资本成本 公司财务和投资理论 pdf
合集下载
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
! !
5
Two criteria
The cost of capital!
（1）the maximization of profits
firm !
the net profit!
increase!
physical asset!
worth acquiring!
If expected rate of return or yield >the rate of interest
uncertainty! ! the model of the firm constructed via this certainty or certainty-equivalent For example: Keynesian aggregate investment function Drawbacks: (1) macroeconomic level
Use!
Obtain!
! ! ! The holders' right to a pro-rata share! ! ! ! ! !
Acquire assets! !
Yields are uncertain! !
Pure debt instruments! !
Money-fixed claims! !
Байду номын сангаас
Pure equity issues! !
! ! !
The cost of capital!
2
?
!
to a firm
The cost of capital!
This question has vexed at least three classes of economists： （1）the corporation finance specialist （2） the managerial economist （3） the economic theorist! ! ! ! ! ! ! !
6
The cost of capital!
（2）the maximization of market value
! the value of the owners' equity! ! !
physical asset!
increase!
physical asset!
worth acquiring!
The firm!
partialequilibrium! ! !
Industry!
13
Thanks for your attention!
14
10
Corporation Finance!
Solutions：it is not necessary to answer the questions Testing:
The financial! project!
Raising the market value of the firm’s shares
Yes!
No!
worth undertaking!
return< marginal cost of capital!
11
Corporation Finance!
management's decision!
• is free to sell out and reinvest elsewhere!
• disagrees with management & the market over the valuation of the project!
• the capital appreciation !
stockholder!
benefit !
12
Summary!
SectionⅠthe basic theory! SectionⅡthe theory： (1) Answer the cost-of-capital question ! (2) How develop a theory of investment of the firm under conditions of uncertainty! SectionⅢ Conclusion
The American Economic review
THE COST OF CAPITAL CORPORATION FINANCE & THE THEORY OF INVESTMENT
By FRANCO MODIGLIANI
MERTON H. MILLER*
Kang Qi 25th Nov.
Funds!
Corporation Finance!
• How to alternative the profit outcomes of investment and financing decisions? The utility function of expected yield profit maximization the certainty model utility maximization • Drawbacks: (1) Normative (2) analytical purposes • For example (1)It is hard to ascertain the risk preferences of its stockholders and to compromise among their tastes! (2) the economist have difficulties in building a meaningful investment function ! !
(2) Microeconomic level!
! ! ! ! ! 8
the problem of the cost of capital cum risk!
two main lines(in a world of uncertainty )：
（1）govern rational investment
the marginal yield=the market rate of interest
4
The cost of capital!
Familiar proposition !
!
a rational firm
Pushing investment
the marginal yield=the market rate of interest Rational decision-making Certainty equivalent （1）the maximization of profits （2）the maximization of market value! ! !
profit maximization ×unique √a subjective probability distribution √ a plurality of mutually exclusive outcomes! ! no longer has an operational meaning ! 9 !
the market value of the firm > the costs of acquisition
The asset adds— the yield of the asset > the rate of interest capitalized value >its cost!
7
!
Corporation Finance!
3
The cost of capital!
The economic theorist has tended to side-step the essence of cost-of-capital problem by：
Bond 债券 physical assets 实物资产
Yield known & Sure streams
! of capital to the owners of a firm! Given this assumption, the cost ! ! ! !
=the rate of interest on bonds ! ! Familiar proposition !
!
a rational firm
Pushing investment
! ! !
(2)financial policy
Extrapolate to the world of uncertainty profit maximization & market value maximization have equivalent implications in the special case of certainty uncertainty a random variable equivalence vanishes
5
Two criteria
The cost of capital!
（1）the maximization of profits
firm !
the net profit!
increase!
physical asset!
worth acquiring!
If expected rate of return or yield >the rate of interest
uncertainty! ! the model of the firm constructed via this certainty or certainty-equivalent For example: Keynesian aggregate investment function Drawbacks: (1) macroeconomic level
Use!
Obtain!
! ! ! The holders' right to a pro-rata share! ! ! ! ! !
Acquire assets! !
Yields are uncertain! !
Pure debt instruments! !
Money-fixed claims! !
Байду номын сангаас
Pure equity issues! !
! ! !
The cost of capital!
2
?
!
to a firm
The cost of capital!
This question has vexed at least three classes of economists： （1）the corporation finance specialist （2） the managerial economist （3） the economic theorist! ! ! ! ! ! ! !
6
The cost of capital!
（2）the maximization of market value
! the value of the owners' equity! ! !
physical asset!
increase!
physical asset!
worth acquiring!
The firm!
partialequilibrium! ! !
Industry!
13
Thanks for your attention!
14
10
Corporation Finance!
Solutions：it is not necessary to answer the questions Testing:
The financial! project!
Raising the market value of the firm’s shares
Yes!
No!
worth undertaking!
return< marginal cost of capital!
11
Corporation Finance!
management's decision!
• is free to sell out and reinvest elsewhere!
• disagrees with management & the market over the valuation of the project!
• the capital appreciation !
stockholder!
benefit !
12
Summary!
SectionⅠthe basic theory! SectionⅡthe theory： (1) Answer the cost-of-capital question ! (2) How develop a theory of investment of the firm under conditions of uncertainty! SectionⅢ Conclusion
The American Economic review
THE COST OF CAPITAL CORPORATION FINANCE & THE THEORY OF INVESTMENT
By FRANCO MODIGLIANI
MERTON H. MILLER*
Kang Qi 25th Nov.
Funds!
Corporation Finance!
• How to alternative the profit outcomes of investment and financing decisions? The utility function of expected yield profit maximization the certainty model utility maximization • Drawbacks: (1) Normative (2) analytical purposes • For example (1)It is hard to ascertain the risk preferences of its stockholders and to compromise among their tastes! (2) the economist have difficulties in building a meaningful investment function ! !
(2) Microeconomic level!
! ! ! ! ! 8
the problem of the cost of capital cum risk!
two main lines(in a world of uncertainty )：
（1）govern rational investment
the marginal yield=the market rate of interest
4
The cost of capital!
Familiar proposition !
!
a rational firm
Pushing investment
the marginal yield=the market rate of interest Rational decision-making Certainty equivalent （1）the maximization of profits （2）the maximization of market value! ! !
profit maximization ×unique √a subjective probability distribution √ a plurality of mutually exclusive outcomes! ! no longer has an operational meaning ! 9 !
the market value of the firm > the costs of acquisition
The asset adds— the yield of the asset > the rate of interest capitalized value >its cost!
7
!
Corporation Finance!
3
The cost of capital!
The economic theorist has tended to side-step the essence of cost-of-capital problem by：
Bond 债券 physical assets 实物资产
Yield known & Sure streams
! of capital to the owners of a firm! Given this assumption, the cost ! ! ! !
=the rate of interest on bonds ! ! Familiar proposition !
!
a rational firm
Pushing investment
! ! !
(2)financial policy
Extrapolate to the world of uncertainty profit maximization & market value maximization have equivalent implications in the special case of certainty uncertainty a random variable equivalence vanishes