount the unlevered cash flows, which gives us an NPV of: NPV = –$4,500,000 + $675,000(PVIFA11.30%,20)NPV = $770,604.48Challenge15. a.The company is currently an all-equity firm, so the value as an all-equity firm equals thepresent value of aftertax cash flows, discounted at the cost of the firm’s unlevered cost of equity. So, the current value of the company is:V U = [(Pretax earnings)(1 –t C)] / R0V U = [($21,000,000)(1 – .35)] / .16V U = $85,312,500The price per share is the total value of the company divided by the shares outstanding, or:Price per share = $85,312,500 / 1,300,000Price per share = $65.63b.The adjusted present value of a firm equals its value under all-equity financing plus the netpresent value of any financing side effects. In this case, the NPV of financing side effects equals the aftertax present value of cash flows resulting from the firm’s debt. Given a known level of debt, debt cash flows can be discounted at the pretax cost of debt, so the NPV of the financing effects are:NPV = Proceeds – Aftertax PV(Interest Payments)NPV = $30,000,000 – (1 – .35)(.09)($30,000,000) / .09NPV = $10,500,000So, the value of the company after the recapitalization using the APV approach is:V = $85,312,500 + 10,500,000V = $95,812,500Since the company has not yet issued the debt, this is also the value of equity after the announcement. So, the new price per share will be:New share price = $95,812,500 / 1,300,000New share price = $73.70c.The company will use the entire proceeds to repurchase equity. Using the share price wecalculated in part b, the number of shares repurchased will be:Shares repurchased = $30,000,000 / $73.70Shares repurchased = 407,045And the new number of shares outstanding will be:New shares outstanding = 1,300,000 – 407,045New shares outstanding = 892,955The value of the company increased, but part of that increase will be funded by the new debt.The value of equity after recapitalization is the total value of the company minus the value of debt, or:New value of equity = $95,812,500 – 30,000,000New value of equity = $65,812,500So, the price per share of the company after recapitalization will be:New share price = $65,812,500 / 892,955New share price = $73.70The price per share is unchanged.d.In order to value a firm’s equity using the flow-to-equity approach, we must discount the cashflows available to equity holders at the cost of the firm’s levered equity. According to Modigliani-Miller Proposition II with corporate taxes, the required return of levered equity is: R S = R0 + (B/S)(R0–R B)(1 –t C)R S = .16 + ($30,000,000 / $65,812,500)(.16 – .09)(1 – .35)R S = .1807, or 18.07%After the recapitalization, the net income of the company will be:EBIT $21,000,000Interest 2,700,000EBT $18,300,000Taxes 6,405,000Net income $11,895,000The firm pays all of its earnings as dividends, so the entire net income is available toshareholders. Using the flow-to-equity approach, the value of the equity is:S = Cash flows available to equity holders / R SS = $11,895,000 / .1807S = $65,812,50016. a.If the company were financed entirely by equity, the value of the firm would be equal to thepresent value of its unlevered after-tax earnings, discounted at its unlevered cost of capital.First, we need to find the company’s unlevered cash flows, which are:Sales $17,500,000Variable costs 10,500,000EBT $7,000,000Tax 2,800,000Net income $4,200,000So, the value of the unlevered company is:V U = $4,200,000 / .13V U = $32,307,692.31b.According to Modigliani-Miller Proposition II with corporate taxes, the value of levered equityis:R S = R0 + (B/S)(R0–R B)(1 –t C)R S = .13 + (.35)(.13 – .07)(1 – .40)R S = .1426 or 14.26%c.In a world with corporate taxes, a firm’s weighted average cost of capital equals:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SSo we need the debt-value and equity-value ratios for the company. The debt-equity ratio forthe company is:B/S = .35B = .35SSubstituting this in the debt-value ratio, we get:B/V = .35S / (.35S + S)B/V = .35 / 1.35B/V = .26And the equity-value ratio is one minus the debt-value ratio, or:S/V = 1 – .26S/V = .74So, using the capital structure weights, the company’s WACC is:R WACC = [B / (B + S)](1 –t C)R B + [S / (B + S)]R SR WACC = .26(1 – .40)(.07) + .74(.1426)R WACC = .1165, or 11.65%We can use the weighted average cost of capital to discount the firm’s unlevered aftertax earnings to value the company. Doing so, we find:V L = $4,200,000 / .1165V L = $36,045,772.41Now we can use the debt-value ratio and equity-value ratio to find the value of debt and equity, which are:B = V L(Debt-value)B = $36,045,772.41(.26)B = $9,345,200.25S = V L(Equity-value)S = $36,045,772.41(.74)S = $26,700,572.16d.In order to value a firm’s equity using the flow-to-equity approach, we can discount the cashflows available to equity holders at the cost of the firm’s levered equity. First, we need to calculate the levered cash flows available to shareholders, which are:Sales $17,500,000Variable costs 10,500,000EBIT $7,000,000Interest 654,164EBT $6,345,836Tax 2,538,334Net income $3,807,502So, the value of equity with the flow-to-equity method is:S = Cash flows available to equity holders / R SS = $3,807,502 / .1426S = $26,700,572.1617. a.Since the company is currently an all-equity firm, its value equals the present value of itsunlevered after-tax earnings, discounted at its unlevered cost of capital. The cash flows to shareholders for the unlevered firm are:EBIT $118,000Tax 47,200Net income $70,800So, the value of the company is:V U = $70,800 / .14V U = $505,714.29b.The adjusted present value of a firm equals its value under all-equity financing plus the netpresent value of any financing side effects. In this case, the NPV of financing side effects equals the after-tax present value of cash flows resulting from debt. Given a known level of debt, debt cash flows should be discounted at the pre-tax cost of debt, so:NPV = Proceeds – Aftertax PV(Interest payments)NPV = $235,000 – (1 – .40)(.08)($235,000) / .08NPV = $94,000So, using the APV method, the value of the company is:APV = V U + NPV(Financing side effects)APV = $505,714.29 + 94,000APV = $599,714.29The value of the debt is given, so the value of equity is the value of the company minus the value of the debt, or:S = V–BS = $599,714.29 – 235,000S = $364,714.29c.According to Modigliani-Miller Proposition II with corporate taxes, the required return oflevered equity is:R S = R0 + (B/S)(R0–R B)(1 –t C)R S = .14 + ($235,000 / $364,714.29)(.14 – .08)(1 – .40)R S = .1632, or 16.32%d.In order to value a firm’s equity using the flow-to-equity approach, we can discount the cashflows available to equity holders at the cost of the firm’s levered equity. First, we need to calculate the levered cash flows available to shareholders, which are:EBIT $118,000Interest 18,800EBT $99,200Tax 39,680Net income $59,520。
《公司理财》课后习题与答案
《公司理财》考试范围：第3~7章，第13章，第16~19章，其中第16章和18章为较重点章节。
书上例题比较重要，大家记得多多动手练练。
PS：书中课后例题不出，大家可以当习题练练~考试题型：1.单选题10分 2.判断题10分 3.证明题10分 4.计算分析题60分 5.论述题10分注：第13章没有答案第一章1.在所有权形式的公司中,股东是公司的所有者。
股东选举公司的董事会,董事会任命该公司的管理层。
企业的所有权和控制权分离的组织形式是导致的代理关系存在的主要原因。
管理者可能追求自身或别人的利益最大化,而不是股东的利益最大化。
在这种环境下,他们可能因为目标不一致而存在代理问题。
2.非营利公司经常追求社会或政治任务等各种目标。
非营利公司财务管理的目标是获取并有效使用资金以最大限度地实现组织的社会使命。
3.这句话是不正确的。
管理者实施财务管理的目标就是最大化现有股票的每股价值，当前的股票价值反映了短期和长期的风险、时间以及未来现金流量。
4.有两种结论。
一种极端,在市场经济中所有的东西都被定价。
因此所有目标都有一个最优水平，包括避免不道德或非法的行为，股票价值最大化。
另一种极端,我们可以认为这是非经济现象,最好的处理方式是通过政治手段。
一个经典的思考问题给出了这种争论的答案:公司估计提高某种产品安全性的成本是30美元万。
然而,该公司认为提高产品的安全性只会节省20美元万。
请问公司应该怎么做呢”5.财务管理的目标都是相同的,但实现目标的最好方式可能是不同的,因为不同的国家有不同的社会、政治环境和经济制度。
6.管理层的目标是最大化股东现有股票的每股价值。
如果管理层认为能提高公司利润，使股价超过35美元,那么他们应该展开对恶意收购的斗争。
如果管理层认为该投标人或其它未知的投标人将支付超过每股35美元的价格收购公司,那么他们也应该展开斗争。
然而,如果管理层不能增加企业的价值,并且没有其他更高的投标价格,那么管理层不是在为股东的最大化权益行事。
公司理财精要版第10版Chap09
NPV法：例子
0
1
2
3
4
初始支出 收入 ($1,100) 费用
现金流量
$1,000 500
$500
收入 费用
现金流量
– $1,100.00 1
$500 x 1.10
+454.54
+578.51
1 $700 x
1.10 2
-375.66
+819.62
+$377.02 = NPV
$2,000 1,300
优点:
易于理解 偏向于短期项目，对流动性考虑比较充分
公司理财精要版第10版Chap09
9.2 回收期法
项目A、B、C的预期现金流量
年份 0 1 2 3 4
回收期（年）
A -100
20 30 50 60
3
B -100
50 30 20 60
3
C -100
50 30 20 60000
3
公司理财精要版第10版Chap09
问题1：多重收益率问题
非常规现金流量：项目的现金流量改变符号两次以上。 非常规现金流量的项目可能拥有多个内部收益率。（若现
金流量变号N次，那么就可能会有最多达N个正的内部收益 率。） 对于非常规现金流量的项目，内部收益率法则无效。 当项目的现金流量只有一次变号时，内部收益率是唯一的。
公司理财精要版第10版Chap09
公司理财精要版第10版 Chap09
2020/11/6
公司理财精要版第10版Chap09
第9章
净现值和其他投资准则
McGraw-Hill/Irwin
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If we let P equal the purchase price of the fleet, then the NPV is:
NPV = –P + (1 – .35)($175,000)PVIFA13%,5 + (.35)(P/5)PVIFA13%,5
5. You can estimate the unlevered beta from a levered beta. The unlevered beta is the beta of the assets of the firm; as such, it is a measure of the business risk. Note that the unlevered beta will always be lower than the levered beta (assuming the betas are positive). The difference is due to the leverage of the company. Thus, the second risk factor measured by a levered beta is the financial risk of the company.
b. The adjusted present value (APV) of a project equals the net present value of the project if it were funded completely by equity plus the net present value of any financing side effects. In this case, the NPV of financing side effects equals the after-tax present value of the cash flows resulting from the firm’s debt, so:
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Setting the NPV equal to zero and solving for the purchase price, we find:
0 = –P + (1 – .35)($175,000)PVIFA13%,5 + (.35)(P/5)PVIFA13%,5 P = $400,085.06 + (P)(.35/5)PVIFA13%,5 P = $400,085.06 + .2462P .7538P = $400,085.06 P = $530,761.93
APV = NPV(All-Equity) + NPV(Financing Side Effects) So, the NPV of each part of the APV equation is:
2. The WACC is based on a target debt level while the APV is based on the amount of debt.
3. FTE uses levered cash flow and other methods use unlevered cash flow.
Solutions to Questions and Problems
NOTE: All end-of-chapter problems were solved using a spreadsheet. Many problems require multiple steps. Due to space and readability constraints, when these intermediate steps are included in this solutions manual, rounding may appear to have occurred. However, the final answer for each problem is found without rounding during any step in the problem.
4. The WACC method does not explicitly include the interest cash flows, but it does implicitly include the interest cost in the WACC. If he insists that the interest payments are explicitly shown, you should use the FTE method.
CHAPTER 18 VALUATION AND CAPITAL BUDGETING FOR THE LEVERED FIRM
Answers to Concepts Review and Critical Thinking Questions
1. APV is equal to the NPV of the project (i.e. the value of the project for an unlevered firm) plus the NPV of financing side effects.
Basic
1. a. The maximum price that the company should be willing to pay for the fleet of cars with allequity funding is the price that makes the NPV of the transaction equal to zero. The NPV equation for the project is: