公司理财精要第十版全
(公司理财)公司理财(精要版)知识点归纳
第一章．公司理财导论1.企业组织形态：单一业主制、合伙制、股份公司（所有权和管理相分离、相对容易转让所有权、对企业债务负有限责任，使企业融资更加容易。
企业寿命不受限制，但双重课税）2.财务管理的目标：为了使现有股票的每股当前价值最大化。
或使现有所有者权益的市场价值最大化。
3.股东与管理层之间的关系成为代理关系。
代理成本是股东与管理层之间的利益冲突的成本。
分直接和间接。
4.公司理财包括三个领域：资本预算、资本结构、营运资本管理第二章．1.在企业资本结构中利用负债成为“财务杠杆”。
2.净利润与现金股利的差额就是新增的留存收益。
3.来自资产的现金流量=经营现金流量（OCF）-净营运资本变动-资本性支出4.OCF=EBIT+折旧-税5.净资本性支出=期末固定资产净值-期初固定资产净值+折旧6.流向债权人的现金流量=利息支出-新的借款净额7.流向股东的现金流量=派发的股利-新筹集的净权益第三章1.现金来源：应付账款的增加、普通股本的增加、留存收益增加现金运用：应收账款增加、存货增加、应付票据的减少、长期负债的减少2.报表的标准化：同比报表、同基年度财报3.ROE=边际利润（经营效率）X总资产周转率（资产使用效率）X权益乘数（财务杠杆）4.为何评价财务报表：内部：业绩评价。
外部：评价供应商、短期和长期债权人和潜在投资者、信用评级机构。
第四章．1.制定财务计划的过程的两个维度：计划跨度和汇总。
2.一个财务计划制定的要件：销售预测、预计报表、资产需求、筹资需求、调剂、经济假设。
3.销售收入百分比法：提纯率=再投资率=留存收益增加额/净利润=1-股利支付率资本密集率=资产总额/销售收入4.内部增长率=(ROAXb)/(1-ROAXb)可持续增长率=ROE/(1-ROEXb):企业在保持固定的债务权益率同时没有任何外部权益筹资的情况下所能达到的最大的增长率。
是企业在不增加财务杠杆时所能保持的最大的增长率。
（如果实际增长率超过可持续增长率，管理层要考虑的问题就是从哪里筹集资金来支持增长。
公司理财第十版PPTChap007
• B = PV of annuity + PV of lump sum • B = 100[1 – 1/(1.08)20] / .08 + 1000 / (1.08)20 • B = 981.81 + 214.55 = 1196.36
▪ Using the calculator:
Why? The discount provides yield above coupon rate Price below par value, called a discount bond
• If YTM < coupon rate, then par value < bond price
▪ Why? Higher coupon rate causes value above par ▪ Price above par value, called a
•7-5
Valuing a Discount Bond with Annual Coupons
• Consider a bond with a coupon rate of 10% and annual coupons. The par value is $1,000, and the bond has 5 years to maturity. The yield to maturity is 11%. What is the value of the bond?
• Bond Value = PV of coupons + PV of par • Bond Value = PV of annuity + PV of lump
sum • As interest rates increase, present values
《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。
公司理财第十版PPTChap.ppt
PV = -917.56
7-11
Interest Rate Risk
• Price Risk
▪ Change in price due to changes in interest rates ▪ Long-term bonds have more price risk than short-term
rates • Understand the term structure of interest rates
and the determinants of bond yields
7-2
Chapter Outline
• Bonds and Bond Valuation • More about Bond Features • Bond Ratings • Some Different Types of Bonds • Bond Markets • Inflation and Interest Rates • Determinants of Bond Yields
7-12
Figure 7.2
7-13
Computing Yield to Maturity
• Yield to Maturity (YTM) is the rate implied by the current bond price
• Finding the YTM requires trial and error if you do not have a financial calculator and is similar to the process for finding r with an annuity
公司理财精要版第10版Chap09
$ 200
$ 182
2
400
331
3
700
526
4
300
205现CF $ 182
价值？
9-6
9.1 为什么要使用净现值
净现值（NPV）法则是决定是否实施投资的一个有效判 断标准。
投资的净现值等于： 投资产生的未来全部现金流量的现值 – 初始投资
一项投资的净现值是这项投资的未来现金流量（收益）的 现值减去初始投资成本。
未来现金流量的现值是考虑过适当的市场利率进行贴现后 的现金流量的价值。
项目A、B、C的预期现金流量
年份
A
0
-100
1
20
2
30
3
50
4
60
回收期（年）
3
B
C
-100
-100
50
50
30
30
20
20
60
60000
3
3
回收期法
管理视角
回收期法决策过程简便（容易理解）。 回收期法便于决策评估。 回收期法有利于加快资金回笼。
由于上述原因，回收期法常常被用来筛选大量的小 型投资项目。
固定资产 1 有形 2 无形
公司应该投
资于什么样
的长期资产 ？
流动 负债 长期 负债
所有者 权益
Good Decision Criteria
一个好的资本预算评估准则要考虑以下问题：
▪ 该评估准则考虑了货币的时间价值？ ▪ 该评估准则是否考虑了投资蕴含的风险？ ▪ 该评估准则能否判断某项投资是否为企业创造了
什么是公司理财？
公司资产负债表模型
公司理财研究以下三个问题：
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。
公司理财第十版PPTChap007
• Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1,000, 20 years to maturity and is selling for $1,197.93.
Is the YTM more or less than 10%? What is the semiannual coupon payment? How many periods are there? N = 40; PV = -1,197.93; PMT = 50; FV = 1,000;
PPT文档演模板
公司理财第十版PPTChap007
•7-4
Present Value of Cash Flows as Rates Change
• Bond Value = PV of coupons + PV of par • Bond Value = PV of annuity + PV of lump
▪ Short-term bonds have more reinvestment rate risk than long-term bonds
▪ High coupon rate bonds have more reinvestment rate risk than low coupon rate bonds
PPT文档演模板
公司理财第十版PPTChap007
•7-3
Bond Definitions
• Bond • Par value (face value) • Coupon rate • Coupon payment • Maturity date • Yield or Yield to maturity
Chap5财务管理,公司金融,罗斯第十版概要
终值-例3
• 假设你的祖先在200年前以5.5%的利率存了10美 元。这项投资今天的价值是多少？ ▪ Formula: FV = 10(1.055)200 = 10(44,718.9838) = 447,189.84
• 复利的效应是多少?
▪ 单利= 10 + 200(10)(.055) = 120.00 ▪ 复利使得投资价值额外增加了447,069.84 美元。
• 终值利息因子= (1 + r)t
5C-6
复利的效应
• 单利 • 复利 • 考虑上一个例子
▪ 单利时的终值PV= 1,000 + 50 + 50 = 1,100 ▪ 复利时的终值FV = 1,102.50 ▪ 额外的2.5美元利息是在第一笔利息的基础之上
赚取的 .05(50) = 2.50
5C-7
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
关键概念和技能
• 理解怎样计算一个投资项目的终值 • 理解怎样计算未来收益的现值 • 理解怎样计算投资回报 • 理解怎样计算一项投资的价值增长到期望值所需要
5C-10
终值-作为一般的增长公式
• 假设你的公司预期产品的销售量在接下来 的5年中每年将增长15%。若今年售出3百 万个产品，则第五年预期售出多少个？
▪ 5 N;15 I/Y; 3,000,000 PV ▪ CPT FV = -6,034,072 单位
5C-11
小测验-第1部分
• 单利和复利的区别是什么？ • 假设你将500美元以8%的报酬率投资15年。
率”
▪ 贴现率 ▪ 资本成本率 ▪ 资本的机会成本率 ▪ 必要报酬
公司理财英文版第10版课后习题答案
Solutions Manual Fundamentals of Corporate Finance10th edition Ross, Westerfield, and Jordan06-25-2013Prepared byBrad JordanUniversity of KentuckyJoe SmoliraBelmont UniversityCHAPTER 1INTRODUCTION TO CORPORATE FINANCEAnswers to Concepts Review and Critical Thinking Questions1.Capital budgeting (deciding whether to expand a manufacturing plant), capital structure (decidingwhether to issue new equity and use the proceeds to retire outstanding debt), and working capital management (modifying the firm’s credit collection policy with its customers).2.Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, difficulty inraising capital funds. Some advantages: simpler, less regulation, the owners are also the managers, sometimes personal tax rates are better than corporate tax rates.3.The primary disadvantage of the corporate form is the double taxation to shareholders of distributedearnings and dividends. Some advantages include: limited liability, ease of transferability, ability to raise capital, and unlimited life.4.In response to Sarbanes-Oxley, small firms have elected to go dark because of the costs ofcompliance. The costs to comply with Sarbox can be several million dollars, which can be a large percentage of a small firm’s profits. A major cost of going dark is less access to capital. Since t he firm is no longer publicly traded, it can no longer raise money in the public market. Although the company will still have access to bank loans and the private equity market, the costs associated with raising funds in these markets are usually higher than the costs of raising funds in the public market.5.The treasurer’s office and the controller’s office are the two primary organizational groups thatreport directly to the chief financial officer. The controller’s office handles cost and financial acc ounting, tax management, and management information systems, while the treasurer’s office is responsible for cash and credit management, capital budgeting, and financial planning. Therefore, the study of corporate finance is concentrated within the treasur y group’s functions.6.To maximize the current market value (share price) of the equity of the firm (whether it’spubliclytraded or not).7. In the corporate form of ownership, the shareholders are the owners of the firm. The shareholderselect the dire ctors of the corporation, who in turn appoint the firm’s management. This separation of ownership from control in the corporate form of organization is what causes agency problems to exist. Management may act in its own or someone else’s best interests, ra ther than those of the shareholders. If such events occur, they may contradict the goal of maximizing the share price of the equity of the firm.8. A primary market transaction.9.In auction markets like the NYSE, brokers and agents meet at a physical location (the exchange) tomatch buyers and sellers of assets. Dealer markets like NASDAQ consist of dealers operating at dispersed locales who buy and sell assets themselves, communicating with other dealers either electronically or literally over-the-counter.10.Such organizations frequently pursue social or political missions, so many different goals areconceivable. One goal that is often cited is revenue minimization; that is, provide whatever goods and services are offered at the lowest possible cost to society. A better approach might be to observe that even a not-for-profit business has equity. Thus, one answer is that the appropriate goal is to maximize the value of the equity.11.Presumably, the current stock value reflects the risk, timing, and magnitude of all future cash flows,both short-term and long-term. If this is correct, then the statement is false.12.An argument can be made either way. At the one extreme, we could argue that in a market economy,all of these things are priced. There is thus an optimal level of, for example, ethical and/or illegal behavior, and the framework of stock valuation explicitly includes these. At the other extreme, we could argue that these are noneconomic phenomena and are best handled through the political process. A classic (and highly relevant) thought question that illustrates this debate goes something like this: “A firm has estimated that the cost of improving the safety of one of its products is $30 million. However, the firm believes that improving the safety of the product will only save $20 million in product liability claims. What should the firm do?”13.The goal will be the same, but the best course of action toward that goal may be different because ofdiffering social, political, and economic institutions.14.The goal of management should be to maximize the share price for the current shareholders. Ifmanagement believes that it can improve the profitability of the firm so that the share price will exceed $35, then they should fight the offer from the outside company. If management believes that this bidder or other unidentified bidders will actually pay more than $35 per share to acquire the company, then they should still fight the offer. However, if the current management cannot increase the value of the firm beyond the bid price, and no other higher bids come in, then management is not acting in the interests of the shareholders by fighting the offer. Since current managers often lose their jobs when the corporation is acquired, poorly monitored managers have an incentive to fight corporate takeovers in situations such as this.15.We would expect agency problems to be less severe in countries with a relatively small percentageof individual ownership. Fewer individual owners should reduce the number of diverse opinions concerning corporate goals. The high percentage of institutional ownership might lead to a higher degree of agreement between owners and managers on decisions concerning risky projects. In addition, institutions may be better able to implement effective monitoring mechanisms on managers than can individual owners, based on the institutions’ deeper resources and experiences with their own management. The increase in institutional ownership of stock in the United States and the growing activism of these large shareholder groups may lead to a reduction in agency problems for U.S. corporations and a more efficient market for corporate control.16. How much is too much? Who is worth more, Lawrence Ellison or Tiger Woods? The simplestanswer is that there is a market for executives just as there is for all types of labor. Executive compensation is the price that clears the market. The same is true for athletes and performers.Having said that, one aspect of executive compensation deserves comment. A primary reason executive compensation has grown so dramatically is that companies have increasingly moved to stock-based compensation. Such movement is obviously consistent with the attempt to better align stockholder and management interests. In recent years, stock prices have soared, so management has cleaned up. It is sometimes argued that much of this reward is simply due to rising stock prices in general, not managerial performance. Perhaps in the future, executive compensation will be designed to reward only differential performance, that is, stock price increases in excess of general market increases.公司理财英文版第10版课后习题答案CHAPTER 2FINANCIAL STATEMENTS, TAXES, AND CASH FLOWAnswers to Concepts Review and Critical Thinking Questions1.Liquidity measures how quickly and easily an asset can be converted to cash without significant lossin value. It’s desirable for firms to have high liquidity so that they have a large factor of safety in meeting short-term creditor demands. However, since liquidity also has an opportunity cost associated with it—namely that higher returns can generally be found by investing the cash into productive assets—low liquidity levels are also desirable to the firm. It’s up to the firm’s financial management staff to find a reasonable compromise between these opposing needs.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 process is essenti ally 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.Historical costs can be objectively and precisely measured whereas market values can be difficult toestimate, and different analysts would come up with different numbers. Thus, there is a trade-off between relevance (market values) and objectivity (book values).4. Depreciation is a noncash deduction that reflects adjustments made in asset book values inaccordance with the matching principle in financial accounting. Interest expense is a cash outlay, but it’s a financing cost, not an operating cost.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, 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 it 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, its cash flow to 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.11.Enterprise value is the theoretical takeover price. In the event of a takeover, an acquirer would haveto take on the company's debt but would pocket its cash. Enterprise value differs significantly from simple market capitalization in several ways, and it may be a more accurate representation of a firm's value. In a takeover, the value of a firm's debt would need to be paid by the buyer when taking overa company. This enterprise value provides a much more accurate takeover valuation because itincludes debt in its value calculation.12.In general, it appears that investors prefer companies that have a steady earnings stream. If true, thisencourages companies to manage earnings. Under GAAP, there are numerous choices for the way a company reports its financial statements. Although not the reason for the choices under GAAP, one outcome is the ability of a company to manage earnings, which is not an ethical decision. Even though earnings and cash flow are often related, earnings management should have little effect on cash flow (except for tax implications). If the market is “fooled” and prefers steady earnings, shareholder wealth can be increased, at least temporarily. However, given the questionable ethics of this practice, the company (and shareholders) will lose value if the practice is discovered. 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 $ 4,800 CL $ 4,200NFA 27,500 LTD 10,500OE ??TA $32,300 TL & OE $32,300We know that total liabilities and owners’ equity (TL & OE) must equal total assets of $32,300.We also know that TL & OE is equal to current liabilities plus long-term debt plus owners’ equity, so owners’ equity is:OE = $32,300 – 10,500 – 4,200 = $17,600NWC = CA – CL = $4,800 – 4,200 = $6002. The income statement for the company is:Income StatementSales $734,000Costs 315,000Depreciation 48,000EBIT $371,000Interest 35,000EBT $336,000Taxes (35%) 117,600Net income $218,4003.One equation for net income is:Net income = Dividends + Addition to retained earningsRearranging, we get:Addition to retained earnings = Net income – Dividends = $218,400 – 85,000 = $133,4004.EPS = Net income / Shares = $218,400 / 110,000 = $1.99 per shareDPS = Dividends / Shares = $85,000 / 110,000 = $0.77 per share5.To find the book value of current assets, we use: NWC = CA –CL. Rearranging to solve forcurrent assets, we get:CA = NWC + CL = $215,000 + 900,000 = $1,115,000The market value of current assets and fixed assets is given, so:Book value CA = $1,115,000 Market value CA = $1,250,000Book value NFA = $3,200,000 Market value NFA = $5,300,000Book value assets = $4,315,000 Market value assets = $6,550,0006.Taxes = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($255,000 – 100,000) = $82,7007.The average tax rate is the total tax paid divided by taxable income, so:Average tax rate = $82,700 / $255,000 = .3243, or 32.43%The marginal tax rate is the tax rate on the next $1 of earnings, so the marginal tax rate = 39%.8.To calculate OCF, we first need the income statement:Income StatementSales $39,500Costs 18,400Depreciation 1,900EBIT $19,200Interest 1,400Taxable income $17,800Taxes (35%) 6,230Net income $11,570OCF = EBIT + Depreciation – Taxes = $19,200 + 1,900 – 6,230 = $14,870 capital spending = NFA end– NFA beg + DepreciationNet capital spending = $3,600,000 – 2,800,000 + 345,000Net capital spending = $1,145,00010. Change in NWC = NWC end– NWC begChange in NWC = (CA end– CL end) – (CA beg– CL beg)Change in NWC = ($3,460 – 1,980) – ($3,120 – 1,570)Change in NWC = $1,480 – 1,550 = –$7011.Cash flow to creditors = Interest paid – Net new borrowingCash flow to creditors = Interest paid – (LTD end– LTD beg)Cash flow to creditors = $190,000 – ($2,550,000 – 2,300,000)Cash flow to creditors = –$60,00012. Cash flow to stockholders = Dividends paid – Net new equityCash flow to stockholders = Dividends paid – [(Common end + APIS end) – (Common beg + APIS beg)] Cash flow to stockholders = $540,000 – [($715,000 + 4,700,000) – ($680,000 + 4,300,000)]Cash flow to stockholders = $105,000Note, APIS is the additional paid-in surplus.13. Cash flow from assets = Cash flow to creditors + Cash flow to stockholders= –$60,000 + 105,000 = $45,000Cash flow from assets = $45,000 = OCF – Change in NWC – Net capital spending= $45,000 = OCF – (–$55,000) – 1,300,000Operating cash flow = $45,000 – 55,000 + 1,300,000Operating cash flow = $1,290,000Intermediate14.To find the OCF, we first calculate net income.Income StatementSales $235,000Costs 141,000Other expenses 7,900Depreciation 17,300EBIT $ 68,800Interest 12,900Taxable income $ 55,900Taxes 19,565Net income $ 36,335Dividends $12,300Additions to RE $24,035a.OCF = EBIT + Depreciation – Taxes = $68,800 + 17,300 – 19,565 = $66,535b.CFC = Interest – Net new LTD = $12,900 – (–4,500) = $17,400Note that the net new long-term debt is negative because the company repaid part of its long-term debt.c.CFS = Dividends – Net new equity = $12,300 – 6,100 = $6,200d.We know that CFA = CFC + CFS, so:CFA = $17,400 + 6,200 = $23,600CFA 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 + Depreciation = $25,000 + 17,300 = $42,300Now we can use:CFA = OCF – Net capital spending – Change in NWC$23,600 = $66,535 – 42,300 – Change in NWCChange in NWC = $635This means that the company increased its NWC by $635.15.The solution to this question works the income statement backwards. Starting at the bottom:Net income = Dividends + Addition to retained earnings = $1,800 + 5,300 = $7,100Now, 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) = $7,100 / (1 – 0.35) = $10,923Now you can calculate:EBIT = EBT + Interest = $10,923 + 4,900 = $15,823The last step is to use:EBIT = Sales – Costs – Depreciation$15,823 = $52,000 – 27,300 – DepreciationSolving for depreciation, we find that depreciation = $8,87716.The balance sheet for the company looks like this:Balance SheetCash $ 127,000 Accounts payable $ 210,000Accounts receivable 105,000 Notes payable 160,000Inventory 293,000 Current liabilities $ 370,000Current assets $ 525,000 Long-term debt 845,000Total liabilities $1,215,300 Tangible net fixed assets 1,620,000Intangible net fixed assets 630,000 Common stock ??Accumulated ret. earnings 1,278,000 Total assets $2,775,000 Total liab. & owners’ equity$2,755,000Total liabilities and owners’ equity is:TL & OE = CL + LTD + Common stock + Retained earningsSolving for this equation for equity gives us:Common stock = $2,755,000 – 1,215,300 – 1,278,000 = $282,00017.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 $7,100, equity is equal to $1,300, and if TA is $5,200, equity is equal to $0. We should note here that the book value of shareholders’ equity can be negative.18. a. Taxes Growth = 0.15($50,000) + 0.25($25,000) + 0.34($1,000) = $14,090Taxes Income = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($235,000)+ 0.34($7,600,000 – 335,000)= $2,584,000b. 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.19.Income StatementSales $850,000COGS 610,000A&S expenses 110,000Depreciation 140,000EBIT –$10,000Interest 85,000Taxable income –$95,000Taxes (35%) 0 income –$95,000b.OCF = EBIT + Depreciation – Taxes = –$10,000 + 140,000 – 0 = $130,000 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.20. 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 capital spendingCash flow from assets = $130,000 – 0 – 0 = $130,000Cash flow to stockholders = Dividends – Net new equity = $63,000 – 0 = $63,000Cash flow to creditors = Cash flow from assets – Cash flow to stockholdersCash flow to creditors = $130,000 – 63,000 = $67,000Cash flow to creditors = Interest – Net new LTDNet new LTD = Interest – Cash flow to creditors = $85,000 – 67,000 = $18,00021. a.Income StatementSales $27,360Cost of goods sold 19,260Depreciation 4,860EBIT $ 3,240Interest 2,190Taxable income $ 1,050Taxes (34%)Net incomeb.OCF = EBIT + Depreciation –= $3,240 + 4,860 –c.Change in NWC = NWC end– NWC beg= (CA end– CL end) – (CA beg– CL beg)= ($7,116 – 3,780) – ($5,760 – 3,240)= $3,336 – 2,520 = $816Net capital spending = NFA end– NFA beg + Depreciation= $20,160 – 16,380 + 4,860 = $8,640CFA = OCF – Change in NWC – Net capital spending= $7,743 – 816 – 8,640 = –$1,713The cash flow from assets can be positive or negative, since it represents whether the firmraised funds or distributed funds on a net basis. In this problem, even though net income andOCF are positive, the firm invested heavily in both fixed assets and net working capital; ithad to raise a net $1,713 in funds from its stockholders and creditors to make theseinvestments.d.Cash flow to creditors = Interest – Net new LTD = $2,190 – 0 = $2,190Cash flow to stockholders = Cash flow from assets – Cash flow to creditors= –$1,713 – 2,190 = –$3,903We 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 = $1,560 – (–3,903) = $5,463The firm had positive earnings in an accounting sense (NI > 0) and had positive cash flowfrom operations. The firm invested $816 in new net working capital and $8,640 in new fixedassets. The firm had to raise $1,713 from its stakeholders to support this new investment. Itaccomplished this by raising $5,463 in the form of new equity. After paying out $1,560 ofthis in the form of dividends to shareholders and $2,190 in the form of interest to creditors,$1,713 was left to meet the firm’s cash flow n eeds for investment.22. a.Total assets 2010 = $914 + 3,767 = $4,681Total liabilities 2010 = $365 + 1,991= $2,356Owners’ equity 2010 = $4,681 – 2,356 = $2,325Total assets 2011 = $990 + 4,536 = $5,526Total liabilities 2011 = $410 + 2,117 = $2,527Owners’ equity 2011 = $5,526 – 2,527 = $2,999b.NWC 2010 = CA10 – CL10 = $914 – 365 = $549NWC 2011 = CA11 – CL11 = $990 – 410 = $580Change in NWC = NWC11 – NWC10 = $580 – 549 = $31c.We can calculate net capital spending as:Net capital spending = Net fixed assets 2011 – Net fixed assets 2010 + DepreciationNet capital spending = $4,536 – 3,767 + 1,033 = $1,802So, the company had a net capital spending cash flow of $1,802. We also know that netcapital spending is:Net capital spending = Fixed assets bought – Fixed assets sold$1,802 = $1,890 – Fixed assets soldFixed assets sold = $1,890 – 1,802 = $88To calculate the cash flow from assets, we must first calculate the operating cash flow. Theincome statement is:Income StatementSales $11,592Costs 5,405Depreciation expense 1,033EBIT $ 5,154Interest expense 294EBT $ 4,860Taxes (35%) 1,701Net income $ 3,159So, the operating cash flow is:OCF = EBIT + Depreciation – Taxes = $5,154 + 1,033 – 1,701 = $4,486And the cash flow from assets is:Cash flow from assets = OCF – Change in NWC – Net capital spending.= $4,486 – 31 – 1,802 = $2,653 new borrowing = LTD11 – LTD10 = $2,117 – 1,991 = $126Cash flow to creditors = Interest – Net new LTD = $294 – 126 = $168Net new borrowing = $126 = Debt issued – Debt retiredDebt retired = $378 – 126 = $252Challenge 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 beg24. 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.Taxes = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($235,000) = $113,900Average tax rate = $113,900 / $335,000 = 34%The marginal tax rate on the next dollar of income is 34 percent.For corporate taxable income levels of $335,000 to $10 million, average tax rates are equal tomarginal tax rates.Taxes = 0.34($10,000,000) + 0.35($5,000,000) + 0.38($3,333,333)= $6,416,667Average tax rate = $6,416,667 / $18,333,333 = 35%The marginal tax rate on the next dollar of income is 35 percent. For corporate taxableincome levels over $18,333,334, average tax rates are again equal to marginal tax rates.c.Taxes = 0.34($200,000) = $68,000$68,000 = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + X($100,000);X($100,000) = $68,000 – 22,250X = $45,750 / $100,000X = 45.75%25.Balance sheet as of Dec. 31, 2010Cash $ 6,067 Accounts payable $ 4,384Accounts receivable 8,034 Notes payable 1,171Inventory 14,283 Current liabilities $ 5,555Current assets $28,384Long-term debt $20,320 Net fixed assets $50,888 Owners' equity $53,397Total assets $79,272 Total liab. & equity $79,272Balance sheet as of Dec. 31, 2011Cash $ 6,466 Accounts payable $ 4,644Accounts receivable 9,427 Notes payable 1,147Inventory 15,288 Current liabilities $ 5,791Current assets $31,181Long-term debt $24,636 Net fixed assets $54,273 Owners' equity $55,027Total assets $85,454 Total liab. & equity $85,4542010 Income Statement 2011 Income Statement Sales $11,573.00Sales $12,936.00 COGS 3,979.00COGS 4,707.00 Other expenses 946.00Other expenses 824.00 Depreciation 1,661.00Depreciation 1,736.00 EBIT $ 4,987.00EBIT $ 5,669.00 Interest 776.00Interest 926.00 EBT $ 4,211.00EBT $ 4,743.00 Taxes (34%) 1,431.74Taxes (34%) 1,612.62 Net income $ 2,779.26Net income $ 3,130.38 Dividends $1,411.00Dividends $1,618.00 Additions to RE 1,368.26Additions to RE 1,512.3826.OCF = EBIT + Depreciation – Taxes = $5,669 + 1,736 – 1,612.62 = $5,792.38Change in NWC = NWC end– NWC beg = (CA – CL) end– (CA – CL) beg= ($31,181 – 5,791) – ($28,384 – 5,555)= $2,561Net capital spending = NFA end– NFA beg+ Depreciation= $54,273 – 50,888 + 1,736 = $5,121Cash flow from assets = OCF – Change in NWC – Net capital spending= $5,792.38 – 2,561 – 5,121 = –$1,889.62Cash flow to creditors = Interest – Net new LTDNet new LTD = LTD end– LTD begCash flow to creditors = $926 – ($24,636 – 20,320) = –$3,390Net new equity = Common stock end– Common stock begCommon stock + Retained earnings = Total owners’ equityNet new equity = (OE – RE) end– (OE – RE) beg= OE end– OE beg + RE beg– RE endRE end= RE beg+ Additions to RE08Net new equity = OE end– OE beg+ RE beg– (RE beg + Additions to RE11)= OE end– OE beg– Additions to RENet new equity = $55,027 – 53,397 – 1,512.38 = $117.62CFS = Dividends – Net new equityCFS = $1,618 – 117.62 = $1,500.38As a check, cash flow from assets is –$1,889.62.CFA = Cash flow from creditors + Cash flow to stockholdersCFA = –$3,390 + 1,500.38 = –$1,889.62公司理财英文版第10版课后习题答案CHAPTER 3WORKING WITH FINANCIAL STATEMENTSAnswers to Concepts Review and Critical Thinking Questions1. a.If inventory is purchased with cash, then there is no change in the current ratio. If inventory ispurchased on credit, then there is a decrease in the current ratio if it was initially greater than 1.0.b.Reducing accounts payable with cash increases the current ratio if it was initially greater than 1.0.c.Reducing short-term debt with cash increases the current ratio if it was initially greater than 1.0.d.As long-term debt approaches maturity, the principal repayment and the remaining interestexpense become current liabilities. Thus, if debt is paid off with cash, the current ratio increases if it was initially greater than 1.0. If the debt has not yet become a current liability, then paying it off will reduce the current ratio since current liabilities are not affected.e.Reduction of accounts receivables and an increase in cash leaves the current ratio unchanged.f.Inventory sold at cost reduces inventory and raises cash, so the current ratio is unchanged.g. Inventory sold for a profit raises cash in excess of the inventory recorded at cost, so the currentratio increases.2.The firm has increased inventory relative to other current assets; therefore, assuming current liabilitylevels remain unchanged, liquidity has potentially decreased.3. A current ratio of 0.50 means that the firm has twice as much in current liabilities as it does incurrent assets; the firm potentially has poor liquidity. If pressed by its short-term creditors and suppliers for immediate payment, the firm might have a difficult time meeting its obligations. A current ratio of 1.50 means the firm has 50% more current assets than it does current liabilities. This probably represents an improvement in liquidity; short-term obligations can generally be met completely with a safety factor built in. A current ratio of 15.0, however, might be excessive. Any excess funds sitting in current assets generally earn little or no return. These excess funds might be put to better use by investing in productive long-term assets or distributing the funds to shareholders.4. a.Quick ratio provides a measure of the short-term liquidity of the firm, after removing the effectsof inventory, generally the least liquid of the firm’s current assets.b.Cash ratio represents the ability of the firm to completely pay off its current liabilities with itsmost liquid asset (cash).c.Total asset turnover measures how much in sales is generated by each dollar of firm assets.d.Equity multiplier represents the degree of leverage for an equity investor of the firm; it measuresthe dollar worth of firm assets each equity dollar has a claim to.e.Long-term debt ratio measures the percentage of total firm capitalization funded by long-termdebt.。
罗斯《公司金融》第十版课件Chap002
2-14
US Corporation Income Statement – Table 2.2
NWC $ 400 $ 600 LTD $ 500 $ 500
ห้องสมุดไป่ตู้NFA
700 1,000 SE
600 1,100
1,100 1,600
1,100 1,600
2-12
Chapter Outline
• The Balance Sheet • The Income Statement • Taxes • Cash Flow
Each major industry has different tax incentives provided by the US Government and as such, may actually pay a different average tax rate:
2-24
Chapter Outline
2-15
Work the Web Example
Publicly traded companies must file regular reports with the Securities and Exchange Commission
These reports are usually filed electronically and can be searched at the SEC public site called EDGAR
公司理财英文版第10版课后习题答案
Solutions Manual Fundamentals of Corporate Finance10th edition Ross, Westerfield, and Jordan06-25-2013Prepared byBrad JordanUniversity of KentuckyJoe SmoliraBelmont UniversityCHAPTER 1INTRODUCTION TO CORPORATE FINANCEAnswers to Concepts Review and Critical Thinking Questions1.Capital budgeting (deciding whether to expand a manufacturing plant), capital structure (decidingwhether to issue new equity and use the proceeds to retire outstanding debt), and working capital management (modifying the firm’s credit collection policy with its customers).2.Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, difficulty inraising capital funds. Some advantages: simpler, less regulation, the owners are also the managers, sometimes personal tax rates are better than corporate tax rates.3.The primary disadvantage of the corporate form is the double taxation to shareholders of distributedearnings and dividends. Some advantages include: limited liability, ease of transferability, ability to raise capital, and unlimited life.4.In response to Sarbanes-Oxley, small firms have elected to go dark because of the costs ofcompliance. The costs to comply with Sarbox can be several million dollars, which can be a large percentage of a small firm’s profits. A major cost of going dark is less access to capital. Since the firm is no longer publicly traded, it can no longer raise money in the public market. Although the company will still have access to bank loans and the private equity market, the costs associated with raising funds in these markets are usually higher than the costs of raising funds in the public market.5.The treasurer’s office and the controller’s office are the two primary organizational groups thatreport directly to the chief financial officer. The controller’s office handles cost and financial accounting, tax management, and management information systems, while the treasurer’s office is responsible for cash and credit management, capital budgeting, and financial planning. Therefore, the study of corporate finance is concentrated within the treasury group’s fu nctions.6.To maximize the current market value (share price) of the equity of the firm (whether it’spubliclytraded or not).7. In the corporate form of ownership, the shareholders are the owners of the firm. The shareholderselect the directors of the corporation, who in turn appoint the firm’s management. This separation of ownership from control in the corporate form of organization is what causes agency problems to exist. Management may act in its own or someone else’s best interests, rather than th ose of the shareholders. If such events occur, they may contradict the goal of maximizing the share price of the equity of the firm.8. A primary market transaction.公司理财英文版第10版课后习题答案9.In auction markets like the NYSE, brokers and agents meet at a physical location (the exchange) tomatch buyers and sellers of assets. Dealer markets like NASDAQ consist of dealers operating at dispersed locales who buy and sell assets themselves, communicating with other dealers either electronically or literally over-the-counter.10.Such organizations frequently pursue social or political missions, so many different goals areconceivable. One goal that is often cited is revenue minimization; that is, provide whatever goods and services are offered at the lowest possible cost to society. A better approach might be to observe that even a not-for-profit business has equity. Thus, one answer is that the appropriate goal is to maximize the value of the equity.11.Presumably, the current stock value reflects the risk, timing, and magnitude of all future cash flows,both short-term and long-term. If this is correct, then the statement is false.12.An argument can be made either way. At the one extreme, we could argue that in a market economy,all of these things are priced. There is thus an optimal level of, for example, ethical and/or illegal behavior, and the framework of stock valuation explicitly includes these. At the other extreme, we could argue that these are noneconomic phenomena and are best handled through the political process. A classic (and highly relevant) thought question that illustrates this debate goes something like this: “A firm has estimated that the cost of improving the safety of one of its products is $30 million. However, the firm believes that improving the safety of the product will only save $20 million in product liability claims. What should the firm do?”13.The goal will be the same, but the best course of action toward that goal may be different because ofdiffering social, political, and economic institutions.14.The goal of management should be to maximize the share price for the current shareholders. Ifmanagement believes that it can improve the profitability of the firm so that the share price will exceed $35, then they should fight the offer from the outside company. If management believes that this bidder or other unidentified bidders will actually pay more than $35 per share to acquire the company, then they should still fight the offer. However, if the current management cannot increase the value of the firm beyond the bid price, and no other higher bids come in, then management is not acting in the interests of the shareholders by fighting the offer. Since current managers often lose their jobs when the corporation is acquired, poorly monitored managers have an incentive to fight corporate takeovers in situations such as this.15.We would expect agency problems to be less severe in countries with a relatively small percentageof individual ownership. Fewer individual owners should reduce the number of diverse opinions concerning corporate goals. The high percentage of institutional ownership might lead to a higher degree of agreement between owners and managers on decisions concerning risky projects. In addition, institutions may be better able to implement effective monitoring mechanisms on managers than can individual owners, based on the institutions’ deeper resources and experiences with their own management. The increase in institutional ownership of stock in the United States and the growing activism of these large shareholder groups may lead to a reduction in agency problems for U.S. corporations and a more efficient market for corporate control.16. How much is too much? Who is worth more, Lawrence Ellison or Tiger Woods? The simplestanswer is that there is a market for executives just as there is for all types of labor. Executive compensation is the price that clears the market. The same is true for athletes and performers.Having said that, one aspect of executive compensation deserves comment. A primary reason executive compensation has grown so dramatically is that companies have increasingly moved to stock-based compensation. Such movement is obviously consistent with the attempt to better align stockholder and management interests. In recent years, stock prices have soared, so management has cleaned up. It is sometimes argued that much of this reward is simply due to rising stock prices in general, not managerial performance. Perhaps in the future, executive compensation will be designed to reward only differential performance, that is, stock price increases in excess of general market increases.公司理财英文版第10版课后习题答案CHAPTER 2FINANCIAL STATEMENTS, TAXES, AND CASH FLOWAnswers to Concepts Review and Critical Thinking Questions1.Liquidity measures how quickly and easily an asset can be converted to cash without significant lossin value. It’s desirable for firms to have high liquidity so that they have a large factor of safety in meeting short-term creditor demands. However, since liquidity also has an opportunity cost associated with it—namely that higher returns can generally be found by investing the cash into productive assets—low liquidity levels are also desirable to the firm. It’s up to the firm’s financial management staff to find a reasonable compromise between these opposing needs.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 process 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.Historical costs can be objectively and precisely measured whereas market values can be difficult toestimate, and different analysts would come up with different numbers. Thus, there is a trade-off between relevance (market values) and objectivity (book values).4. Depreciation is a noncash deduction that reflects adjustments made in asset book values inaccordance with the matching principle in financial accounting. Interest expense is a cash outlay, but it’s a financing cost, not an operating cost.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, 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 it 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, its cash flow to 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.11.Enterprise value is the theoretical takeover price. In the event of a takeover, an acquirer would haveto take on the company's debt but would pocket its cash. Enterprise value differs significantly from simple market capitalization in several ways, and it may be a more accurate representation of a firm's value. In a takeover, the value of a firm's debt would need to be paid by the buyer when taking overa company. This enterprise value provides a much more accurate takeover valuation because itincludes debt in its value calculation.12.In general, it appears that investors prefer companies that have a steady earnings stream. If true, thisencourages companies to manage earnings. Under GAAP, there are numerous choices for the way a company reports its financial statements. Although not the reason for the choices under GAAP, one outcome is the ability of a company to manage earnings, which is not an ethical decision. Even though earnings and cash flow are often related, earnings management should have little effect on cash flow (except for tax implications). If the market is “fooled” and prefers steady earnings, shareholder wealth can be increased, at least temporarily. However, given the questionable ethics of this practice, the company (and shareholders) will lose value if the practice is discovered. 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 $ 4,800 CL $ 4,200NFA 27,500 LTD 10,500OE ??TA $32,300 TL & OE $32,300We know that total liabilities and owners’ equity (TL & OE) must equal total assets of $32,300.We also know that TL & OE is equal to current liabilities plus long-term debt plus owners’ equity, so owners’ equity is:OE = $32,300 – 10,500 – 4,200 = $17,600NWC = CA – CL = $4,800 – 4,200 = $600公司理财英文版第10版课后习题答案2. The income statement for the company is:Income StatementSales $734,000Costs 315,000Depreciation 48,000EBIT $371,000Interest 35,000EBT $336,000Taxes (35%) 117,600Net income $218,4003.One equation for net income is:Net income = Dividends + Addition to retained earningsRearranging, we get:Addition to retained earnings = Net income – Dividends = $218,400 – 85,000 = $133,4004.EPS = Net income / Shares = $218,400 / 110,000 = $1.99 per shareDPS = Dividends / Shares = $85,000 / 110,000 = $0.77 per share5.To find the book value of current assets, we use: NWC = CA –CL. Rearranging to solve forcurrent assets, we get:CA = NWC + CL = $215,000 + 900,000 = $1,115,000The market value of current assets and fixed assets is given, so:Book value CA = $1,115,000 Market value CA = $1,250,000Book value NFA = $3,200,000 Market value NFA = $5,300,000Book value assets = $4,315,000 Market value assets = $6,550,0006.Taxes = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($255,000 – 100,000) = $82,7007.The average tax rate is the total tax paid divided by taxable income, so:Average tax rate = $82,700 / $255,000 = .3243, or 32.43%The marginal tax rate is the tax rate on the next $1 of earnings, so the marginal tax rate = 39%.8.To calculate OCF, we first need the income statement:Income StatementSales $39,500Costs 18,400Depreciation 1,900EBIT $19,200Interest 1,400Taxable income $17,800Taxes (35%) 6,230Net income $11,570OCF = EBIT + Depreciation – Taxes = $19,200 + 1,900 – 6,230 = $14,870 capital spending = NFA end– NFA beg + DepreciationNet capital spending = $3,600,000 – 2,800,000 + 345,000Net capital spending = $1,145,00010. Change in NWC = NWC end– NWC begChange in NWC = (CA end– CL end) – (CA beg– CL beg)Change in NWC = ($3,460 – 1,980) – ($3,120 – 1,570)Change in NWC = $1,480 – 1,550 = –$7011.Cash flow to creditors = Interest paid – Net new borrowingCash flow to creditors = Interest paid – (LTD end– LTD beg)Cash flow to creditors = $190,000 – ($2,550,000 – 2,300,000)Cash flow to creditors = –$60,00012. Cash flow to stockholders = Dividends paid – Net new equityCash flow to stockholders = Dividends paid – [(Common end + APIS end) – (Common beg + APIS beg)] Cash flow to stockholders = $540,000 – [($715,000 + 4,700,000) – ($680,000 + 4,300,000)]Cash flow to stockholders = $105,000Note, APIS is the additional paid-in surplus.13. Cash flow from assets = Cash flow to creditors + Cash flow to stockholders= –$60,000 + 105,000 = $45,000Cash flow from assets = $45,000 = OCF – Change in NWC – Net capital spending= $45,000 = OCF – (–$55,000) – 1,300,000Operating cash flow = $45,000 – 55,000 + 1,300,000Operating cash flow = $1,290,000公司理财英文版第10版课后习题答案Intermediate14.To find the OCF, we first calculate net income.Income StatementSales $235,000Costs 141,000Other expenses 7,900Depreciation 17,300EBIT $ 68,800Interest 12,900Taxable income $ 55,900Taxes 19,565Net income $ 36,335Dividends $12,300Additions to RE $24,035a.OCF = EBIT + Depreciation – Taxes = $68,800 + 17,300 – 19,565 = $66,535b.CFC = Interest – Net new LTD = $12,900 – (–4,500) = $17,400Note that the net new long-term debt is negative because the company repaid part of its long-term debt.c.CFS = Dividends – Net new equity = $12,300 – 6,100 = $6,200d.We know that CFA = CFC + CFS, so:CFA = $17,400 + 6,200 = $23,600CFA 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 + Depreciation = $25,000 + 17,300 = $42,300Now we can use:CFA = OCF – Net capital spending – Change in NWC$23,600 = $66,535 – 42,300 – Change in NWCChange in NWC = $635This means that the company increased its NWC by $635.15.The solution to this question works the income statement backwards. Starting at the bottom:Net income = Dividends + Addition to retained earnings = $1,800 + 5,300 = $7,100Now, 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) = $7,100 / (1 – 0.35) = $10,923Now you can calculate:EBIT = EBT + Interest = $10,923 + 4,900 = $15,823The last step is to use:EBIT = Sales – Costs – Depreciation$15,823 = $52,000 – 27,300 – DepreciationSolving for depreciation, we find that depreciation = $8,87716.The balance sheet for the company looks like this:Balance SheetCash $ 127,000 Accounts payable $ 210,000Accounts receivable 105,000 Notes payable 160,000Inventory 293,000 Current liabilities $ 370,000Current assets $ 525,000 Long-term debt 845,000Total liabilities $1,215,300 Tangible net fixed assets 1,620,000Intangible net fixed assets 630,000 Common stock ??Accumulated ret. earnings 1,278,000 Total assets $2,775,000 Total liab. & owners’ equity$2,755,000Total liabilities and owners’ equity is:TL & OE = CL + LTD + Common stock + Retained earningsSolving for this equation for equity gives us:Common stock = $2,755,000 – 1,215,300 – 1,278,000 = $282,00017.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 $7,100, equity is equal to $1,300, and if TA is $5,200, equity is equal to $0. We should note here that the book value of shareholders’ equity can be negative.公司理财英文版第10版课后习题答案18. a. Taxes Growth = 0.15($50,000) + 0.25($25,000) + 0.34($1,000) = $14,090Taxes Income = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($235,000)+ 0.34($7,600,000 – 335,000)= $2,584,000b. 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.19.Income StatementSales $850,000COGS 610,000A&S expenses 110,000Depreciation 140,000EBIT –$10,000Interest 85,000Taxable income –$95,000Taxes (35%) 0 income –$95,000b.OCF = EBIT + Depreciation – Taxes = –$10,000 + 140,000 – 0 = $130,000 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.20. 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 capital spendingCash flow from assets = $130,000 – 0 – 0 = $130,000Cash flow to stockholders = Dividends – Net new equity = $63,000 – 0 = $63,000Cash flow to creditors = Cash flow from assets – Cash flow to stockholdersCash flow to creditors = $130,000 – 63,000 = $67,000Cash flow to creditors = Interest – Net new LTDNet new LTD = Interest – Cash flow to creditors = $85,000 – 67,000 = $18,00021. a.Income StatementSales $27,360Cost of goods sold 19,260Depreciation 4,860EBIT $ 3,240Interest 2,190Taxable income $ 1,050Taxes (34%) 357Net income $ 693b.OCF = EBIT + Depreciation – Taxes= $3,240 + 4,860 – 357 = $7,743c.Change in NWC = NWC end– NWC beg= (CA end– CL end) – (CA beg– CL beg)= ($7,116 – 3,780) – ($5,760 – 3,240)= $3,336 – 2,520 = $816Net capital spending = NFA end– NFA beg + Depreciation= $20,160 – 16,380 + 4,860 = $8,640CFA = OCF – Change in NWC – Net capital spending= $7,743 – 816 – 8,640 = –$1,713The cash flow from assets can be positive or negative, since it represents whether the firmraised funds or distributed funds on a net basis. In this problem, even though net income andOCF are positive, the firm invested heavily in both fixed assets and net working capital; ithad to raise a net $1,713 in funds from its stockholders and creditors to make theseinvestments.d.Cash flow to creditors = Interest – Net new LTD = $2,190 – 0 = $2,190Cash flow to stockholders = Cash flow from assets – Cash flow to creditors= –$1,713 – 2,190 = –$3,903We 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 = $1,560 – (–3,903) = $5,463The firm had positive earnings in an accounting sense (NI > 0) and had positive cash flowfrom operations. The firm invested $816 in new net working capital and $8,640 in new fixedassets. The firm had to raise $1,713 from its stakeholders to support this new investment. Itaccomplished this by raising $5,463 in the form of new equity. After paying out $1,560 ofthis in the form of dividends to shareholders and $2,190 in the form of interest to creditors,$1,713 was left to meet the firm’s cash flow needs for investment.22. a.Total assets 2010 = $914 + 3,767 = $4,681Total liabilities 2010 = $365 + 1,991= $2,356Owners’ equity 2010 = $4,681 – 2,356 = $2,325Total assets 2011 = $990 + 4,536 = $5,526Total liabilities 2011 = $410 + 2,117 = $2,527Owners’ equity 2011 = $5,526 – 2,527 = $2,999b.NWC 2010 = CA10 – CL10 = $914 – 365 = $549NWC 2011 = CA11 – CL11 = $990 – 410 = $580Change in NWC = NWC11 – NWC10 = $580 – 549 = $31公司理财英文版第10版课后习题答案c.We can calculate net capital spending as:Net capital spending = Net fixed assets 2011 – Net fixed assets 2010 + DepreciationNet capital spending = $4,536 – 3,767 + 1,033 = $1,802So, the company had a net capital spending cash flow of $1,802. We also know that netcapital spending is:Net capital spending = Fixed assets bought – Fixed assets sold$1,802 = $1,890 – Fixed assets soldFixed assets sold = $1,890 – 1,802 = $88To calculate the cash flow from assets, we must first calculate the operating cash flow. Theincome statement is:Income StatementSales $11,592Costs 5,405Depreciation expense 1,033EBIT $ 5,154Interest expense 294EBT $ 4,860Taxes (35%) 1,701Net income $ 3,159So, the operating cash flow is:OCF = EBIT + Depreciation – Taxes = $5,154 + 1,033 – 1,701 = $4,486And the cash flow from assets is:Cash flow from assets = OCF – Change in NWC – Net capital spending.= $4,486 – 31 – 1,802 = $2,653 new borrowing = LTD11 – LTD10 = $2,117 – 1,991 = $126Cash flow to creditors = Interest – Net new LTD = $294 – 126 = $168Net new borrowing = $126 = Debt issued – Debt retiredDebt retired = $378 – 126 = $252Challenge 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 beg24. 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.Taxes = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + 0.39($235,000) = $113,900Average tax rate = $113,900 / $335,000 = 34%The marginal tax rate on the next dollar of income is 34 percent.For corporate taxable income levels of $335,000 to $10 million, average tax rates are equal tomarginal tax rates.Taxes = 0.34($10,000,000) + 0.35($5,000,000) + 0.38($3,333,333)= $6,416,667Average tax rate = $6,416,667 / $18,333,333 = 35%The marginal tax rate on the next dollar of income is 35 percent. For corporate taxableincome levels over $18,333,334, average tax rates are again equal to marginal tax rates.c.Taxes = 0.34($200,000) = $68,000$68,000 = 0.15($50,000) + 0.25($25,000) + 0.34($25,000) + X($100,000);X($100,000) = $68,000 – 22,250X = $45,750 / $100,000X = 45.75%25.Balance sheet as of Dec. 31, 2010Cash $ 6,067 Accounts payable $ 4,384Accounts receivable 8,034 Notes payable 1,171Inventory 14,283 Current liabilities $ 5,555Current assets $28,384Long-term debt $20,320 Net fixed assets $50,888 Owners' equity $53,397Total assets $79,272 Total liab. & equity $79,272Balance sheet as of Dec. 31, 2011Cash $ 6,466 Accounts payable $ 4,644Accounts receivable 9,427 Notes payable 1,147Inventory 15,288 Current liabilities $ 5,791Current assets $31,181Long-term debt $24,636 Net fixed assets $54,273 Owners' equity $55,027Total assets $85,454 Total liab. & equity $85,454公司理财英文版第10版课后习题答案2010 Income Statement 2011 Income Statement Sales $11,573.00Sales $12,936.00 COGS 3,979.00COGS 4,707.00 Other expenses 946.00Other expenses 824.00 Depreciation 1,661.00Depreciation 1,736.00 EBIT $ 4,987.00EBIT $ 5,669.00 Interest 776.00Interest 926.00 EBT $ 4,211.00EBT $ 4,743.00 Taxes (34%) 1,431.74Taxes (34%) 1,612.62 Net income $ 2,779.26Net income $ 3,130.38 Dividends $1,411.00Dividends $1,618.00 Additions to RE 1,368.26Additions to RE 1,512.3826.OCF = EBIT + Depreciation – Taxes = $5,669 + 1,736 – 1,612.62 = $5,792.38Change in NWC = NWC end– NWC beg = (CA – CL) end– (CA – CL) beg= ($31,181 – 5,791) – ($28,384 – 5,555)= $2,561Net capital spending = NFA end– NFA beg+ Depreciation= $54,273 – 50,888 + 1,736 = $5,121Cash flow from assets = OCF – Change in NWC – Net capital spending= $5,792.38 – 2,561 – 5,121 = –$1,889.62Cash flow to creditors = Interest – Net new LTDNet new LTD = LTD end– LTD begCash flow to creditors = $926 – ($24,636 – 20,320) = –$3,390Net new equity = Common stock end– Common stock begCommon stock + Retained earnings = Tota l owners’ equityNet new equity = (OE – RE) end– (OE – RE) beg= OE end– OE beg + RE beg– RE endRE end= RE beg+ Additions to RE08Net new equity = OE end– OE beg+ RE beg– (RE beg + Additions to RE11)= OE end– OE beg– Additions to RENet new equity = $55,027 – 53,397 – 1,512.38 = $117.62CFS = Dividends – Net new equityCFS = $1,618 – 117.62 = $1,500.38As a check, cash flow from assets is –$1,889.62.CFA = Cash flow from creditors + Cash flow to stockholdersCFA = –$3,390 + 1,500.38 = –$1,889.62公司理财英文版第10版课后习题答案CHAPTER 3WORKING WITH FINANCIAL STATEMENTSAnswers to Concepts Review and Critical Thinking Questions1. a.If inventory is purchased with cash, then there is no change in the current ratio. If inventory ispurchased on credit, then there is a decrease in the current ratio if it was initially greater than 1.0.b.Reducing accounts payable with cash increases the current ratio if it was initially greater than 1.0.c.Reducing short-term debt with cash increases the current ratio if it was initially greater than 1.0.d.As long-term debt approaches maturity, the principal repayment and the remaining interestexpense become current liabilities. Thus, if debt is paid off with cash, the current ratio increases if it was initially greater than 1.0. If the debt has not yet become a current liability, then paying it off will reduce the current ratio since current liabilities are not affected.e.Reduction of accounts receivables and an increase in cash leaves the current ratio unchanged.f.Inventory sold at cost reduces inventory and raises cash, so the current ratio is unchanged.g. Inventory sold for a profit raises cash in excess of the inventory recorded at cost, so the currentratio increases.2.The firm has increased inventory relative to other current assets; therefore, assuming current liabilitylevels remain unchanged, liquidity has potentially decreased.3. A current ratio of 0.50 means that the firm has twice as much in current liabilities as it does incurrent assets; the firm potentially has poor liquidity. If pressed by its short-term creditors and suppliers for immediate payment, the firm might have a difficult time meeting its obligations. A current ratio of 1.50 means the firm has 50% more current assets than it does current liabilities. This probably represents an improvement in liquidity; short-term obligations can generally be met completely with a safety factor built in. A current ratio of 15.0, however, might be excessive. Any excess funds sitting in current assets generally earn little or no return. These excess funds might be put to better use by investing in productive long-term assets or distributing the funds to shareholders.4. a.Quick ratio provides a measure of the short-term liquidity of the firm, after removing the effectsof inventory, generally the least liquid of the firm’s current assets.b.Cash ratio represents the ability of the firm to completely pay off its current liabilities with itsmost liquid asset (cash).c.Total asset turnover measures how much in sales is generated by each dollar of firm assets.d.Equity multiplier represents the degree of leverage for an equity investor of the firm; it measuresthe dollar worth of firm assets each equity dollar has a claim to.e.Long-term debt ratio measures the percentage of total firm capitalization funded by long-termdebt.。