罗期公司理财原书第七版GoodWeekTiresSolution
罗斯公司理财课件
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权益合计 负债和股东权益总计
第二章
财务报表和现金流量
McGraw-Hill/Irwin
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
主要概念和方法
理解财务报表所提供的信息 区分账面和市场价值 辨别平均和边际税率 知道会计利润和现金流量的差别 计算一家企业的现金流量
Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
U.S.C.C.损益表
损益表的经营活 动部分报告企业 来自主营业务的 收入和费用。
营业总收入 销货成本 销售、行政和管理费用 折旧 营业利润 其他收入 息前税前利润 利息费用 税前利润 所得税 当前：$71 递延：$13 净利润 留存收益增加 股利 $2,262 1,655 327 90 $190 29 $219 49 $170 84
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Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
资产负债表分析
当分析一张资产负债表时，财务经理应留 意三个要点：
1. 2. 3.
会计流动性 负债与权益 市价与成本
McGraw-Hill/Irwin
McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
罗斯公司理财原书第七版全套
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。
现在的管理层经常在公司面临这些恶意收购的情况时迷失自己的方向。
7.其他国家的代理问题并不严重,主要取决于其他国家的私人投资者占比重较小。
较少的私人投资者能减少不同的企业目标。
高比重的机构所有权导致高学历的股东和管理层讨论决策风险项目。
此外,机构投资者比私人投资者可以根据自己的资源和经验更好地对管理层实施有效的监督机制。
公司理财第七版Chap001
Agency Problems
• Managers are agents for stockholders, but the managers may act in their own interests rather than maximizing value
Shareholders vs. Stakeholders
1-13
Role of the Financial Manager
Firm’s Operations
(2) (1)
Investors
Financial Manager
(3)(4a)来自Real assets(4b)
Financial Assets 1. Cash raised from investors (how?) 2. Cash invested in firm 3. Cash generated by operations 4A. Cash reinvested in the firm 4B. Cash returned to investors
1-14
The Financial Manager
Most large companies have 3 top-level financial managers:
1-15
Appendix: Careers in Finance
1-16
GE borrows $400 million from bond investors. Microsoft issues 100 million shares to buy a small technology company.
1-4
What is a Corporation?
罗斯《公司理财CorporateFinance》(第七版)英文课件Ch
If how you slice the pie affects the size of the pie, then the capital struቤተ መጻሕፍቲ ባይዱture decision matters.
1-9
Hypothetical Organization Chart
Board of Directors Chairman of the Board and Chief Executive Officer (CEO)
Shareholders’ Equity
1-5
The Balance-Sheet Model
of the Firm
The Capital Budgeting Decision
Current
Current Assets
Liabilities
Long-Term Debt
Fixed Assets 1 Tangible 2 Intangible
Cost Accounting Data Processing
1-10
The Financial Manager
To create value, the financial manager should: 1. Try to make smart investment decisions. 2. Try to make smart financing decisions.
How much shortterm cash flow does a company need to pay its bills?
Shareholders’ Equity
1-8
Capital Structure
The value of the firm can be thought of as a pie.
英文版罗斯公司理财习题答案Chap009.doc
CHAPTER 9RISK ANALYSIS, REAL OPTIONS, AND CAPITAL BUDGETINGAnswers to Concepts Review and Critical Thinking Questions1.Forecasting risk is the risk that a poor decision is made because of errors in projected cash flows.The danger is greatest with a new product because the cash flows are probably harder to predict.2.With a sensitivity analysis, one variable is examined over a broad range of values. With a scenarioanalysis, all variables are examined for a limited range of values.3.It is true that if average revenue is less than average cost, the firm is losing money. This much of thestatement is therefore correct. At the margin, however, accepting a project with marginal revenue in excess of its marginal cost clearly acts to increase operating cash flow.4.From the shareholder perspective, the financial break-even point is the most important. A project canexceed the accounting and cash break-even points but still be below the financial break-even point.This causes a reduction in shareholder (your) wealth.5.The project will reach the cash break-even first, the accounting break-even next and finally thefinancial break-even. For a project with an initial investment and sales after, this ordering will always apply. The cash break-even is achieved first since it excludes depreciation. The accounting break-even is next since it includes depreciation. Finally, the financial break-even, which includes the time value of money, is achieved.6.Traditional NPV analysis is often too conservative because it ignores profitable options such as theability to expand the project if it is profitable, or abandon the project if it is unprofitable. The option to alter a project when it has already been accepted has a value, which increases the NPV of the project.7.The type of option most likely to affect the decision is the option to expand. If the country justliberalized its markets, there is likely the potential for growth. First entry into a market, whether an entirely new market, or with a new product, can give a company name recognition and market share.This may make it more difficult for competitors entering the market.8.Sensitivity analysis can determine how the financial break-even point changes when some factors(such as fixed costs, variable costs, or revenue) change.9.There are two sources of value with this decision to wait. Potentially, the price of the timber canpotentially increase, and the amount of timber will almost definitely increase, barring a natural catastrophe or forest fire. The option to wait for a logging company is quite valuable, and companies in the industry have models to estimate the future growth of a forest depending on its age.10.When the additional analysis has a negative NPV. Since the additional analysis is likely to occuralmost immediately, this means when the benefits of the additional analysis outweigh the costs. The benefits of the additional analysis are the reduction in the possibility of making a bad decision. Of course, the additional benefits are often difficult, if not impossible, to measure, so much of this decision is based on experience.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. To calculate the accounting breakeven, we first need to find the depreciation for each year. Thedepreciation is:Depreciation = $896,000/8Depreciation = $112,000 per yearAnd the accounting breakeven is:Q A = ($900,000 + 112,000)/($38 – 25)Q A = 77,846 unitsb.We will use the tax shield approach to calculate the OCF. The OCF is:OCF base = [(P – v)Q – FC](1 – t c) + t c DOCF base = [($38 – 25)(100,000) – $900,000](0.65) + 0.35($112,000)OCF base = $299,200Now we can calculate the NPV using our base-case projections. There is no salvage value or NWC, so the NPV is:NPV base = –$896,000 + $299,200(PVIFA15%,8)NPV base = $446,606.60To calculate the sensitivity of the NPV to changes in the quantity sold, we will calculate the NPV at a different quantity. We will use sales of 105,000 units. The NPV at this sales level is:OCF new = [($38 – 25)(105,000) – $900,000](0.65) + 0.35($112,000)OCF new = $341,450And the NPV is:NPV new = –$896,000 + $341,450(PVIFA15%,8)NPV new = $636,195.93So, the change in NPV for every unit change in sales is:∆NPV/∆S = ($636,195.93 – 446,606.60)/(105,000 – 100,000)∆NPV/∆S = +$37.918If sales were to drop by 100 units, then NPV would drop by:NPV drop = $37.918(100) = $3,791.80You may wonder why we chose 105,000 units. Because it doesn’t matter! Whatever sales number we use, when we calculate the change in NPV per unit sold, the ratio will be the same.c.To find out how sensitive OCF is to a change in variable costs, we will compute the OCF at avariable cost of $24. Again, the number we choose to use here is irrelevant: We will get the same ratio of OCF to a one dollar change in variable cost no matter what variable cost we use.So, using the tax shield approach, the OCF at a variable cost of $24 is:OCF new = [($38 – 24)(100,000) – 900,000](0.65) + 0.35($112,000)OCF new = $364,200So, the change in OCF for a $1 change in variable costs is:∆OCF/∆v = ($299,200 – 364,200)/($25 – 24)∆OCF/∆v = –$65,000If variable costs decrease by $5 then, OCF would increase byOCF increase = $65,000*5 = $325,0002.We will use the tax shield approach to calculate the OCF for the best- and worst-case scenarios. Forthe best-case scenario, the price and quantity increase by 10 percent, so we will multiply the base case numbers by 1.1, a 10 percent increase. The variable and fixed costs both decrease by 10 percent, so we will multiply the base case numbers by .9, a 10 percent decrease. Doing so, we get:OCF best = {[($38)(1.1) – ($25)(0.9)](100K)(1.1) – $900K(0.9)}(0.65) + 0.35($112K)OCF best = $892,650The best-case NPV is:NPV best = –$896,000 + $892,650(PVIFA15%,8)NPV best = $3,109,607.54For the worst-case scenario, the price and quantity decrease by 10 percent, so we will multiply the base case numbers by .9, a 10 percent decrease. The variable and fixed costs both increase by 10 percent, so we will multiply the base case numbers by 1.1, a 10 percent increase. Doing so, we get: OCF worst = {[($38)(0.9) – ($25)(1.1)](100K)(0.9) – $900K(1.1)}(0.65) + 0.35($112K)OCF worst = –212,350The worst-case NPV is:NPV worst = –$896,000 – $212,350(PVIFA15%,8)NPV worst = –$1,848,882.723.We can use the accounting breakeven equation:Q A = (FC + D)/(P – v)to solve for the unknown variable in each case. Doing so, we find:(1): Q A = 130,200 = (€850,000 + D)/(€41 – 30)D = €582,200(2): Q A = 135,000 = (€3.2M + 1.15M)/(P –€56)P = €88.22(3): Q A = 5,478 = (€160,000 + 105,000)/(€105 – v)v = €56.624.When calculating the financial breakeven point, we express the initial investment as an equivalentannual cost (EAC). Dividing the in initial investment by the seven-year annuity factor, discounted at12 percent, the EAC of the initial investment is:EAC = Initial Investment / PVIFA12%,5EAC = £200,000 / 3.60478EAC = £55,481.95Note, this calculation solves for the annuity payment with the initial investment as the present value of the annuity, in other words:PVA = C({1 – [1/(1 + R)]t } / R)£200,000 = C{[1 – (1/1.12)5 ] / .12}C = £55,481.95The annual depreciation is the cost of the equipment divided by the economic life, or:Annual depreciation = £200,000 / 5Annual depreciation = £40,000Now we can calculate the financial breakeven point. The financial breakeven point for this project is: Q F = [EAC + FC(1 – t C) – Depreciation(t C)] / [(P – VC)(1 – t C)]Q F = [£55,481.95 + £350,000(.75) – £40,000(0.25)] / [(£25 – 5) (.25)]Q F = 20,532.13 or about 20,532 units5.If we purchase the machine today, the NPV is the cost plus the present value of the increased cashflows, so:NPV0 = –฿1,500,000 + ฿280,000(PVIFA12%,10)NPV0 = ฿82,062.45We should not purchase the machine today. We would want to purchase the machine when the NPV is the highest. So, we need to calculate the NPV each year. The NPV each year will be the cost plus the present value of the increased cash savings. We must be careful however. In order to make the correct decision, the NPV for each year must be taken to a common date. We will discount all of the NPVs to today. Doing so, we get:Year 1: NPV1 = [–฿1,375,000 + ฿280,000(PVIFA12%,9)] / 1.12NPV1 = ฿104,383.88Year 2: NPV2 = [–฿1,250,000 + ฿280,000(PVIFA12%,8)] / 1.122NPV2 = ฿112,355.82Year 3: NPV3 = [–฿1,125,000 + ฿280,000(PVIFA12%,7)] / 1.123NPV3 = ฿108,796.91Year 4: NPV4 = [–฿1,000,000 + ฿280,000(PVIFA12%,6)] / 1.124NPV4 = ฿96,086.55Year 5: NPV5 = [–฿1,000,000 + ฿280,000(PVIFA12%,5)] / 1.125NPV5 = ฿5,298.26Year 6: NPV6 = [–฿1,000,000 + ฿280,000(PVIFA12%,4)] / 1.126NPV6 = –฿75,762.72The company should purchase the machine two years from now when the NPV is the highest.6.We need to calculate the NPV of the two options, go directly to market now, or utilize test marketingfirst. The NPV of going directly to market now is:NPV = C Success (Prob. of Success) + C Failure (Prob. of Failure)NPV = $20,000,000(0.45) + $5,000,000(0.55)NPV = $11,750,000Now we can calculate the NPV of test marketing first. Test marketing requires a $2 million cashoutlay. Choosing the test marketing option will also delay the launch of the product by one year.Thus, the expected payoff is delayed by one year and must be discounted back to year 0.NPV= C0 + {[C Success (Prob. of Success)] + [C Failure (Prob. of Failure)]} / (1 + R)tNPV = –$2,000,000 + {[$20,000,000 (0.75)] + [$5,000,000 (0.25)]} / 1.15NPV = $12,130,434.78The company should not go directly to market with the product since that option has lower expected payoff.7.We need to calculate the NPV of each option, and choose the option with the highest NPV. So, theNPV of going directly to market is:NPV = C Success (Prob. of Success)NPV = Rs.1,200,000 (0.55)NPV = Rs.660,000The NPV of the focus group is:NPV = C0 + C Success (Prob. of Success)NPV = –Rs.120,000 + Rs.1,200,000 (0.70)NPV = Rs.720,000And the NPV of using the consulting firm is:NPV = C0 + C Success (Prob. of Success)NPV = –Rs.400,000 + Rs.1,200,000 (0.90)NPV = Rs.680,000The firm should conduct a focus group since that option has the highest NPV.8.The company should analyze both options, and choose the option with the greatest NPV. So, if thecompany goes to market immediately, the NPV is:NPV = C Success (Prob. of Success) + C Failure (Prob. of Failure)NPV = ₦30,000,000(.55) + ₦3,000,000(.45)NPV = ₦17,850,000.00Customer segment research requires a ₦1 million cash outlay. Choosing the research option will also delay the launch of the product by one year. Thus, the expected payoff is delayed by one year and must be discounted back to year 0. So, the NPV of the customer segment research is:NPV= C0 + {[C Success (Prob. of Success)] + [C Failure (Prob. of Failure)]} / (1 + R)tNPV = –₦1,000,000 + {[₦30,000,000 (0.70)] + [₦3,000,000 (0.30)]} / 1.15NPV = ₦18,043,478.26Graphically, the decision tree for the project is:₦3 million at t = 0The company should undertake the market segment research since it has the largest NPV.9. a.The accounting breakeven is the aftertax sum of the fixed costs and depreciation charge dividedby the aftertax contribution margin (selling price minus variable cost). So, the accounting breakeven level of sales is:Q A = [(FC + Depreciation)(1 – t C)] / [(P – VC)(1 – t C)]Q A = [($340,000 + $20,000) (1 – 0.35)] / [($2.00 – 0.72) (1 – 0.35)]Q A = 281,250.00b.When calculating the financial breakeven point, we express the initial investment as anequivalent annual cost (EAC). Dividing the in initial investment by the seven-year annuity factor, discounted at 15 percent, the EAC of the initial investment is:EAC = Initial Investment / PVIFA15%,7EAC = $140,000 / 4.1604EAC = $33,650.45Note, this calculation solves for the annuity payment with the initial investment as the presentvalue of the annuity, in other words:PVA = C({1 – [1/(1 + R)]t } / R)$140,000 = C{[1 – (1/1.15)7 ] / .15}C = $33,650.45Now we can calculate the financial breakeven point. The financial breakeven point for this project is:Q F = [EAC + FC(1 – t C) – Depreciation(t C)] / [(P – VC)(1 – t C)]Q F = [$33,650.45 + $340,000(.65) – $20,000(.35)] / [($2 – 0.72) (.65)]Q F = 297,656.79 or about 297,657 units10.When calculating the financial breakeven point, we express the initial investment as an equivalentannual cost (EAC). Dividing the in initial investment by the five-year annuity factor, discounted at 8 percent, the EAC of the initial investment is:EAC = Initial Investment / PVIFA8%,5EAC = ¥300,000 / 3.60478EAC = ¥75,136.94Note, this calculation solves for the annuity payment with the initial investment as the present value of the annuity, in other words:PVA = C({1 – [1/(1 + R)]t } / R)¥300,000 = C{[1 – (1/1.08)5 ] / .08}C = ¥75,136.94The annual depreciation is the cost of the equipment divided by the economic life, or:Annual depreciation = ¥300,000 / 5Annual depreciation = ¥60,000Now we can calculate the financial breakeven point. The financial breakeven point for this project is: Q F = [EAC + FC(1 – t C) – Depreciation(t C)] / [(P – VC)(1 – t C)]Q F = [¥75,136.94 + ¥100,000(.66) – ¥60,000(0.34)] / [(¥60 – 8) (.34)]Q F = 3,517.98 or about 3,518 unitsIntermediate11.a. At the accounting breakeven, the IRR is zero percent since the project recovers the initialinvestment. The payback period is N years, the length of the project since the initial investmentis exactly recovered over the project life. The NPV at the accounting breakeven is:NPV = I [(1/N)(PVIFA R%,N) – 1]b. At the cash breakeven level, the IRR is –100 percent, the payback period is negative, and theNPV is negative and equal to the initial cash outlay.c. The definition of the financial breakeven is where the NPV of the project is zero. If this is true,then the IRR of the project is equal to the required return. It is impossible to state the paybackperiod, except to say that the payback period must be less than the length of the project. Sincethe discounted cash flows are equal to the initial investment, the undiscounted cash flows aregreater than the initial investment, so the payback must be less than the project life.ing the tax shield approach, the OCF at 110,000 units will be:OCF = [(P – v)Q – FC](1 – t C) + t C(D)OCF = [($28 – 19)(110,000) – 150,000](0.66) + 0.34($420,000/4)OCF = $590,100We will calculate the OCF at 111,000 units. The choice of the second level of quantity sold is arbitrary and irrelevant. No matter what level of units sold we choose, we will still get the same sensitivity. So, the OCF at this level of sales is:OCF = [($28 – 19)(111,000) – 150,000](0.66) + 0.34($420,000/4)OCF = $596,040The sensitivity of the OCF to changes in the quantity sold is:Sensitivity = ∆OCF/∆Q = ($596,040 – 590,100)/(111,000 – 110,000)∆OCF/∆Q = +$5.94OCF will increase by $5.94 for every additional unit sold.13.a. The base-case, best-case, and worst-case values are shown below. Remember that in the best-case, sales and price increase, while costs decrease. In the worst-case, sales and price decrease,and costs increase.Scenario Unit sales Variable cost Fixed costsBase 190 元15,000 元225,000Best 209 元13,500 元202,500Worst 171 元16,500 元247,500Using the tax shield approach, the OCF and NPV for the base case estimate is:OCF base = [(元21,000 – 15,000)(190) –元225,000](0.65) + 0.35(元720,000/4)OCF base = 元657,750NPV base = –元720,000 + 元657,750(PVIFA15%,4)NPV base = 元1,157,862.02The OCF and NPV for the worst case estimate are:OCF worst = [(元21,000 – 16,500)(171) –元247,500](0.65) + 0.35(元720,000/4)OCF worst = 元402,300NPV worst = –元720,000 + 元402,300(PVIFA15%,4)NPV worst = +元428,557.80And the OCF and NPV for the best case estimate are:OCF best = [(元21,000 – 13,500)(209) –元202,500](0.65) + 0.35(元720,000/4)OCF best = 元950,250NPV best = –元720,000 + 元950,250(PVIFA15%,4)NPV best = 元1,992,943.19b. To calculate the sensitivity of the NPV to changes in fixed costs we choose another level offixed costs. We will use fixed costs of 元230,000. The OCF using this level of fixed costs and the other base case values with the tax shield approach, we get:OCF = [(元21,000 – 15,000)(190) –元230,000](0.65) + 0.35(元720,000/4)OCF = 元654,500And the NPV is:NPV = –元720,000 + 元654,500(PVIFA15%,4)NPV = 元1,148,583.34The sensitivity of NPV to changes in fixed costs is:∆NPV/∆FC = (元1,157,862.02 – 1,148,583.34)/(元225,000 – 230,000)∆NPV/∆FC = –元1.856For every dollar FC increase, NPV falls by 元1.86.c. The accounting breakeven is:Q A= (FC + D)/(P – v)Q A = [元225,000 + (元720,000/4)]/(元21,000 – 15,000)Q A = 68At the accounting breakeven, the DOL is:DOL = 1 + FC/OCFDOL = 1 + (元225,000/元180,000) = 2.25For each 1% increase in unit sales, OCF will increase by 2.25%.14.The marketing study and the research and development are both sunk costs and should be ignored.We will calculate the sales and variable costs first. Since we will lose sales of the expensive clubs and gain sales of the cheap clubs, these must be accounted for as erosion. The total sales for the new project will be:SalesNew clubs €700 ⨯ 55,000 = €38,500,000Exp. clubs €1,100 ⨯ (–13,000) = –14,300,000Cheap clubs €400 ⨯ 10,000 = 4,000,000€28,200,000For the variable costs, we must include the units gained or lost from the existing clubs. Note that the variable costs of the expensive clubs are an inflow. If we are not producing the sets anymore, we will save these variable costs, which is an inflow. So:Var. costsNew clubs –€320 ⨯ 55,000 = –€17,600,000Exp. clubs –€600 ⨯ (–13,000) = 7,800,000Cheap clubs –€180 ⨯ 10,000 = –1,800,000–€11,600,000The pro forma income statement will be:Sales €28,200,000Variable costs 11,600,000Costs 7,500,000Depreciation 2,600,000EBT 6,500,000Taxes 2,600,000Net income € 3,900,000Using the bottom up OCF calculation, we get:OCF = NI + Depreciation = €3,900,000 + 2,600,000OCF = €6,500,000So, the payback period is:Payback period = 2 + €6.15M/€6.5MPayback period = 2.946 yearsThe NPV is:NPV = –€18.2M – .95M + €6.5M(PVIFA14%,7) + €0.95M/1.147NPV = €9,103,636.91And the IRR is:IRR = –€18.2M – .95M + €6.5M(PVIFA IRR%,7) + €0.95M/IRR7IRR = 28.24%15.The upper and lower bounds for the variables are:Base Case Lower Bound Upper Bound Unit sales (new) 55,000 49,500 60,500Price (new) €700 €630 €770VC (new) €320 €288 €352Fixed costs €7,500,000 €6,750,000 €8,250,000Sales lost (expensive) 13,000 11,700 14,300Sales gained (cheap) 10,000 9,000 11,000 Best-caseWe will calculate the sales and variable costs first. Since we will lose sales of the expensive clubs and gain sales of the cheap clubs, these must be accounted for as erosion. The total sales for the new project will be:SalesNew clubs €770 ⨯ 60,500 = €46,585,000Exp. clubs €1,100 ⨯ (–11,700) = – 12,870,000Cheap clubs €400 ⨯ 11,000 = 4,400,000€38,115,000For the variable costs, we must include the units gained or lost from the existing clubs. Note that the variable costs of the expensive clubs are an inflow. If we are not producing the sets anymore, we will save these variable costs, which is an inflow. So:Var. costsNew clubs €288 ⨯ 60,500 = €17,424,000Exp. clubs €600 ⨯ (–11,700) = – 7,020,000Cheap clubs €180 ⨯ 11,000 = 1,980,000€12,384,000Sales €38,115,000Variable costs 12,384,000Costs 6,750,000Depreciation 2,600,000EBT 16,381,000Taxes 6,552,400Net income €9,828,600Using the bottom up OCF calculation, we get:OCF = Net income + Depreciation = €9,828,600 + 2,600,000OCF = €12,428,600And the best-case NPV is:NPV = –€18.2M – .95M + €12,428,600(PVIFA14%,7) + .95M/1.147NPV = €34,527,280.98Worst-caseWe will calculate the sales and variable costs first. Since we will lose sales of the expensive clubs and gain sales of the cheap clubs, these must be accounted for as erosion. The total sales for the new project will be:SalesNew clubs €630 ⨯ 49,500 = €31,185,000Exp. clubs €1,100 ⨯ (– 14,300) = – 15,730,000Cheap clubs €400 ⨯ 9,000 = 3,600,000€19,055,000For the variable costs, we must include the units gained or lost from the existing clubs. Note that the variable costs of the expensive clubs are an inflow. If we are not producing the sets anymore, we will save these variable costs, which is an inflow. So:Var. costsNew clubs €352 ⨯ 49,500 = €17,424,000Exp. clubs €600 ⨯ (– 14,300) = – 8,580,000Cheap clubs €180 ⨯ 9,000 = 1,620,000€10,464,000Sales €19,055,000Variable costs 10,464,000Costs 8,250,000Depreciation 2,600,000EBT – 2,259,000Taxes 903,600 *assumes a tax creditNet income –€1,355,400Using the bottom up OCF calculation, we get:OCF = NI + Depreciation = –€1,355,400 + 2,600,000OCF = €1,244,600And the worst-case NPV is:NPV = –€18.2M – .95M + €1,244,600(PVIFA14%,7) + .95M/1.147NPV = –€13,433,120.3416.To calculate the sensitivity of the NPV to changes in the price of the new club, we simply need tochange the price of the new club. We will choose €750, but the choice is irrelevant as the sensitivity will be the same no matter what price we choose.We will calculate the sales and variable costs first. Since we will lose sales of the expensive clubs and gain sales of the cheap clubs, these must be accounted for as erosion. The total sales for the new project will be:SalesNew clubs €750 ⨯ 55,000 = €41,250,000Exp. clubs €1,100 ⨯ (– 13,000) = –14,300,000Cheap clubs €400 ⨯ 10,000 = 4,000,000€30,950,000For the variable costs, we must include the units gained or lost from the existing clubs. Note that the variable costs of the expensive clubs are an inflow. If we are not producing the sets anymore, we will save these variable costs, which is an inflow. So:Var. costsNew clubs €320 ⨯ 55,000 = €17,600,000Exp. clubs €600 ⨯ (–13,000) = –7,800,000Cheap clubs €180 ⨯ 10,000 = 1,800,000€11,600,000Sales €30,950,000Variable costs 11,600,000Costs 7,500,000Depreciation 2,600,000EBT 9,250,000Taxes 3,700,000Net income € 5,550,000Using the bottom up OCF calculation, we get:OCF = NI + Depreciation = €5,550,000 + 2,600,000OCF = €8,150,000And the NPV is:NPV = –€18.2M – 0.95M + €8.15M(PVIFA14%,7) + .95M/1.147NPV = €16,179,339.89So, the sensitivity of the NPV to changes in the price of the new club is:∆NPV/∆P = (€16,179,339.89 – 9,103,636.91)/(€750 – 700)∆NPV/∆P = €141,514.06For every euro increase (decrease) in the price of the clubs, the NPV increases (decreases) by €141,514.06.To calculate the sensitivity of the NPV to changes in the quantity sold of the new club, we simply need to change the quantity sold. We will choose 60,000 units, but the choice is irrelevant as the sensitivity will be the same no matter what quantity we choose.We will calculate the sales and variable costs first. Since we will lose sales of the expensive clubs and gain sales of the cheap clubs, these must be accounted for as erosion. The total sales for the new project will be:SalesNew clubs €700 ⨯ 60,000 = €42,000,000Exp. clubs €1,100 ⨯ (– 13,000) = –14,300,000Cheap clubs €400 ⨯ 10,000 = 4,000,000€31,700,000For the variable costs, we must include the units gained or lost from the existing clubs. Note that the variable costs of the expensive clubs are an inflow. If we are not producing the sets anymore, we will save these variable costs, which is an inflow. So:Var. costsNew clubs €320 ⨯ 60,000 = €19,200,000Exp. clubs €600 ⨯ (–13,000) = –7,800,000Cheap clubs €180 ⨯ 10,000 = 1,800,000€13,200,000The pro forma income statement will be:Sales €31,700,000Variable costs 13,200,000Costs 7,500,000Depreciation 2,600,000EBT 8,400,000Taxes 3,360,000Net income € 5,040,000Using the bottom up OCF calculation, we get:OCF = NI + Depreciation = €5,040,000 + 2,600,000OCF = €7,640,000The NPV at this quantity is:NPV = –€18.2M –€0.95M + €7.64(PVIFA14%,7) + €0.95M/1.147NPV = €13,992,304.43So, the sensitivity of the NPV to changes in the quantity sold is:∆NPV/∆Q = (€13,992,304.43 – 9,103,636.91)/(60,000 – 55,000)∆NPV/∆Q = €977.73For an increase (decrease) of one set of clubs sold per year, the NPV increases (decreases) by€977.73.17.a. The base-case NPV is:NPV = –£1,750,000 + £420,000(PVIFA16%,10)NPV = £279,955.54b.We would abandon the project if the cash flow from selling the equipment is greater than thepresent value of the future cash flows. We need to find the sale quantity where the two are equal, so:£1,500,000 = (£60)Q(PVIFA16%,9)Q = £1,500,000/[£60(4.6065)]Q = 5,427.11Abandon the project if Q < 5,428 units, because the NPV of abandoning the project is greater than the NPV of the future cash flows.c.The £1,500,000 is the market value of the project. If you continue with the project in one year,you forego the £1,500,000 that could have been used for something else.18. a.If the project is a success, present value of the future cash flows will be:PV future CFs = £60(9,000)(PVIFA16%,9)PV future CFs = £2,487,533.69From the previous question, if the quantity sold is 4,000, we would abandon the project, and the cash flow would be £1,500,000. Since the project has an equal likelihood of success or failure in one year, the expected value of the project in one year is the average of the success and failure cash flows, plus the cash flow in one year, so:Expected value of project at year 1 = [(£2,487,533.69 + £1,500,000)/2] + £420,000Expected value of project at year 1 = £2,413,766.85The NPV is the present value of the expected value in one year plus the cost of the equipment, so:NPV = –£1,750,000 + (£2,413,766.85)/1.16NPV = £330,833.49b. If we couldn’t abandon the project, the present value of the fut ure cash flows when the quantityis 4,000 will be:PV future CFs = £60(4,000)(PVIFA16%,9)PV future CFs = £1,105,570.53The gain from the option to abandon is the abandonment value minus the present value of the cash flows if we cannot abandon the project, so:Gain from option to abandon = £1,500,000 – 1,105,570.53Gain from option to abandon = £394,429.47We need to find the value of the option to abandon times the likelihood of abandonment. So, the value of the option to abandon today is:Option value = (.50)(£394,429.47)/1.16Option value = £170,012.70。
罗斯公司理财第六章投资决策课后习题答案
1.阐述一下机会成本的定义答：某项资产用于某个新项目，则会丧失了其他方式所能带来的潜在收入，这些丧失被认作机会成本2.在计算投资项目的NPV时，下边哪个可以被看成是增量现金流？（1）新的产品所带来的公司的其他产品的销售的下滑（2）只有新的项目被接受，才会开始投入建造的机器和厂房（3）过去的3年发生的和新项目相关的研发费用（4）新项目每年的折旧费用（5）公司发放的股利（6）新项目结束时，销售厂房和机器设备的收入（7）如果新项目被接受，那么需要支付的新雇佣员工的薪水和医疗保险费用答：这里的增量的现金流量可以为负数，而且查看一个项目的增量现金流量主要应该看这些现金流量是否专属于这个项目但也有例外如侵蚀效应、沉没成本和折旧（1）是副效应中的侵蚀效应当算入增量现金流只不过它是负数而已；（2）固定资产的投资当然应担算入增量现金流它也为负数；（3）过去三年的新项目相关的研发费用属于沉没不能算作当前评估项目的增量现金流；（4）折旧费用本来不会直接的带来项目的增量现金流，但是它抵减了税款，间接的提供了增量现金流故应当算作项目的增量现金流；（5）公司的发放的股利应为不属于这个项目的专属现金流量，故不能算作项目的增量现金流量；（6）应当算作项目的增量现金流量，因为它专属于这个项目（7）项目的员工的工资因为专属于这个项目故应当算作该项目的增量现金流量3.你的公司现在生产和销售钢制的高尔夫球杆。
公司董事会建议你考虑生产钛合金和石墨制的高尔夫球杆，下列哪一项不会产生增量现金流。
（1）自有土地可以被用来建设新厂房，但是新项目如果不被接受，该土地将以市场价700000美元出售；（2）如果钛合金和石墨制的高尔夫球杆被接受，则钢制的高尔夫球杆的销售额可能会下降300000美元；（3）去年用在石墨高尔夫球杆上的研发费用为200000答：对于（1）属于机会成本应当算入项目的增量现金流（2）属于副效应中的侵蚀效应应当算入项目的增量现金流；（3）属于沉没成本，不应当算入项目的增量现金流4.如果可以选择，你更愿意接受直线折旧法还是改进的加速成本折旧法？为什么答：应该更加偏向于加速成本折旧法，因为它在前期产生了更多的折旧额，抵减了更多的税款（从货币的时间价值上来说）5.我们在前面套路资本预算的时候，我们假设投资项目的营运资本都能够回收。
431罗斯《公司理财》整理
6.杜邦恒等式
ROE=销售利润率（经营效率）x总资产周转率（资产运用效率）x权益乘数（财杠）
ROA=销售利润率x总资产周转率
7.销售百分比法
假设项目随销售额变动而成比例变动，目的在于提出一个生成预测财务报表的快速实用方法。是根据资金各个项目与销售收入总额的依存关系，按照计划销售额的增长情况预测需要相应追加多少资金的方法。
第五章
1.名义利率与实际利率：1 + R =（1+r）x（1+h）
2.普通股价格等于所有预期未来股利现值，三种类型。
股利零增长，固定增长，变动增长（分段求现值）。
3.参数估计
公司盈利增长率g =留存收益比x留存收益的收益率即ROE（假设股利/盈利比不变）
R由固定增长股价公式求得。
4.增长机会
股价分为两部分：现金牛价值EPS/R，以及留存盈利用于投资新项目的新增价值NPVGO。
有效集或有效边界：投资者只考虑MV以上的部分。
4.多种资产组合有效集（一个平面区域）
有效集：相同收益率下方差最小的点，即最左侧边界，且高于MV。
5.多元化
实际收益率=预期收益率+系统风险+非系统风险
多元化的本质：降低非系统风险，但无法分散系统风险。
6.最优投资组合
资本市场线CML：在 平面内，表示风险资产的有效组合，与无风险资产有效再组合。
4.方法相对简单，易于管理，常用量筛选大量小型投资项目。
折现回收期法：对现金流折现后求出达到初始投资额所需折现现金流的时间。
3.平均会计收益率法
定义：扣除税和折旧之后的项目平均收益除以整个项目期限内平均账面投资额所得的比率。
Ross7eCh07NetPresentValueandCapitalBudgeting公司理财罗斯第七版.ppt
McGraw-Hill/Irwin Corporate Finance, 7/e
© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.
7-8
7.2 The Baldwin Company: An Example
Costs of test marketing (already spent): $250,000. Current market value of proposed factory site (which we own): $150,000. Cost of bowling ball machine: $100,000 (depreciated according to ACRS 5-year life). Increase in net working capital: $10,000. Production (in units) by year during 5-year life of the machine: 5,000, 8,000, 12,000, 10,000, 6,000. Price during first year is $20; price increases 2% per year thereafter. Production costs during first year are $10 per unit and increase 10% per year thereafter. Annual inflation rate: 5% Working Capital: initially $10,000 changes with sales.
7-0
CHAPTER
7
Net Present Value and Capital Budgeting
公司理财第5章
Concept Questions◆Define pure discount bonds, level-coupon bonds, and consols.A pure discount bond is one that makes no intervening interest payments. One receives a single lump sum payment at maturity. A level-coupon bond is a combination of an annuity and a lump sum at maturity. A consol is a bond that makes interest payments forever.◆Contrast the state interest rate and the effective annual interest rate for bonds paying semi-annual interest. Effective annual interest rate on a bond takes into account two periods of compounding per year received on the coupon payments. The state rate does not take this into account.◆What is the relationship between interest rates and bond prices?There is an inverse relationship. When one goes up, the other goes down.◆How does one calculate the yield to maturity on a bond?One finds the discount rate that equates the promised future cash flows with the price of the bond.◆What are the three factors determining a firm's P/E ratio?Today's expectations of future growth opportunities.The discount rate.The accounting method.◆What is the closing price of General Data?The closing price of General Data is 6 3/16.◆What is the PE of General House?The PE of General House is 29.◆What is the annual dividend of Genera l Host?The annual dividend of General Host is zero.Concept Questions - Appendix To Chapter 5◆What is the difference between a spot interest rate and the yield to maturity?The yield to maturity is the geometric average of the spot rates during the life of the bond.◆Define the forward rate.Given a one-year bond and a two-year bond, one knows the spot rates for both. The forward rate is the rate of return implicit on a one-year bond purchased in the second year that would equate the terminal wealth of purchasing the one-year bond today and another in one year with that of the two-year bond.◆What is the relationship between the one-year spot rate, the two-year spot rate and the forward rate over the second year?The forward rate f2 = [(1+r2)2 /(1+r1 )] - 1◆What is the expectation hypothesis?Investors set interest rates such that the forward rate over a given period equals the spot rate for that period.◆What is the liquidity-preference hypothesis?This hypothesis maintains that investors require a ris k premium for holding longer-term bonds (i.e. they prefer to be liquid or short-term investors). This implies that the market sets the forward rate for a given period above the expected spot rate for that period.Questions And ProblemsHow to Value Bonds5.1 What is the present value of a 10-year, pure discount bond that pays $1,000 at maturity and is priced to yield the following rates?a. 5 percentb. 10 percentc. 15 percentSolutions a. $1,000 / 1.0510 = $613.91b. $1,000 / 1.1010 = $385.54c. $1,000 / 1.1510 = $247.185.2 Microhard has issued a bond with the following characteristics:Principal: $1,000Term to maturity: 20 yearsCoupon rate: 8 percentSemiannual paymentsCalculate the price of the Microhard bond if the stated annual interest rate is:a. 8 percentb. 10 percentc. 6 percentSolutions The amount of the semi-annual interest payment is $40 (=$1,000 ⨯ 0.08 / 2). There are a total of 40 periods; i.e., two half years in each of the twenty years in the term to maturity.The annuity factor tables can be used to price these bonds. The appropriate discount rate touse is the semi-annual rate. That rate is simply the annual rate divided by two. Thus, for p art b the rate to be used is 5% and for part c is it 3%.a. $40 (19.7928) + $1,000 / 1.0440 = $1,000Notice that whenever the coupon rate and the market rate are the same, the bond ispriced at par.b. $40 (17.1591) + $1,000 / 1.0540 = $828.41Notice that whenever the coupon rate is below the market rate, the bond is pricedbelow par.c. $40 (23.1148) + $1,000 / 1.0340 = $1,231.15Notice that whenever the coupon rate is above the market rate, the bond is pricedabove par.5.3 Consider a bond with a face value of $1,000. The coupon is paid semiannually and the market interest rate (effective annual interest rate) is 12 percent. How much would you pay for the bond if a. the coupon rate is 8 percent and the remaining time to maturity is 20 years?b. the coupon rate is 10 percent and the remaining time to maturity is 15 years?Solutions Semi-annual discount factor = (1.12)1/2 - 1 = 0.05830 = 5.83%a. Price = $40400583.0A+ $1,000 / 1.058340= $614.98 + $103.67= $718.65b. Price = $50300583.0A+ $1,000 / 1.058330= $700.94 + $182.70 = $883.645.4 Pettit Trucking has issued an 8-percent, 20-year bond that pays interest semiannually. If the market prices the bond to yield an effective annual rate of 10 percent, what is the price of the bond? Solutions Effective annual rate of 10%:Semi-annual discount factor = (1.1)0.5 - 1 = 0.04881 = 4.881%Price = $404004881.0A+ $1,000 / 1.0488140= $846.335.5 A bond is sold at $923.14 (below its par value of $1,000). The bond has 15 years to maturity and investors require a 10-percent yield on the bond. What is the coupon rate for the bond if the coupon is paid semiannually?Solutions $923.14 = C3005.0A+ $1,000 / 1.0530= (15.37245) C + $231.38C = $45The annual coupon rate = $45 ⨯ 2 / $1,000 = 0.09 = 9%5.6 You have just purchased a newly issued $1,000 five-year Vanguard Company bond at par. This five-year bond pays $60 in interest semiannually. You are also considering the purchase of another Vanguard Company bond that returns $30 in semiannual interest payments and has six years remaining before it matures. This bond has a face value of $1,000.a. What is effective annual return on the five-year bond?b. Assume that the rate you calculated in part (a) is the correct rate for the bond with six years remaining before it matures. What should you be willing to pay for that bond?c. How will your answer to part (b) change if the five-year bond pays $40 in semiannual interest? Solutionsa. The semi-annual interest rate is $60 / $1,000 = 0.06. Thus, the effective annual rate is 1.062 - 1 =0.1236 = 12.36%.b. Price = $301206.0A+ $1,000 / 1.0612= $748.48c. Price = $301204.0A+ $1,000 / 1.0412= $906.15Note: In parts b and c we are implicitly assuming that the yield curve is flat. That is, the yield in year 5 applies for year 6 as well.Bond Concepts5.7 Consider two bonds, bond A and bond B, with equal rates of 10 percent and the same face values of $1,000. The coupons are paid annually for both bonds. Bond A has 20 years to maturity while bond B has10 years to maturity.a. What are the prices of the two bonds if the relevant market interest rate is 10 percent?b. If the market interest rate increases to 12 percent, what will be the prices of the two bonds?c. If the market interest rate decreases to 8 percent, what will be the prices of the two bonds?Solutionsa. PA = $1002010.0A+ $1,000 / 1.1020 = $1,000PB = $1001010.0A+ $1,000 / 1.1010 = $1,000b. PA = $1002012.0A+ $1,000 / 1.1220 = $850.61PB = $1001012.0A+ $1,000 / 1.1210 = $887.00c. PA = $1002008.0A+ $1,000 / 1.0820 = $1,196.36PB = $1001008.0A+ $1,000 / 1.0810 = $1,134.205.8 a. If the market interest rate (the required rate of return that investors demand) unexpectedly increases, what effect would you expect this increase to have on the prices of long-term bonds? Why?b. What would be the effect of the rise in the interest rate on the general level of stock prices? Why? Solutionsa. The price of long-term bonds should fall. The price is the PV of the cash flowsassociated with the bond. As the interest rate rises, the PV of those flows falls.This can be easily seen by looking at a one-year, pure discount bond.Price = $1,000 / (1 + i)As i. increases, the denominator rises. This increase causes the price to fall.b. The effect upon stocks is not as certain as that upon the bonds. The nominalinterest rate is a function of both the real interest rate and the inflation rate; i.e.,(1 + i) = (1 + r) (1 + inflation)From this relationship it is easy to conclude that as inflation rises, the nominalinterest rate rises. Stock prices are a function of dividends and future prices aswell as the interest rate. Those dividends and future prices are determined by theearning power of the firm. When inflation occurs, it may increase or decreasefirm earnings. Thus, the effect of a rise in the level of general prices upon thelevel of stock prices is uncertain.5.9 Consider a bond that pays an $80 coupon annually and has a face value of $1,000. Calculate the yield to maturity if the bond hasa. 20 years remaining to maturity and it is sold at $1,200.b. 10 years remaining to maturity and it is sold at $950.Solutions a. $1,200 = $8020rA + $1,000 / (1 + r)20r = 0.0622 = 6.22%b. $950 = $8010rA + $1,000 / (1 + r)10r = 0.0877 = 8.77%5.10 The Sue Fleming Corporation has two different bonds currently outstanding. Bond A has a face value of $40,000 and matures in 20 years. The bond makes no payments for the first six years and then pays $2,000 semiannually for the subsequent eight years, and finally pays $2,500 semiannually for the last six years. Bond B also has a face value of $40,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the required rate of return is 12 percent compounded semiannually, what is the current price of Bond A? of Bond B?Solutions PA = ($2,0001606.0A) / (1.06)12 + ($2,5001206.0A) / (1.06)28 + $40,000 / (1.06)40= $18,033.86PB = $ 40,000 / (1.06)40 = $3,888.89The Present Value of Common Stocks5.11 Use the following February 11, 2000, WSJ quotation for AT&T Corp. Which of the following statements is false?a. The closing price of the bond with the shortest time to maturity was $1,000.b. The annual coupon for the bond maturing in year 2016 is $90.00.c. The price on the day before this quotation (i.e., February 9) for the ATT bond maturing in year 2022 was $1.075 per bond contract.d. The current yield on the ATT bond maturing in year 2002 was 7.125%e. The ATT bond maturing in year 2002 has a yield to maturity less than 7.125%.Bonds Cur Yld Vol Close Net ChgATT 9s 16 ? 10 117 _ 1/4ATT 5 1/8 01 ? 5 100 _ 3/4ATT 7 1/8 02 ? 193 104 1/8 _ 1/4ATT 8 1/8 22 ? 39 107 3/8 _ 1/8Solutions a. TrueTrueFalseFalseTrue5.12 Following are selected quotations for New York Exchange Bonds from the Wall Street Journal. Which of the following statements about Wilson’s bond is false?a. The bond maturing in year 2000 has a yield to maturity greater th an 63⁄8%.b. The closing price of the bond with the shortest time to maturity on the day before this quotation was $1,003.25.c. This annual coupon for the bond maturing in year 2013 is $75.00.d. The current yield on the Wilson’s bond with the longest time to maturity was 7.29%.e. None of the above.Quotations as of 4 P.M. Eastern TimeFriday, April 23, 1999Bonds Current Yield Vol Close NetWILSON 6 3/8 99 ? 76 100 3/8 _ 1/8WILSON 6 3/8 00 ? 9 98 1/2WILSON 7 1/4 02 ? 39 103 5/8 1/8WILSON 7 1/2 13 ? 225 102 7/8 _ 1/8Solutions a. TrueFalseTrueTrueFalse5.13 A common stock pays a current dividend of $2. The dividend is expected to grow at an 8-percent annual rate for the next three years; then it will grow at 4 percent in perpetuity.The appropriate discount rate is 12 percent. What is the price of this stock?Solutions Price = $2 (1.08) / 1.12 + $2 (1.082) / 1.122 + $2 (1.083) / 1.123+ {$2 (1.083) (1.04) / (0.12 - 0.04)} / 1.123= $28.895.14 Use the following February 12, 1998, WSJ quotation for Merck & Co. to answer the next question.52 Weeks Yld Vol NetHi Lo Stock Sym Div % PE 100s Hi Lo Close Chg120. 80.19 Merck MRK 1.80 ? 30 195111 115.9 114.5 115 _1.25Which of the following statements is false?a. The dividend yield was about 1.6%.b. The 52 weeks’ trading range was $39.81.c. The closing price per share on February 10, 1998, was $113.75.d. The closing price per share on February 11, 1998, was $115.e. The earnings per share were about $3.83.Solutions a. FalseTrueFalseFalseTrue5.15 Use the following stock quote.52 Weeks Yld Vol NetHi Lo Stock Sym Div % PE 100s Hi Lo Close Chg126.25 72.50 Citigroup CCI 1.30 1.32 16 20925 98.4 97.8 98.13 _.13The expected growth rate in Citigroup’s dividends is 7% a year. Suppose you use the discounted dividend model to price Citigroup’s shares. The constant growth dividend model would suggest that the required return on the Citigroup’s stock is what?98.125 = 1.30 ( 1.07) / r - 0.07r = 8.4175 %5.16 You own $100,000 worth of Smart Money stock. At the end of the first year you receive a dividend of $2 per share; at the end of year 2 you receive a $4 dividend. At the end of year 3 you sell the stock for $50 per share. Only ordinary (dividend) income is taxed at the rate of 28 percent. Taxes are paid at the time dividends are received. The required rate of return is 15 percent. How many shares of stock do you own? Solutions Price = $2 (0.72) / 1.15 + $4 (0.72) / 1.152 + $50 / 1.153= $36.31The number of shares you own = $100,000 / $36.31 = 2,754 shares5.17 Consider the stock of Davidson Company that will pay an annual dividend of $2 in the coming year. The dividend is expected to grow at a constant rate of 5 percent permanently.The market requires a 12-percent return on the company.a. What is the current price of a share of the stock?b. What will the stock price be 10 years from today?Solutionsa. P = $2 / (0.12 - 0.05) = $28.57b. P10 = D11 / (r - g)= $2 (1.0510) / (0.12 - 0.05) = $46.545.18 Easy Type, Inc., is one of a myriad of companies selling word processor programs. Their newest program will cost $5 million to develop. First-year net cash flows will be $2 million. As a result of competition, profits will fall by 2 percent each year thereafter.All cash inflows will occur at year-end. If the market discount rate is 14 percent, what is the value of this new program?SolutionsValue = -$5,000,000 + $2,000,000 / {0.14 - (-0.02)}= $7,500,0005.19 Whizzkids, Inc., is experiencing a period of rapid growth. Earnings and dividen ds per share are expected to grow at a rate of 18 percent during the next two years, 15 percent in the third year, and at a constant rate of 6 percent thereafter. Whizzkids’ last dividend, which has just been paid, was $1.15. If the required rate of return on the stock is 12 percent, what is the price of a share of the stock today? SolutionsPrice = $1.15 (1.18) / 1.12 + $1.15 (1.182) / 1.122 + $1.152 (1.182) / 1.123+ {$1.152 (1.182) (1.06) / (0.12 - 0.06)} / 1.123= $26.955.20 Allen, Inc., is expected to pay an equal amount of dividends at the end of the first two years. Thereafter, the dividend will grow at a constant rate of 4 percent indefinitely. The stock is currently traded at $30. What is the expected dividend per share for the next year if the required rate of return is 12 percent? Solutions$30 = D / 1.12 + D / 1.122 + {D (1 + 0.04) / (0.12 - 0.04)} / 1.122= 12.053571 DD = $2.495.21 Calamity Mining Company’s reserves of ore are being depleted, and its costs of recovering a declining quantity of ore are rising each year. As a result, the company’s earnings are declining at the rate of 10 percent per year. If the dividend per share that is about to be paid is $5 and the required rate of return is 14 percent, what is the value of the firm’s stock?SolutionsDividend one year from now = $5 (1 - 0.10) = $4.50Price = $5 + $4.50 / {0.14 - (-0.10)} = $23.75Since the current $5 dividend has not yet been paid, it is still included in the stock price.5.22 The Highest Potential, Inc., will pay a quarterly dividend per share of $1 at the end of each of the next 12 quarters. Subsequently, the dividend will grow at a quarterly rate of 0.5 percent indefinitely. The appropriate rate of return on the stock is 10 percent. What is the current stock price?Estimates of Parameters in the Dividend-Discount ModelSolutionsPrice = $112025.0A+ {$1 (1 + 0.005) / (0.025 - 0.005)} / 1.02512= $10.26 + $37.36= $47.625.23 The newspaper reported last week that Bradley Enterprises earned $20 million. The report also stated that the firm’s return on equity remains on its historical trend of 14 percent. Bradley retains 60 percent of its earnings. What is the firm’s growth rate of earnings? What will next year’s earnings be? SolutionsGrowth rate g = 0.6 ⨯ 0.14 = 0.084 = 8.4%Next year earnings = $20 million ⨯ 1.084 = $21.68 million5.24 Von Neumann Enterprises has just reported earnings of $10 million, and it plans to retain 75 percent of its earnings. The company has 1.25 million shares of common stock outstanding. The stock is selling at $30. The historical return on equity (ROE) of 12 percent is expected to continue in the future. What is the required rate of return on the stock?Growth Opportunitiesg = retention ratio ⨯ ROE = 0.75 ⨯ 0.12= 0.09 = 9%Dividend per share = $10 million ⨯ (1 - 0.75) / 1.25 million= $2The required rate of return = $2 (1.09) / $30 + 0.09= 0.1627 = 16.27%5.25 Rite Bite Enterprises sells toothpicks. Gross revenues last year were $3 million, and total costs were $1.5 million. Rite Bite has 1 million shares of common stock outstanding. Gross revenues and costs are expected to grow at 5 percent per year. Rite Bite pays no income taxes, and all earnings are paid out as dividends.a. If the appropriate discount rate is 15 percent and all cash flows are received at year’s end, what is the price per share of Rite Bite stock?b. The president of Rite Bite decided to begin a program to produce toothbrushes. The project requires an immediate outlay of $15 million. In one year, another outlay of $5 million will be needed. The year after that, net cash inflows will be $6 million. This profit level will be maintained in perpetuity. What effect will undertaking this project have on the price per share of the stock?Solutionsa. Price = ($3 - $1.5) ⨯ 1.05 / (0.15 - 0.05)= $15.75b. NPVGO = -$15,000,000 - $5,000,000 / 1.15 + ($6,000,000 / 0.15) / 1.15= $15,434,783The price increases by $15.43 per share.5.26 California Electronics, Inc., expects to earn $100 million per year in perpetuity if it does not undertake any new projects. The firm has an opportunity that requires an investment of $15 million today and $5 million in one year. The new investment will begin to generate additional annual earnings of $10 million two years from today in perpetuity. The firm has 20 million shares of common stock outstanding, and the required rate of return on the stock is 15 percent.a. What is the price of a share of the stock if the firm does not undertake the new project?b. What is the value of the growth opportunities resulting from the new project?c. What is the price of a share of the stock if the firm undertakes the new project?Solutionsa. Price = EPS / r = {$100 million / 20 million} / 0.15= $33.33b. NPV = -$15 million - $5 million / 1.15 + ($10 million / 0.15) / 1.15= $38,623,188c. Price = $33.33 + $38,623,188 / 20,000,000= $35.265.27 Suppose Smithfield Foods, Inc., has just paid a dividend of $1.40 per share. Sales and profits for Smithfield Foods are expected to grow at a rate of 5% per year. Its dividend is expected to grow by the same rate. If the required return is 10%, what is the value of a share of Smithfield Foods?SolutionsPrice = 1.40 (1.05) / 0.10 - 0.05Price = $29.405.28 In order to buy back its own shares, Pennzoil Co. has decided to suspend its dividends for the next two years. It will resume its annual cash dividend of $2.00 a share 3 years from now. This level of dividends will be maintained for one mo re year. Thereafter, Pennzoil is expected to increase its cash dividend payments by an annual growth rate of 6% per year forever. The required rate of return on Pennzoil’s stock is 16%. According to the discounted dividend model, what should Pennzoil’s current share price be? SolutionsPrice = 2 / (1.16) 3 + 2 / (1.16)4 + 2.12 / 0.16 - 0.06= 1.28 + 1.10 + 21.20= $23.585.29 Four years ago, Ultramar Diamond Inc. paid a dividend of $0.80 per share. This year Ultramar paid a dividend of $1.66 per share. It is expected that the company will pay dividends growing at the same rate for the next 5 years. Thereafter, the growth rate will level at 8% per year. The required return on this stock is 18%. According to the discounted dividend model, what would Ultramar’s cash dividend be in 7 years? a. $2.86c. $3.68d. $4.30e. $4.82Solutionsa. g = 0.4 ⨯ 0.15 = 0.06 = 6%b. Dividend per share = $1.5 million ⨯ 0.6 / 300,000= $3Price = $3 (1.06) / (0.13 - 0.06)= $45.43c. Assuming the additional earnings generated are all paid out as cash dividends.NPV = -$1.2 million + $0.3 million {1 / (0.13 - 0.10)} {1 - (1.10 / 1.13)10}= $1,159,136.93d. Price = $45.43 + $1,159,136.93 / 300,000= $49.295.30 The Webster Co. has just paid a dividend of $5.25 per share. The company will increase its dividendby 15 percent next year and will then reduce its dividend growth by 3 percent each year until it reaches the industry average of 5 percent growth, after which the company will keep a constant growth, forever. The required rate of return for the Webster Co. is 14 percent. What will a share of stock sell for?SolutionsPrice = 3 / 1.15 + 4.5 / ( 1.15)2 + 4.725 / 0.15- 0.05= 2.61 + 3.40 + 47.52= $53.535.31 Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported recent earnings of $800,000 and have 500,000 shares of common stock outstanding. Assume both firms have the same required rate of return of 15 percent a year.a. Pacific Energy Company has a new project that will generate cash flows of $100,000 each year in perpetuity. Calculate the P/E ratio of the company.Chapter 5 How to Value Bonds and Stocks 129b. U.S. Bluechips has a new project that will increase earnings by $200,000 in the coming year. The increased earnings will grow at 10 percent a year in perpetuity. Calculate the P/E ratio of the firm. Solutionsa. P/E of Pacific Energy Company:EPS = ($800,000 / 500,000) = $1.6NPVGO = {$100,000 / 500,000} / 0.15 = $1.33P/E = 1 / 0.15 + 1.33 / 1.6 = 7.50b. P/E of U. S. Bluechips, Inc.:NPVGO = {$200,000 / 500,000} / (0.15 - 0.10) = $8P/E = 1 / 0.15 + 8 / 1.6 = 11.675.32 (Challenge Question) Lewin Skis Inc. (today) expects to earn $4.00 per share for each o f the future operating periods (beginning at time 1) if the firm makes no new investments (and returns the earnings as dividends to the shareholders). However, Clint Williams, President and CEO, has discovered an opportunity to retain (and invest) 25% of the earnings beginning three years from today (starting at time 3). This opportunity to invest will continue (for each period) indefinitely. He expects to earn 40% (per year) on this new equity investment (ROE of 40), the return beginning one year after each investment is made. The firm’s equity discount rate is 14% throughout.a. What is the price per share (now at time 0) of Lewin Skis Inc. stock without making the new investment?b. If the new investment is expected to be made, per the preceding information, what would the value of the stock (per share) be now (at time 0)?c. What is the expected capital gain yield for the second period, assuming the proposed investment is made? What is the expected capital gain yield for the second period if the proposed investment is not made?d. What is the expected dividend yield for the second period if the new investment is made? What is the expected dividend yield for the second period if the new investment is not made?Solutionsa. Price = $4 / 0.14 = $28.57Price = 28.57 + (-1 + 0.40 / 0.14) / 0.04(1.14) 3= 28.57 + 31.33The expected return of 14% less the dividend yield of 5% providesa capital gain yield of 9%. If there is no investment the yield is 14%.$3 / $59.90 = .05 and $4 / $28.57 = .14 without the investment.Appendix to Chapter 5 Questions And ProblemsA.1 The appropriate discount rate for cash flows received one year from today is 10 percent. The appropriate annual discount rate for cash flows received two years from today is 11 percent.a. What is the price of a two-year bond that pays an annual coupon of 6 percent?b. What is the yield to maturity of this bond?Solutionsa. P = $60 / 1.10 + $1,060 / (1.11)2= $54.55 + $ 860.32= $914.87$914.87 = $60 / ( 1 + y ) + $1,060 / ( 1 + y )2y = YTM = 10.97%A.2 The one-year spot rate equals 10 percent and the two-year spot rate equals 8 percent. What should a 5-percent coupon two-year bond cost?SolutionsP = $50 / 1.10 + $1,050 / (1.08)2= $45.45 + $900.21= $945.66A.3 If the one-year spot rate is 9 percent and the two-year spot rate is 10 percent, what is the forward rate? Solutions ( 1 + r1 )( 1 + ƒ2 ) = ( 1 + r2 )2( 1.09 ) ( 1 + ƒ2 ) = ( 1.10 )2ƒ2 = .1101A.4 Assume the following spot rates:Maturity Spot Rates (%)1 52 73 10What are the forward rates over each of the three years?Solutions( 1 + r2 )2 = ( 1+ r1 ) ( 1 + ƒ2 )( 1.07 )2 = ( 1.05 )( 1 + ƒ2 )ƒ2 = .0904, one-year forward rate over the 2nd year is 9.04%.( 1 + r3 )3 = ( 1 + r2 )2 ( 1 + ƒ3 )( 1.10 )3 = ( 1.07 )2 ( 1 + ƒ3 )ƒ3 = .1625, one-year forward rate over the 3rd year is 16.25%.。
罗斯公司理财原书第七版全套Excel Solutions (38)
Chapter 8: Risk Analysis, Real Options, and Capital Budgeting 8.1Calculate the NPV of the expected payoff for the option of going directly to market.NPV(Go Directly) = C Success (Prob. of Success) + C Failure (Prob. of Failure)= $20,000,000 (0.50) + $5,000,000 (0.50)= $12,500,000The expected payoff of going directly to market is $12,500,000.The test marketing requires a $2 million cash outlay. Choosing the test marketing option will also delay the launch of the product by one year. Thus, the expected payoff is delayed by one year and must be discounted back to year 0.NPV(Test Market) = -C0 + [C Success (Prob. of Success)] / (1+r)T +[C Failure (Prob. of Failure)] / (1+r)T= -$2,000,000 + [$20,000,000 (0.75)] / (1.15) +[$5,000,000 (0.25)] / (1.15)= $12,130,434.78The expected payoff of test marketing the product is $12,130,434.78.Sony should go directly to market with the product since that option has the highestexpected payoff.8.2Calculate the NPV of each option. The manager should pursue the option with the highest NPV.NPV(Go Directly) = C Success (Prob. of Success)= $1,200,000 (0.50)= $600,000The NPV of going directly to market is $600,000.NPV(Focus Group) = C0 + C Success (Prob. of Success)= -$120,000 + $1,200,000 (0.70)= $720,000The NPV when conducting a focus group is $720,000.NPV(Consulting Firm) = C0 + C Success (Prob. of Success)= -$400,000 + $1,200,000 (0.90)= $680,000The NPV when hiring a consulting firm is $680,000.The firm should conduct a focus group since that option has the highest NPV.8.3Recommend the strategy that has the highest NPV.NPV(Lower Prices) = C Success (Prob. of Success) + C Failure (Prob. of Failure)= -$1,300,000 (0.55) - $1,850,000 (0.45)= -$1,547,500NPV(Lobbyist) = C0 + C Success (Prob. of Success) + C Failure (Prob. of Failure)= -$800,000 - $0 (0.75) - $2,000,000 (0.25)= -$1,300,000The CFO should hire the lobbyist since that option has the highest NPV.8.4Since the NPV of Research is greater than that of no research, based on expected outcomes, B&Bshould go directly to market.$3 million at t = 0Note: Research = –1 million investment + 0.7 * (26.087) if successful + 0.3 * (2.6087) if unsuccessful No Research = 0.55 * (30) if successful + 0.45 * (3) if unsuccessful8.5Carl should have taken the $5,000.Expected return for 1% of movie profits is $3,000. Since only good scripts are made into movies and only a good movie would make a profit: (10% x 30% x $10 mil x 1%)Movie studio decision tree:B-1648.6 Apply the accounting profit break-even point (BEP) formula and solve for the sales price, x, thatallows the firm to break even when producing 20,000 calculators. In order for the firm to breakeven, the revenues from the calculator sales (number of calculators sold sales price per unit)must equal the total annual cost of producing the calculators. Remember to include taxes in theanalysis.Variable costs = $15 per calculatorFixed costs = $900,000 per yearDepreciation = (Initial Investment / Economic Life)= ($600,000 / 5)= $120,000 per yearDivide the after-tax sum of the depreciation expense and the fixed costs by the calculator’s after-tax contribution margin (selling price, x, minus variable cost). The after-tax contribution margin is the amount that each additional calculator contributes to the firm’s profit. Before the firm canrealize a positive profit, it must have earned enough to cover its fixed costs and depreciationexpense. Solve for x.[(Fixed Costs + Depr.) (1–T c)] / [(Sales Price - Variable Cost) (1-T c)] = BEP[($900,000 + $120,000) (1 – 0.30)] / [(x - $150) (1 – 0.30)] = 20,000x= $66 The break-even sales price of the calculator is $66.8.7 Apply the accounting profit break-even point formula. Divide the after-tax sum of the annualdepreciation expense and the annual fixed costs by the television’s after-tax contribution margin(selling price minus variable cost).[(Fixed Costs + Depr.) (1–T c)] / [(Sales Price - Variable Cost) (1-T c)] = BEP[($120,000 + $20,000) (1 -0.35)] / [($1,500 - $1,100) (1 - 0.35)] = 350 The distributor must sell 350 televisions per year to break even.8.8 a. Apply the accounting profit break-even point formula. Divide the after-tax sum of thefixed costs and depreciation charge by the abalone’s after-tax contribution margin(selling price minus variable cost). The number of abalones that the proprietor must sellin order for you to receive any profit is the break-even point (BEP).[(Fixed Costs + Depr.) (1–T c)] / [(Sales Price – Variable Cost) (1-T c)] = BEP[($340,000 + $20,000) (1 – 0.35)] / [($2.00 - $0.72) (1 – 0.35)]= 281,250The proprietor must sell at least 281,250 abalones per year in order for you toreceive any profit.b. To calculate the amount of profit you will receive if the proprietor sells 300,000 abalones,subtract the total cost incurred from the total revenue received. Remember to includetaxes.Total Revenue Per Year = (Sales Price) (Number Sold) (1 – T c)= ($2.00) (300,000) (1 – 0.35)= $390,000Total Cost Per Year = [Fixed Cost + Deprc. + (Variable Cost) (Number Sold)] (1-T c)= [$340,000 + $20,000 +($0.72) (300,000)] (1 – 0.35)= $374,400Total Profit = Total Revenue – Total Cost= $390,000 - $374,400= $15,600You will receive $15,600 if the proprietor sells 300,000 abalones.8.9 Played 2187.5 = CEILING ((1000 + 50)/(0.5-0.02),1)8.10 a) ()()()()()()()()shirts-T10003.18103.1000,2Tc-1costVariable-priceSalesTc-1onDepreciatiCostFixed=-⨯--⨯+=⨯⨯+b) ()()()()()()()()shirts-T29743.18104018.2/000,10Tc-1costVariable-priceSalesTconDepreciatiTc1costFixedEAC=-⨯-++=⨯⨯+-⨯+8.11 When calculating the present value break-even point, express the initial investment of $140,000 asan equivalent annual cost (EAC). Divide the initial investment by the seven-year annuity factor,discounted at 15 percent. The EAC incorporates the opportunity cost of the investment.EAC = Initial Investment / A T r= $140,000 / A70.15= $33,650.45Calculate the annual depreciation expense.Depreciation = $140,000 / 7= $20,000Calculate the present-value break-even point. The fixed costs are $340,000. Remember toincorporate taxes into the calculation. Remember to include the depreciation tax shield, whichlowers the firm’s tax bill.[EAC+(Annual Fixed Costs) (1 - T c) – (Annual Depr.) (T c)] / [(Sales Price – Variable Cost) (1 – T c)]= BEP[$33,650.45 + $340,000 (0.65) - $20,000 (0.35)] / [($2 - $0.72) (0.65)] =297,656.79≅ 297,657 units The present value break-even point is 297,657 abalones.8.12 When calculating the present value break-even point, express the initial investment of $200,000 asan equivalent annual cost (EAC). Divide the initial investment by the five-year annuity factor,discounted at 12 percent.EAC = Initial Investment / A T r= $200,000 / A50.12= $55,481.95Calculate the annual depreciation expense.Depreciation = $200,000 / 5= $40,000Calculate the present-value break-even point.[EAC+(Fixed Costs) (1 - T c) – (Depr.) (T c)] / [(Sales Price – Variable Cost) (1 – T c)]= BEP[$55,481.95 + ($350,000) (0.75) – ($40,000) (0.25)] / [($25 - $5) (0.75)] = 20,532.13 The present value break-even point is 20,532 units.8.13 The following represents a different approach to solving present-value break-even problems,unlike the EAC method used in problems 8.8 and 8.7.Both the EAC approach and this approach will yield the same answer.First, determine the cash flow from selling the old harvester. When calculating the salvage value, remember that tax liabilities or credits are generated on the difference between the resale value and the book value of the asset.Use the original purchase price of the old harvester to determine annual depreciation.Depreciation Per Period = $45,000 / 15= $3,000Since the machine is five years old, the firm has accumulated five annual depreciation charges,reducing the book value of the machine. The current book value of the machine is equal to theinitial purchase price minus the accumulated depreciation.Book Value = Initial Purchase Price – Accumulated Depreciation= $45,000 – ($3,000 ⨯ 5 years)= $30,000Since the firm is able to resell the old harvester for $20,000, which is less than the $30,000 bookvalue of the machine, the firm will generate a tax credit on the sale.PV(Resale Value) = C - T C (Resale Value – Book Value)= $20,000 – 0.34 ($20,000 - $30,000)= $23,400Calculate the incremental depreciation. Calculate the depreciation tax shield generated by the new harvester less the forgone depreciation tax shield from the old harvester. Let P be the break-even purchase price.Depreciation Tax Shield, New Harvester = (Initial Investment / Economic Life) ⨯ T c= (P / 10) (0.34)Depreciation Tax Shield, Old Harvester = ($45,000 / 15) (0.34)= ($3,000) (0.34)Incremental Depreciation Tax Shield = (P / 10 - $3,000) (0.34)Apply the 10-year annuity formula, discounted at 15 percent, to calculate the PV of theincremental depreciation tax shield.PV(Depreciation Tax Shield) = (P / 10 - $3,000) (0.34) A100.15 The new harvester will generate year-end pre-tax cash flow savings of $10,000 per year for 10years. Apply the 10-year annuity formula, discounted at 15 percent, to find the PV of thosesavings. Remember to include taxes.PV(Savings) = (1 – T c) C1 A T r= (1 - 0.34) $10,000 A100.15= $33,123.87The break-even purchase price of the new harvester is the price, P, which makes the NPV of themachine equal to zero.NPV = -P + PV(Resale Value) + PV(Depreciation Tax Shield) + PV(Savings)$0 = -P + $23,400 + (P / 10 - $3,000) (0.34) A100.15 + $33,123.87P= $61,981.06The break-even purchase price is $61,981.06.8.14 A 5,0.08 3.993EAC 75,136,936Depreciation 60,000PVBreak-Even 3,5188.15 a. Pessimistic:Calculate the NPV of the pessimistic scenario. First, determine the yearly cash flow.Cash Flow = [Revenue - Variable Costs – Fixed Costs] (1 – T c) + Depr. Tax Shield= [($38 ⨯ 23,000) – ($21 ⨯ 23,000) - $320,000] (1- 0.35) +($420,000 / 7) (0.35)= $67,150Apply the seven-year annuity formula to calculate the NPV of the machine. Subtract theinitial investment.NPV = C0 + C1 A T r= -$420,000 + $67,150 A70.13= -$123,021.71The NPV of the pessimistic scenario is -$123,021.71.Expected:Calculate the NPV of the expected scenario. First, determine the yearly cash flow.Cash Flow = [Revenue - Variable Costs – Fixed Costs] (1 – T c) + Depr. Tax Shield= [($40 ⨯ 25,000) – ($20 ⨯ 25,000) - $300,000] (1- 0.35)+ ($420,000 / 7) (0.35)= $151,000Apply the seven-year annuity formula to calculate the NPV of the machine. Subtract theinitial investment.NPV = C0 + C1 A T r= -$420,000 + $151,000 A70.13= $247,814.18The NPV of the expected scenario is $247,814.18.Optimistic:Calculate the NPV of the optimistic scenario. First, determine the yearly cash flow.Cash Flow = [Revenue – Variable Costs – Fixed Costs] (1 – T c)+ Depreciation Tax Shield= [($42 ⨯ 27,000) – ($19 ⨯ 27,000) - $280,000] (1- 0.35)+ ($420,000 / 7) (0.35)= $242,650Apply the seven-year annuity formula to calculate the NPV of the machine. Subtract theinitial investment.NPV = C0 + C1 A T r= -$420,000 + $242,650 A70.13= $653,146.42The NPV of the optimistic scenario is $653,146.42.b. Calculate the expected NPV of the project to form your conclusion about the project.Remember that, since each scenario is equally likely, the expected NPV is the average ofthe three scenarios.NPV = [NPV(Pessimistic) + NPV(Expected) + NPV(Optimistic)] / (3)= [-$123,021.71 + $247,814.18 + $653,146.42] / 3= $259,312.96The expected NPV of the project is $259,312.96. You should conclude that theproject is worthwhile.8.16 Pessimistic:Calculate the NPV of the pessimistic scenario. First, determine the yearly cash flow. Todetermine the number of rackets sold, multiply the market size by the market share.Number of Rackets = Market Size ⨯ Market Share= 110,000 ⨯ 0.22= 24,200Cash Flow = [Revenue – Variable Costs – Fixed Costs] (1 – T c)+ Depreciation Tax Shield= [$115 ⨯ 24,200 - $72 ⨯ 24,200 - $850,000] (1 – 0.4)+ ($1,500,000 / 5) (0.4)= $234,360Apply the five-year annuity formula to calculate the NPV of the racket project. Subtract the initial investment.NPV = C0 + C1 A T r= -$1,500,000 + $234,360 A50.13= -$675,701.68Expected:Calculate the NPV of the expected scenario. First, determine the yearly cash flow. To determine the number of rackets sold, multiply the market size by the market share.Number of Rackets = Market Size ⨯ Market Share= 120,000 ⨯ 0.25= 30,000Cash Flow = [Revenue – Variable Costs – Fixed Costs] (1 – T c)+ Depreciation Tax Shield= [$120 ⨯ 30,000 - $70 ⨯ 30,000 - $800,000] (1 – 0.4)+ ($1,500,000 / 5) (0.4)= $540,000Apply the five-year annuity formula to calculate the NPV of the racket project. Subtract the initial investment.NPV = C0 + C1 A T r= -$1,500,000 + $540,000 A50.13= $399,304.88Optimistic:Calculate the NPV of the optimistic scenario. First, determine the yearly cash flow. To determine the number of rackets sold, multiply the market size by the market share.Number of Rackets = Market Size ⨯ Market Share= 130,000 ⨯ 0.27= 35,100Cash Flow = [Revenue – Variable Costs – Fixed Costs] (1 – T c)+ Depreciation Tax Shield= [$125 ⨯ 35,100 - $68 ⨯ 35,100 - $750,000] (1 – 0.4)+ ($1,500,000 / 5) (0.4)= $870,420Apply the five-year annuity formula to calculate the NPV of the racket project. Subtract the initial investment.NPV = C0 + C1 A T r= -$1,500,000 + $870,420 A50.13= $1,561,468.43Calculate the expected NPV of the project. Since each scenario is equally likely, the expectedNPV is the average of the three scenarios.NPV = [NPV(Pessimistic) + NPV(Expected) + NPV(Optimistic)] / (3)= [-$675,701.68 + $399,304.88 + $1,561,468.43] / (3)= $428,357.21The expected NPV of the project is $428,357.21. You should accept the project.8.17 Holding all variables as expected, except a single sensitivity analysis variable that is held atpessimistic or optimistic.Since under all scenarios NPVs come out positive, the project should be taken.8.18B-172Optimistic8.19 a. Apply the 10-year annuity formula, discounted at 10 percent, to calculate the NPV of thevideo game.NPV = C0 + C1 A T r= -$4,000,000 + $750,000 A100.1= $608,425.33The NPV of the video game is $608,425.33.b.Calculate the revised NPV of the project. The firm expects to receive net cash flow of$750,000 at the end of the first year of operations. Discount that value back one period toyear 0.PV(Year 1 Cash Flow) = C1 / (1+r)T= $750,000 / (1.1)= $681,818.18For the next nine years, the firm has a 50 percent chance of receiving annual cash flowsof $1,500,000 and a 50 percent chance of receiving annual cash flows of $0. Should thefirm receive cash flows of $0, the firm should exercise the option of abandonment andreceive the $200,000 cash flow. The probability of exercising that option is 50 percent.Calculate the expected PV of the revised cash flows by applying the nine-year annuityformula. To calculate the expected PV as of year 0, discount that value back one periodto year 0. The option is exercised in year 1 and must also be discounted back one periodto year 0.PV(Revised) = (Prob. ⨯ C2⨯ A T r + Prob. ⨯ Salvage) / (1+r)T= (0.5 ⨯ $1,500,000 ⨯ A90.1 + 0.5 ⨯ $200,000) / (1.1)= $4,017,516.23After including the initial investment, the revised NPV of the project is equal to the sumof the first year’s cash flow, the PV of the expected cash flows for the next nine years,and the expected value of abandoning the project.Revised NPV = C0 + C1 / (1+r)T +[(Prob. ⨯ C2⨯ A T r) + (Prob. ⨯ C2)] / (1+r)T= -$4,000,000 + $750,000 / (1.1) +(0.5 ⨯ $1,500,000 ⨯ A90.1 + 0.5 ⨯ $200,000) / (1.1)= $699,334.42The revised NPV is $699,334.42.c. The market value of the project, M, is the NPV of the project without an option toabandon plus the value of the option, Opt. The NPV of the project without the option toabandon was calculated in part (a). The difference between the NPV as calculated in part(a) and the revised NPV is equal to the option value of abandonment, Opt.M= NPV + Opt$699,334.42 = $608,425.33+ Opt$90,909.09 = OptThe option value of abandonment is $90,909.09.8.20 a. Apply the 10-year annuity formula, discounted at 20 percent to calculate the NPV of theproject. Total annual net cash flow is $200,000,000.NPV = C0 + C1 A T r= -$100,000,000 + $200,000,000 A100.2= $738,494,417.11The NPV of the project is $738,494,417.11.b.Allied Products should abandon the project if the PV of the revised cash flows for thenext nine years is less than the project’s scrap value. Since the option to abandon theproject occurs in year 1, discount the revised cash flows to year 1 as well. To determinethe level of expected cash flows below which Allied should abandon the project,calculate the equivalent annual cash flows the project must earn to equal the scrap value,$50 million. Set the scrap value equal to a nine-year annuity, discounted at 20 percent.Solve for C1.Scrap Value = C1 A T r$50,000,000 = C1 A90.2$50,000,000 / A90.2= C1$12,403,973.08 = C1The firm should abandon the project after the first year if the revised expectedannual cash flows are below $12,403,973.08. Below that level, the firm is better offabandoning the project and receiving the $50 million scrap value of the project.8.21 a. NPV (1.932) = –10 + 10*0.3*(1/0.25-1/0.25*(1/1.25)5)b. Option Value 2.000 = 0.5*9/1.25New NPV 0.068 = –10 + 10*0.3/1.25 + 0.5*15*0.3*(1/0.25 –1/0.25*(1/1.25)4)/(1.25) + 0.5*9/1.25B-175。
罗斯—公司理财第七版中文PPT—第七章
折旧按成本加速回收制度( Accelerated Cost Recovery System，ACRS，具体折旧比例如 右边所示） 本例中基础成本为$100,000 第4年的折旧费用= $100,000×(.1152) = $11,520.
• 通货膨胀是经济生活中的一个重要事实，而且在资本预 算中必须考虑。 • 考虑利率和通货膨胀之间的关系，即所谓的费雪关系 (Fisher relationship)： (1 + 名义利率) = (1 + 实际利率) × (1 + 通货膨胀率) • 如果通货膨胀率不高，此式经常写为近似式： 实际利率 ≅ 名义利率 – 通货膨胀率 • 虽然在美国的名义利率一直在随通货膨胀波动，但与名 义利率相比，实际利率的方差大多数时间里要小得多。 • 在资本预算中考虑通货膨胀的时候，所比较的对象必须 是用实际利率贴现的实际现金流量或用名义利率贴现的 名义现金流量。
$39.80 $54.19 $66.86 $59.87 $224.66 NPV = −$260 + + + + + 2 3 4 (1.10) (1.10) (1.10) (1.10) (1.10)5 NPV = $51,588.05
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7.3 通货膨胀和资本预算
13
鲍德温公司现金流量计算表(续)
(单位：千元) (所有现金流量均发生在年末)
第0年 利润： (8)销售收入 (9)经营成本
第1年
第2年 第Leabharlann 年第4年第5年 129.90 87.84
公司理财作业-GOODWEEK轮胎
$104,118,228 -$38,363,166 -$25,812,500 -$29,400,000 $10,542,562 -$4,217,025 $6,325,537
表1 Goodweek轮胎有限公司经营收入与成本
年 价格 1 2 3 4
$36.00 $37.53 $39.13 $40.79
OEM市场 市场容量 市场份额 8,000,000 11% 8,200,000 11% 8,405,000 11% 8,615,125 11%
投资1超级轮胎生产设备120000000458331432累计折旧171600004656000067560000825600003设备纳税调整1028400007344000052440000374400004净营运资本年末1100000014664000156177341663358605净营运资本变化1100000036640009537341015852166335861310000003664000953734101585262466728收入7销售收入977600001041182281108905721181040418经营成本360000003836316640881699435658319销售和管理费用2500000025812500266514062751757710折旧1716000029400000210000001500000011税前利润19600000105425622235746632020633127840000421702589429861280825313净利润1176000063255371341448019212380更换轮胎市场合计年价格市场容量市场份额销售量销售收入价格市场容量市场份额销售量销售收入单位成本360080000001188000031680000590014000000811200006608000097760000180036000000375382000001190200033852060615114280000811424007026616810411822818773836316639138405000119245503617304264121456560081165248747175301108905721956408816994079861512511947664386531566685148569128118855379450885118104041203943565831销售收入97760000104118228110890572118104041经营成本36000000383631664088169943565831销售和管理费用25000000258125002665140627517577所得税78400004217025894298612808253经营现金流量28920000357255373441448034212380投资的
公司理财(罗斯)第15章(英文)
15-6
Payoff to shareholders after Restructuring I II III
Capital gains -$250 (∆Equity after ($750-1000) restructuring) Dividends 500
Net gain or loss to stockholders
15-0
CHAPTER
15
© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.
Capital Structure: Basic Concepts
/jmjiaoxue
McGraw-Hill/Irwin Corporate Finance, 7/e
Assets Debt Equity Debt/Equity ratio Interest rate Shares outstanding Share price
McGraw-Hill/Irwin Corporate Finance, 7/e
0.00 n/a 400 $50
8% 240 $50
© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.
2,000 3,000
EBIT in dollars, no taxes
© 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.
15-14
Since EPS = (EBIT – I)/Shares when there is no tax, we compute the break-even EBIT point as: (EBIT)/400 = (EBIT – 640)/240 => Break-even EBIT = $1,600
罗斯—公司理财第七版中文PPT—第三章
$20,000
$0 $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000
今天的消费
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3.3 竞争性的市场
• 在一个竞争的市场上： – 交易是没有成本的。 – 可以利用关于借贷的信息。 – 有很多的交易者；任何个人都不能够改变市场 的价格。 • 在一个竞争的市场上，只能存在一种均衡的利 率—否则就会产生套利的 机会。
1
内容提要
3.1 金融市场经济 3.2 消费时间的选择 3.3 竞争性的市场 3.4 基本原理 3.5 实践这些原理 3.6 投资决策的示例 3.7 公司的投资决策 3.8 结论与总结
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3.1 金融市场经济
• 对于不同的人以及不同的机构而言，他们的收入 流是有差别的，跨期的消费偏好也不相同。 • 由于这个原因，就产生了一个资金市场。资金的 价格就是利息率。
$55,000
$0 $0 $15,000 $40,000 $90,000
今天的消费
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3.6 投资决策示例
注意，我们因可以在今天或明年拥有 更多的消费而改善了境况。
在t+1时的消费
$101,500 $99,000 $85,000 $82,500
$101,500 = $15,000×(1.10) + $85,000 $92,273 = $15,000 + $85,000÷(1.10)
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Dr. Xiao Ming USTB
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$30,000×(1+r)
公司理财_罗斯_第七版Chapter 18 Dividends_and_Other_Payouts (1)
18-3
Procedure for Cash Dividend Payment
25 Oct. 1 Nov. 2 Nov. 6 Nov. 7 Dec.
McGraw-Hill/Irwin Corporate Finance, 7/e © 2005 The McGraw-Hill Companies, Inc. All Rights Reserved.
18-6
Homemade Dividends
Bianchi Inc. is a $42 stock about to pay a $2 cash dividend. Bob Investor owns 80 shares and prefers $3 cash dividend. Bob’s homemade dividend strategy:
The value of the firm was $2m × $15 per share = $30 m. After the dividend, the value will remain the same.
Price per share = $30m/ 3m shares = $10 per share
A compelling case can be made that dividend policy is irrelevant. Since investors do not need dividends to convert shares to cash they will not pay higher prices for firms with higher dividend payouts. In other words, dividend policy will have no impact on the value of the firm because investors can create whatever income stream they prefer by using homemade dividends.
英文版罗斯公司理财习题答案
英文版罗斯公司理财习题答案C h a p008(总45页)-本页仅作为预览文档封面，使用时请删除本页-CHAPTER 8MAKING CAPITAL INVESTMENT DECISIONSAnswers to Concepts Review and Critical Thinking Questions1.In this context, an opportunity cost refers to the value of an asset or other input that will be used ina project. The relevant cost is what the asset or input is actually worth today, not, for example,what it cost to acquire.2. a.Yes, the reduction in the sales of the company’s other products, referred to as erosion, andshould be treated as an incremental cash flow. These lost sales are included because they area cost (a revenue reduction) that the firm must bear if it chooses to produce the new product.b. Yes, expenditures on plant and equipment should be treated as incremental cash flows. Theseare costs of the new product line. However, if these expenditures have already occurred, they are sunk costs and are not included as incremental cash flows.c. No, the research and development costs should not be treated as incremental cash flows. Thecosts of research and development undertaken on the product during the past 3 years are sunk costs and 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.d. Yes, the annual depreciation expense should be treated as an incremental cash flow.Depreciation expense must be taken into account when calculating the cash flows related to a given project. While depreciation is not a cash expense that directly affects cash flow, it decreases a firm’s net income and hence, lowers its tax bill for the year. Because of this depreciation tax shield, the firm has more cash on hand at the end of the year than it would have had without expensing depreciation.e.No, dividend payments should not be treated as incremental cash flows. A firm’s decision topay or not pay dividends is independent of the decision to accept or reject any given investment project. For this reason, it is not an incremental cash flow to a given project.Dividend policy is discussed in more detail in later chapters.f.Yes, the resale value of plant and equipment at the end of a project’s life should be treated asan incremental cash flow. The price at which the firm sells the equipment is a cash inflow, andany difference between the book value of the equipment and its sale price will create gains orlosses that result in either a tax credit or liability.g.Yes, salary and medical costs for production employees hired for a project should be treatedas incremental cash flows. The salaries of all personnel connected to the project must be included as costs of that project.3.Item I is a relevant cost because the opportunity to sell the land is lost if the new golf club isproduced. Item II is also relevant because the firm must take into account the erosion of sales of existing products when a new product is introduced. If the firm produces the new club, the earnings from the existing clubs will decrease, effectively creating a cost that must be included in the decision. Item III is not relevant because the costs of Research and Development are sunk costs.Decisions made in the past cannot be changed. They are not relevant to the production of the new clubs.4.For tax purposes, a firm would choose MACRS because it provides for larger depreciationdeductions earlier. These larger deductions reduce taxes, but have no other cash consequences.Notice that the choice between MACRS and straight-line is purely a time value issue; the total depreciation is the same; only the timing differs.5.It’s probably only a mild over-simplification. Current liabilities will all be paid, presumably. The cashportion of current assets will be retrieved. Some receivables won’t be col lected, and some inventory will not be sold, of course. Counterbalancing these losses is the fact that inventory sold above cost (and not replaced at the end of the project’s life) acts to increase working capital. These effects tend to offset one another.6.Management’s discretion to set the firm’s capital structure is applicable at the firm level. Since anyone particular project could be financed entirely with equity, another project could be financed with debt, and the firm’s overall capital structure remains unchanged, financing costs are not relevant in the analysis of a project’s incremental cash flows according to the stand-alone principle.7.The EAC approach is appropriate when comparing mutually exclusive projects with different livesthat will be replaced when they wear out. This type of analysis is necessary so that the projects have a common life span over which they can be compared; in effect, each project is assumed to exist over an infinite horizon of N-year repeating projects. Assuming that this type of analysis is valid implies that the project cash flows remain the same forever, thus ignoring the possible effects of, among other things: (1) inflation, (2) changing economic conditions, (3) the increasing unreliability of cash flow estimates that occur far into the future, and (4) the possible effects of future technology improvement that could alter the project cash flows.8.Depreciation is a non-cash expense, but it is tax-deductible on the income statement. Thusdepreciation causes taxes paid, an actual cash outflow, to be reduced by an amount equal to the depreciation tax shield, t c D. A reduction in taxes that would otherwise be paid is the same thing asa cash inflow, so the effects of the depreciation tax shield must be added in to get the totalincremental aftertax cash flows.9.There are two particularly important considerations. The first is erosion. Will the “essentialized”book simply displace copies of the existing book that would have otherwise been sold This is of special concern given the lower price. The second consideration is competition. Will other publishers step in and produce such a product If so, then any erosion is much less relevant. A particular concern to book publishers (and producers of a variety of other product types) is that the publisher only makes money from the sale of new books. Thus, it is important to examine whether the new book would displace sales of used books (good from the publisher’s perspective) or new books (not good). The concern arises any time there is an active market for used product.10.Definitely. The damage to Porsche’s reputation is definitely a factor the company needed toconsider. If the reputation was damaged, the company would have lost sales of its existing car lines.11.One company may be able to produce at lower incremental cost or market better. Also, of course,one of the two may have made a mistake!12.Porsche would recognize that the outsized profits would dwindle as more products come to marketand competition becomes more intense.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.Basicing the tax shield approach to calculating OCF, we get:OCF = (Sales – Costs)(1 – t C) + t C DepreciationOCF = [($5 × 2,000 – ($2 × 2,000)](1 – + ($10,000/5)OCF = $4,600So, the NPV of the project is:NPV = –$10,000 + $4,600(PVIFA17%,5)NPV = $4,7172.We will use the bottom-up approach to calculate the operating cash flow for each year. We alsomust be sure to include the net working capital cash flows each year. So, the total cash flow each year will be:Year 1Year 2Year 3Year 4 Sales,000,000,000,000Costs2,0002,0002,0002,000Depreciation 2,500 2,500 2,500 2,500EBT,500,500,500,500Tax 850 850 850 850Net income,650,650,650,650OCF0,150,150,150,150Capital spending–,0000000NWC–200–250–300–200 950Incremental cashflow–,200,900,850,950,100The NPV for the project is:NPV = –,200 + ,900 / + ,850 / + ,950 / + ,100 /NPV = ,3. Using the tax shield approach to calculating OCF, we get:OCF = (Sales – Costs)(1 – t C) + t C DepreciationOCF = (R2,400,000 – 960,000)(1 – + (R2,700,000/3)OCF = R1,278,000So, the NPV of the project is:NPV = –R2,700,000 + R1,278,000(PVIFA15%,3)NPV = R217,4.The cash outflow at the beginning of the project will increase because of the spending on NWC. Atthe end of the project, the company will recover the NWC, so it will be a cash inflow. The sale of the equipment will result in a cash inflow, but we also must account for the taxes which will be paid on this sale. So, the cash flows for each year of the project will be:Year Cash Flow0– R3,000,000 = –– 300K11,278,00021,278,00031,725,000 = R1,278,000 + 300,000 + 210,000 + (0 – 210,000)(.30) And the NPV of the project is:NPV = –R3,000,000 + R1,278,000(PVIFA15%,2) + (R1,725,000 /NPV = R211,5. First we will calculate the annual depreciation for the equipment necessary for the project. Thedepreciation amount each year will be:Year 1 depreciation = = R899,100Year 2 depreciation = = R1,198,800Year 3 depreciation = = R399,600So, the book value of the equipment at the end of three years, which will be the initial investment minus the accumulated depreciation, is:Book value in 3 years = – (R899,100 + 1,198,800 + 399,600)Book value in 3 years = R202,500The asset is sold at a gain to book value, so this gain is taxable.Aftertax salvage value = R202,500 + (R202,500 – 210,000)Aftertax salvage value = R207,750To calculate the OCF, we will use the tax shield approach, so the cash flow each year is:OCF = (Sales – Costs)(1 – t C) + t C DepreciationYear Cash Flow0– R3,000,000 = –– 300K11,277, = (R1,440,000)(.70) + (R899,100)21,367, = (R1,440,000)(.70) + (R1,198,800)31,635, = (R1,440,000)(.70) + (R399,600) + R207,750 + 300,000 Remember to include the NWC cost in Year 0, and the recovery of the NWC at the end of the project. The NPV of the project with these assumptions is:NPV = – + (R1,277,730/ + (R1,367,640/ + (R1,635,630/NPV = R220,6. First, we will calculate the annual depreciation of the new equipment. It will be:Annual depreciation charge = €925,000/5Annual depreciation charge = €185,000The aftertax salvage value of the equipment is:Aftertax salvage value = €90,000(1 –Aftertax salvage value = €58,500Using the tax shield approach, the OCF is:OCF = €360,000(1 – + (€185,000)OCF = €298,750Now we can find the project IRR. There is an unusual feature that is a part of this project. Accepting this project means that we will reduce NWC. This reduction in NWC is a cash inflow at Year 0. This reduction in NWC implies that when the project ends, we will have to increase NWC. So, at the end of the project, we will have a cash outflow to restore the NWC to its level before the project. We also must include the aftertax salvage value at the end of the project. The IRR of the project is:NPV = 0 = –€925,000 + 125,000 + €298,750(PVIFA IRR%,5) + [(€58,500 – 125,000) / (1+IRR)5]IRR = %7.First, we will calculate the annual depreciation of the new equipment. It will be:Annual depreciation = £390,000/5Annual depreciation = £78,000Now, we calculate the aftertax salvage value. The aftertax salvage value is the market price minus (or plus) the taxes on the sale of the equipment, so:Aftertax salvage value = MV + (BV – MV)t cVery often, the book value of the equipment is zero as it is in this case. If the book value is zero, the equation for the aftertax salvage value becomes:Aftertax salvage value = MV + (0 – MV)t cAftertax salvage value = MV(1 – t c)We will use this equation to find the aftertax salvage value since we know the book value is zero. So, the aftertax salvage value is:Aftertax salvage value = £60,000(1 –Aftertax salvage value = £39,600Using the tax shield approach, we find the OCF for the project is:OCF = £120,000(1 – + (£78,000)OCF = £105,720Now we can find the project NPV. Notice that we include the NWC in the initial cash outlay. The recovery of the NWC occurs in Year 5, along with the aftertax salvage value.NPV = –£390,000 – 28,000 + £105,720(PVIFA10%,5) + [(£39,600 + 28,000) / ]NPV = £24,8.To find the BV at the end of four years, we need to find the accumulated depreciation for the firstfour years. We could calculate a table with the depreciation each year, but an easier way is to add the MACRS depreciation amounts for each of the first four years and multiply this percentage times the cost of the asset. We can then subtract this from the asset cost. Doing so, we get:BV4 = $9,300,000 – 9,300,000 + + +BV4 = $1,608,900The asset is sold at a gain to book value, so this gain is taxable.Aftertax salvage value = $2,100,000 + ($1,608,900 – 2,100,000)(.40)Aftertax salvage value = $1,903,5609. We will begin by calculating the initial cash outlay, that is, the cash flow at Time 0. To undertake theproject, we will have to purchase the equipment and increase net working capital. So, the cash outlay today for the project will be:Equipment–€2,000,000NWC–100,000Total–€2,100,000Using the bottom-up approach to calculating the operating cash flow, we find the operating cash flow each year will be:Sales€1,200,000Costs300,000Depreciation 500,000EBT€400,000Tax 140,000Net income€260,000The operating cash flow is:OCF = Net income + DepreciationOCF = €260,000 + 500,000OCF = €760,000To find the NPV of the project, we add the present value of the project cash flows. We must be sure to add back the net working capital at the end of the project life, since we are assuming the net working capital will be recovered. So, the project NPV is:NPV = –€2,100,000 + €760,000(PVIFA14%,4) + €100,000 /NPV = €173,10.We will need the aftertax salvage value of the equipment to compute the EAC. Even though theequipment for each product has a different initial cost, both have the same salvage value. The aftertax salvage value for both is:Both cases: aftertax salvage value = $20,000(1 – = $13,000To calculate the EAC, we first need the OCF and NPV of each option. The OCF and NPV for Techron I is:OCF = – $34,000(1 – + ($210,000/3) = $2,400NPV = –$210,000 + $2,400(PVIFA14%,3) + ($13,000/ = –$195,EAC = –$195, / (PVIFA14%,3) = –$84,And the OCF and NPV for Techron II is:OCF = – $23,000(1 – + ($320,000/5) = $7,450NPV = –$320,000 + $7,450(PVIFA14%,5) + ($13,000/ = –$287,EAC = –$287, / (PVIFA14%,5) = –$83,The two milling machines have unequal lives, so they can only be compared by expressing both on an equivalent annual basis, which is what the EAC method does. Thus, you prefer the Techron II because it has the lower (less negative) annual cost.Intermediate11.First, we will calculate the depreciation each year, which will be:D1 = ¥480,000 = ¥96,000D2 = ¥480,000 = ¥153,600D3 = ¥480,000 = ¥92,160D4 = ¥480,000 = ¥55,200The book value of the equipment at the end of the project is:BV4 = ¥480,000 – (¥96,000 + 153,600 + 92,160 + 55,200) = ¥83,040The asset is sold at a loss to book value, so this creates a tax refund.After-tax salvage value = ¥70,000 + (¥83,040 – 70,000) = ¥74,So, the OCF for each year will be:OCF1 = ¥160,000(1 – + (¥96,000) = ¥137,OCF2 = ¥160,000(1 – + (¥153,600) = ¥157,OCF3 = ¥160,000(1 – + (¥92,160) = ¥136,OCF4 = ¥160,000(1 – + (¥55,200) = ¥123,Now we have all the necessary information to calculate the project NPV. We need to be careful with the NWC in this project. Notice the project requires ¥20,000 of NWC at the beginning, and ¥3,000 more in NWC each successive year. We will subtract the ¥20,000 from the initial cash flow, and subtract ¥3,000 each year from the OCF to account for this spending. In Year 4, we will add back the total spent on NWC, which is ¥29,000. The ¥3,000 spent on NWC capital during Year 4 is irrelevant. Why Well, during this year the project required an additional ¥3,000, but we would get the money back immediately. So, the net cash flow for additional NWC would be zero. With all this, the equation for the NPV of the project is:NPV = – ¥480,000 – 20,000 + (¥137,600 – 3,000)/ + (¥157,760 – 3,000)/+ (¥136,256 – 3,000)/ + (¥123,320 + 29,000 + 74,564)/NPV = –¥38,12.If we are trying to decide between two projects that will not be replaced when they wear out, theproper capital budgeting method to use is NPV. Both projects only have costs associated with them, not sales, so we will use these to calculate the NPV of each project. Using the tax shield approach to calculate the OCF, the NPV of System A is:OCF A = –元120,000(1 – + (元430,000/4)OCF A = –元42,650NPV A = –元430,000 –元42,650(PVIFA20%,4)NPV A = –元540,And the NPV of System B is:OCF B = –元80,000(1 – + (元540,000/6)OCF B = –元22,200NPV B = –元540,000 –元22,200(PVIFA20%,6)NPV B = –元613,If the system will not be replaced when it wears out, then System A should be chosen, because it has the more positive NPV.13.If the equipment will be replaced at the end of its useful life, the correct capital budgetingtechnique is EAC. Using the NPVs we calculated in the previous problem, the EAC for each system is: EAC A = –元540, / (PVIFA20%,4)EAC A = –元208,EAC B = –元613, / (PVIFA20%,6)EAC B = –元184,If the conveyor belt system will be continually replaced, we should choose System B since it has the more positive NPV.14.Since we need to calculate the EAC for each machine, sales are irrelevant. EAC only uses the costsof operating the equipment, not the sales. Using the bottom up approach, or net income plus depreciation, method to calculate OCF, we get:Machine A Machine BVariable costs–₪3,150,000–₪2,700,000Fixed costs–150,000–100,000Depreciation–350,000–500,000EBT–₪3,650,000–₪3,300,000Tax 1,277,500 1,155,000Net income–₪2,372,500–₪2,145,000+ Depreciation 350,000 500,000OCF–₪2,022,500–₪1,645,000The NPV and EAC for Machine A is:NPV A = –₪2,100,000 –₪2,022,500(PVIFA10%,6)NPV A = –₪10,908,EAC A = –₪10,908, / (PVIFA10%,6)EAC A = –₪2,504,And the NPV and EAC for Machine B is:NPV B = –₪4,500,000 – 1,645,000(PVIFA10%,9)NPV B = –₪13,973,EAC B = –₪13,973, / (PVIFA10%,9)EAC B = –₪2,426,You should choose Machine B since it has a more positive EAC.15.When we are dealing with nominal cash flows, we must be careful to discount cash flows at thenominal interest rate, and we must discount real cash flows using the real interest rate. Project A’s cash flows are in real terms, so we need to find the real interest rate. Using the Fisher equation, the real interest rate is:1 + R = (1 + r)(1 + h)= (1 + r)(1 + .04)r = .1058 or %So, the NPV of Project A’s real cash flows, discounting at the real interest rate, is:NPV = –฿40,000 + ฿20,000 / + ฿15,000 / + ฿15,000 /NPV = ฿1,Project B’s cash flow are in nominal terms, so the NPV discount at the nominal interest rate is:NPV = –฿50,000 + ฿10,000 / + ฿20,000 / + ฿40,000 /NPV = ฿We should accept Project A if the projects are mutually exclusive since it has the highest NPV.16.To determine the value of a firm, we can simply find the present value of the firm’s future cashflows. No depreciation is given, so we can assume depreciation is zero. Using the tax shield approach, we can find the present value of the aftertax revenues, and the present value of the aftertax costs. The required return, growth rates, price, and costs are all given in real terms.Subtracting the costs from the revenues will give us the value of the firm’s cash flows. We must calculate the present value of each separately since each is growing at a different rate. First, we will find the present value of the revenues. The revenues in year 1 will be the number of bottles sold, times the price per bottle, or:Aftertax revenue in year 1 in real terms = (2,000,000 × $(1 –Aftertax revenue in year 1 in real terms = $1,650,000Revenues will grow at six percent per year in real terms forever. Apply the growing perpetuity formula, we find the present value of the revenues is:PV of revenues = C1 / (R–g)PV of revenues = $1,650,000 / –PV of revenues = $41,250,000The real aftertax costs in year 1 will be:Aftertax costs in year 1 in real terms = (2,000,000 × $(1 –Aftertax costs in year 1 in real terms = $858,000Costs will grow at five percent per year in real terms forever. Applying the growing perpetuity formula, we find the present value of the costs is:PV of costs = C1 / (R–g)PV of costs = $858,000 / –PV of costs = $17,160,000Now we can find the value of the firm, which is:Value of the firm = PV of revenues – PV of costsValue of the firm = $41,250,000 – 17,160,000Value of the firm = $24,090,00017. To calculate the nominal cash flows, we simple increase each item in the income statement by theinflation rate, except for depreciation. Depreciation is a nominal cash flow, so it does not need to be adjusted for inflation in nominal cash flow analysis. Since the resale value is given in nominal terms as of the end of year 5, it does not need to be adjusted for inflation. Also, no inflation adjustment is needed for either the depreciation charge or the recovery of net working capital since these items are already expressed in nominal terms. Note that an increase in required net working capital is a negative cash flow whereas a decrease in required net working capital is a positive cash flow. The nominal aftertax salvage value is:Market price$30,000Tax on sale–10,200Aftertax salvage value$19,800Remember, to calculate the taxes paid (or tax credit) on the salvage value, we take the book value minus the market value, times the tax rate, which, in this case, would be:Taxes on salvage value = (BV – MV)t CTaxes on salvage value = ($0 – 30,000)(.34)Taxes on salvage value = –$10,200Now we can find the nominal cash flows each year using the income statement. Doing so, we find:Year 0Year 1Year 2Year 3Year 4Year 5 Sales$200,000$206,000$212,180$218,545$225,102 Expenses50,00051,50053,04554,63656,275 Depreciation 50,000 50,000 50,000 50,000 50,000 EBT$100,000$104,500$109,135$113,909$118,826 Tax 34,000 35,530 37,106 38,729 40,401 Net income$66,000$68,970$72,029$75,180$78,425 OCF$116,000$118,970$122,029$125,180$128,425Capital spending–$250,000$19,800NWC–10,000 10,000Total cash flow–$260,000$116,000$118,970$122,029$125,180$158,22518.The present value of the company is the present value of the future cash flows generated by thecompany. Here we have real cash flows, a real interest rate, and a real growth rate. The cash flows are a growing perpetuity, with a negative growth rate. Using the growing perpetuity equation, the present value of the cash flows are:PV = C1 / (R–g)PV = $120,000 / [.11 – (–.07)]PV = $666,19.To find the EAC, we first need to calculate the NPV of the incremental cash flows. We will beginwith the aftertax salvage value, which is:Taxes on salvage value = (BV – MV)t CTaxes on salvage value = (€0 – 10,000)(.34)Taxes on salvage value = –€3,400Market price€10,000Tax on sale–3,400Aftertax salvage value€6,600Now we can find the operating cash flows. Using the tax shield approach, the operating cash flow each year will be:OCF = –€5,000(1 – + (€45,000/3)OCF = €1,800So, the NPV of the cost of the decision to buy is:NPV = –€45,000 + €1,800(PVIFA12%,3) + (€6,600/NPV = –€35,In order to calculate the equivalent annual cost, set the NPV of the equipment equal to an annuity with the same economic life. Since the project has an economic life of three years and is discounted at 12 percent, set the NPV equal to a three-year annuity, discounted at 12 percent.EAC = –€35, / (PVIFA12%,3)EAC = –€14,20.We will find the EAC of the EVF first. There are no taxes since the university is tax-exempt, so themaintenance costs are the operating cash flows. The NPV of the decision to buy one EVF is:NPV = –₩8,000 –₩2,000(PVIFA14%,4)NPV = –₩13,In order to calculate the equivalent annual cost, set the NPV of the equipment equal to an annuity with the same economic life. Since the project has an economic life of four years and is discounted at 14 percent, set the NPV equal to a three-year annuity, discounted at 14 percent. So, the EAC per unit is:EAC = –₩13, / (PVIFA14%,4)EAC = –₩4,Since the university must buy 10 of the word processors, the total EAC of the decision to buy the EVF word processor is:Total EAC = 10(–₩4,Total EAC = –₩47,Note, we could have found the total EAC for this decision by multiplying the initial cost by the number of word processors needed, and multiplying the annual maintenance cost of each by the same number. We would have arrived at the same EAC.We can find the EAC of the AEH word processors using the same method, but we need to include the salvage value as well. There are no taxes on the salvage value since the university is tax-exempt, so the NPV of buying one AEH will be:NPV = –₩5,000 –₩2,500(PVIFA14%,3) + (₩500/NPV = –₩10,So, the EAC per machine is:EAC = –₩10, / (PVIFA14%,3)EAC = –₩4,Since the university must buy 11 of the word processors, the total EAC of the decision to buy the AEH word processor is:Total EAC = 11(–₩4,Total EAC = –₩49,The university should buy the EVF word processors since the EAC is lower. Notice that the EAC of the AEH is lower on a per machine basis, but because the university needs more of these word processors, the total EAC is higher.21.We will calculate the aftertax salvage value first. The aftertax salvage value of the equipment willbe:Taxes on salvage value = (BV – MV)t CTaxes on salvage value = (₫0 – 100,000)(.34)Taxes on salvage value = –₫34,000Market price₫100,000Tax on sale–34,000Aftertax salvage value₫66,000Next, we will calculate the initial cash outlay, that is, the cash flow at Time 0. To undertake the project, we will have to purchase the equipment. The new project will decrease the net working capital, so this is a cash inflow at the beginning of the project. So, the cash outlay today for the project will be:Equipment–₫500,000NWC 100,000Total–₫400,000Now we can calculate the operating cash flow each year for the project. Using the bottom up approach, the operating cash flow will be:Saved salaries₫120,000Depreciation 100,000EBT₫20,000Taxes 6,800Net income₫13,200And the OCF will be:OCF = ₫13,200 + 100,000OCF = ₫113,200Now we can find the NPV of the project, which is:NPV = –₫500,000 + ₫113,200(PVIFA12%,5) + ₫66,000 /NPV = –₫11,22.Replacement decision analysis is the same as the analysis of two competing projects, in this case,keep the current equipment, or purchase the new equipment. We will consider the purchase of the new machine first.Purchase new machine:The initial cash outlay for the new machine is the cost of the new machine, plus the increased net working capital. So, the initial cash outlay will be:Purchase new machine–$32,000,000Net working capital–500,000Total–$32,500,000Next, we can calculate the operating cash flow created if the company purchases the new machine.The saved operating expense is an incremental cash flow, so using the pro forma income statement, and adding depreciation to net income, the operating cash flow created by purchasing the new machine each year will be:Operating expense$5,000,000Depreciation8,000,000EBT$13,000,000Taxes5,070,000Net income$7,930,000OCF$15,930,000So, the NPV of purchasing the new machine, including the recovery of the net working capital, is: NPV = –$32,500,000 + $15,930,000(PVIFA10%,4) + $500,000 /NPV = $18,337,And the IRR is:0 = –$32,500,000 + $15,930,000(PVIFA IRR,4) + $500,000 / (1 + IRR)4Using a spreadsheet or financial calculator, we find the IRR is:IRR = %Now we can calculate the decision to keep the old machine:。
公司理财(罗斯)第3章
（二）长期偿债能力
（二）长期偿债能力
长期债务与权益总额被称作资本化总额
利息保障倍数（利息覆盖率） TIE (times interest earned)
现金覆盖率= （EBIT+折旧）÷利息
EBDIT（折旧前息税前利润）
＝（691+276）/141＝6.9
（三）营运能力指标（资产管理计量指标）
总资产周转率是衡量一个公司的资产利用率–就 是怎样有效利用资产
权益乘数是一个财务杠杆比率
例:说明两公司02年ROE差异原因,伊利02与03年的变动
例1:说明两公司 净资产
02年ROE差异原因, 伊利02与03年的变
收益率
动
ROE
伊利03
11.9
销售利 总资产 权益乘 润率 周转率 数
3.17 1.82 2.06
故事启示
态度决定人生
面对同一个信息，企业经理人往往也 会作出不同的解读。
因此，企业经理人解读财务数字注意 事项：
（1）独立思考
（2）财报主要功能是管理阶层“问问 题”的起点—例外管理，而不是得到 答案的工具。“魔鬼都躲在细节里”！ 财报分析必须了解公司的营运模式， 不宜以单一财务数字或比率妄下结论。
同比报表,有利于在不同规模的公司 之间做比较 财务报表可以用于分析财务趋势---同基报表,有利于在公司的不同时 期比较
比率分析
(1)短期偿债能力比率 (2)长期偿债比率 (3)营运能力比率 (4)盈利能力比率 (5)市场价值比率
财务比率分析
几点说明 比率分析剔除了公司规模的影响
比率可以想象为侦探小说中的线索。
5.2
留存收益增加
10.5
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Mini Case: Goodweek Tires, Inc.
Assumptions
PP&E Investment 120,000,000 Useful life of PP&E Investment (years) 7 Salvage Value of PP&E Investment 51,428,571 Annual Depreciation Expense (7 year MACRS)
Ending Book Year MACRS % Depreciation Value
1 14.29% 17,148,000 102,852,000
2 24.49% 29,388,000 73,464,000
3 17.49% 20,988,000 52,476,000 Last year of project 412.49% 14,988,000 37,488,000
5 8.93% 10,716,000 26,772,000
6 8.93% 10,716,000 16,056,000
7 8.93% 10,716,000 5,340,000
8 4.45% 5,340,000 0 SuperTread price/unit in OEM market (year 1) 36.00 SuperTread price/unit in Replacement market (year 1) 59.00 SuperTread cost/unit (year 1) 18.00
Year 1 marketing and admin costs 25,000,000 Annual inflation rate 3.25% Corporate Tax rate 40.00% Beta (1/24/97 Valueline) 1.30 Rf (30 year U.S. Treasury Bond) 5.50% Rm (S&P 500 30 year average) 13.50% Re (from CAPM) R e= R f+ e[ R M - R f ] = 0.055 + 1.3[ 0.135 - 0.055 ] = 15.90% 15.90% Year 1 OEM Market for SuperTread (2 million new cars x 4 tires/car) 8,000,000 OEM Market growth 2.50% SuperTread share of OEM market 11.00%
Year 1 Replacement Market for SuperTread 14,000,000 Replacement Market growth 2.00% SuperTread share of Replacement market 8.00%
Year 0 1 2 3 4
Sales
OEM Market
Units 880,000 902,000 924,550 947,664 Price 36.00 37.53 39.13 40.79 Total OEM Market 31,680,000 33,852,060 36,173,042 38,653,156
Replacement Market
Units 1,120,000 1,142,400 1,165,248 1,188,553 Price 59.00 61.51 64.12 66.85 Total Replacement Market 66,080,000 70,266,168 74,717,530 79,450,885
Total Sales 97,760,000 104,118,228 110,890,572 118,104,041
Variable Costs
2,000,000 2,044,400 2,089,798 2,136,217 Units (OEM +
Replacement)
Cost 18.00 18.77 19.56 20.39 Total Variable Costs 36,000,000 38,363,166 40,881,699 43,565,831 SG&A 25,000,000 25,812,500 26,651,406 27,517,577 Depreciation 17,148,000 29,388,000 20,988,000 14,988,000 EBIT 19,612,000 10,554,562 22,369,466 32,032,633 Interest 0 0 0 0 Tax (40%) 7,844,800 4,221,825 8,947,786 12,813,053 Net Income 11,767,200 6,332,737 13,421,680 19,219,580
EBIT + Dep - Taxes 28,915,200 35,720,737 34,409,680 34,207,580 Less: Change in NWC 11,000,000 3,664,000 953,734 1,015,852 (16,633,586) Less: Capital Spending 120,000,000
(45,852,342.60) CF from Assets: (131,000,000) 25,251,200 34,767,003 33,393,828 96,693,508.60 Discounted CF from
21,787,058 25,882,152 21,449,437 53,587,509.73 Assets
Total Discounted CF from Assets
122,706,156.20
Less: Investment (131,000,000)
Net Present Value )
$(8,293,843.83)
[Note:The time 4 entry for capital spending comes from:
Salvage value-Tax on excess depreciation
=$51,428,571-($51,428,571 – 37,488,000)(0.4)
Results
[Notes:
1. After three years, we need $37,587,99 to reach payback; we get $96,693,508.60
=> extra fraction of year is 0.388
2. AAR = Average income/Average investment
= $12,685,299.25/$16,753,532.50
= 0.1087
3. PI = PV/Initial investment
= $122,706,146.20/$131,000,000
= 0.937。