第十七章 杠杆企业的估价与资本预算(PPT 26页)
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The net present value of the project under leverage is:
APV NPV NPVF
4 $19.20
APV$56.50
t1
(1.08)t
A P $ 5 .5 V 6 6 0 .5 3 $ 9 7 .09
So, Pearson should accept the project with debt.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
17-3
APV Example
Consider a project of the Pearson Company, the timing and size of the incremental after-tax cash flows for an allequity firm are:
Baidu Nhomakorabea
17-2
17.1 Adjusted Present Value Approach
APV NPV NPVF
• The value of a project to the firm can be thought of as the value of the project to an unlevered firm (NPV) plus the present value of the financing side effects (NPVF):
17-1
Chapter Outline
17.1 Adjusted Present Value Approach
17.2 Flows to Equity Approach
17.3 Weighted Average Cost of Capital Method
17.4 A Comparison of the APV, FTE, and WACC Approaches
NP loV an$600 t 41$60 (1 .0 .0 8 )8 t(1.4)(1 $.6 0)0 8 4 0
NP loV an$6.3 59
• The second regards the use of debt (the capital structure question).
• This chapter is the nexus of these questions.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
• There are four side effects of financing:
– The Tax Subsidy to Debt – The Costs of Issuing New Securities – The Costs of Financial Distress – Subsidies to Debt Financing
17-0
Prospectus
• Recall that there are three questions in corporate finance.
• The first regards what long-term investments the firm should make (the capital budgeting question).
-$1,000 $125
$250
$375
$500
0
1
2
3
4
The unlevered cost of equity is r0 = 10%: $125$250$375$500
NP 1% 0 V$1,00(0 1.1)0 (1.1)0 2(1.1)0 3(1.1)0 4 NP 1% 0 V$5.5 60
The project would be rejected by an all-equity firm: NPV < 0.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
17-5
APV Example (continued)
• Note that there are two ways to calculate the NPV of the loan. Previously, we calculated the PV of the interest tax shields. Now, let’s calculate the actual NPV of the loan:
17-4
APV Example (continued)
• Now, imagine that the firm finances the project with $600 of debt at rB = 8%.
• Pearson’s tax rate is 40%, so they have an interest tax shield worth TCBrB = .40×$600×.08 = $19.20 each year.
17.5 Capital Budgeting When the Discount Rate Must Be Estimated
17.6 APV Example
17.7 Beta and Leverage
17.8 Summary and Conclusions
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
APV NPV NPVF
4 $19.20
APV$56.50
t1
(1.08)t
A P $ 5 .5 V 6 6 0 .5 3 $ 9 7 .09
So, Pearson should accept the project with debt.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
17-3
APV Example
Consider a project of the Pearson Company, the timing and size of the incremental after-tax cash flows for an allequity firm are:
Baidu Nhomakorabea
17-2
17.1 Adjusted Present Value Approach
APV NPV NPVF
• The value of a project to the firm can be thought of as the value of the project to an unlevered firm (NPV) plus the present value of the financing side effects (NPVF):
17-1
Chapter Outline
17.1 Adjusted Present Value Approach
17.2 Flows to Equity Approach
17.3 Weighted Average Cost of Capital Method
17.4 A Comparison of the APV, FTE, and WACC Approaches
NP loV an$600 t 41$60 (1 .0 .0 8 )8 t(1.4)(1 $.6 0)0 8 4 0
NP loV an$6.3 59
• The second regards the use of debt (the capital structure question).
• This chapter is the nexus of these questions.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
• There are four side effects of financing:
– The Tax Subsidy to Debt – The Costs of Issuing New Securities – The Costs of Financial Distress – Subsidies to Debt Financing
17-0
Prospectus
• Recall that there are three questions in corporate finance.
• The first regards what long-term investments the firm should make (the capital budgeting question).
-$1,000 $125
$250
$375
$500
0
1
2
3
4
The unlevered cost of equity is r0 = 10%: $125$250$375$500
NP 1% 0 V$1,00(0 1.1)0 (1.1)0 2(1.1)0 3(1.1)0 4 NP 1% 0 V$5.5 60
The project would be rejected by an all-equity firm: NPV < 0.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.
17-5
APV Example (continued)
• Note that there are two ways to calculate the NPV of the loan. Previously, we calculated the PV of the interest tax shields. Now, let’s calculate the actual NPV of the loan:
17-4
APV Example (continued)
• Now, imagine that the firm finances the project with $600 of debt at rB = 8%.
• Pearson’s tax rate is 40%, so they have an interest tax shield worth TCBrB = .40×$600×.08 = $19.20 each year.
17.5 Capital Budgeting When the Discount Rate Must Be Estimated
17.6 APV Example
17.7 Beta and Leverage
17.8 Summary and Conclusions
McGraw-Hill/Irwin
Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.