财务管理 (10)

Chapter14CostofCapital,McGraw-Hill/Irwin,Copyright2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.,KeyConceptsandSkills,KnowhowtodetermineafirmscostofequitycapitalKnowhowtodetermineafirmscostofdebtKnowhowtodetermineafirmsoverallcostofcapitalKnowhowtohandleflotationcostsUnderstandpitfallsofoverallcostofcapitalandhowtomanagethem,14-2,ChapterOutline,TheCostofCapital:SomePreliminariesTheCostofEquityTheCostsofDebtandPreferredStockTheWeightedAverageCostofCapitalDivisionalandProjectCostsofCapitalFlotationCostsandtheWeightedAverageCostofCapital,14-3,WhyCostofCapitalIsImportant,WeknowthatthereturnearnedonassetsdependsontheriskofthoseassetsThereturntoaninvestoristhesameasthecosttothecompanyOurcostofcapitalprovidesuswithanindicationofhowthemarketviewstheriskofourassetsKnowingourcostofcapitalcanalsohelpusdetermineourrequiredreturnforcapitalbudgetingprojects,14-4,RequiredReturn,TherequiredreturnisthesameastheappropriatediscountrateandisbasedontheriskofthecashflowsWeneedtoknowtherequiredreturnforaninvestmentbeforewecancomputetheNPVandmakeadecisionaboutwhetherornottotaketheinvestmentWeneedtoearnatleasttherequiredreturntocompensateourinvestorsforthefinancingtheyhaveprovided,14-5,CostofEquity,ThecostofequityisthereturnrequiredbyequityinvestorsgiventheriskofthecashflowsfromthefirmBusinessriskFinancialriskTherearetwomajormethodsfordeterminingthecostofequityDividendgrowthmodelSML,orCAPM,14-6,TheDividendGrowthModelApproach,StartwiththedividendgrowthmodelformulaandrearrangetosolveforRE,14-7,Example:DividendGrowthModel,Supposethatyourcompanyisexpectedtopayadividendof$1.50persharenextyear.Therehasbeenasteadygrowthindividendsof5.1%peryearandthemarketexpectsthattocontinue.Thecurrentpriceis$25.Whatisthecostofequity?,14-8,Example:EstimatingtheDividendGrowthRate,OnemethodforestimatingthegrowthrateistousethehistoricalaverageYearDividendPercentChange20081.23-20091.3020101.3620111.4320121.50,(1.301.23)/1.23=5.7%(1.361.30)/1.30=4.6%(1.431.36)/1.36=5.1%(1.501.43)/1.43=4.9%,Average=(5.7+4.6+5.1+4.9)/4=5.1%,14-9,AdvantagesandDisadvantagesofDividendGrowthModel,AdvantageeasytounderstandanduseDisadvantagesOnlyapplicabletocompaniescurrentlypayingdividendsNotapplicableifdividendsarentgrowingatareasonablyconstantrateExtremelysensitivetotheestimatedgrowthrate-anincreaseingof1%increasesthecostofequityby1%Doesnotexplicitlyconsiderrisk,14-10,TheSMLApproach,UsethefollowinginformationtocomputeourcostofequityRisk-freerate,RfMarketriskpremium,E(RM)RfSystematicriskofasset,14-11,Example-SML,Supposeyourcompanyhasanequitybetaof.58,andthecurrentrisk-freerateis6.1%.Iftheexpectedmarketriskpremiumis8.6%,whatisyourcostofequitycapital?RE=6.1+.58(8.6)=11.1%SincewecameupwithsimilarnumbersusingboththedividendgrowthmodelandtheSMLapproach,weshouldfeelgoodaboutourestimate,14-12,AdvantagesandDisadvantagesofSML,AdvantagesExplicitlyadjustsforsystematicriskApplicabletoallcompanies,aslongaswecanestimatebetaDisadvantagesHavetoestimatetheexpectedmarketriskpremium,whichdoesvaryovertimeHavetoestimatebeta,whichalsovariesovertimeWeareusingthepasttopredictthefuture,whichisnotalwaysreliable,14-13,ExampleCostofEquity,Supposeourcompanyhasabetaof1.5.Themarketriskpremiumisexpectedtobe9%,andthecurrentrisk-freerateis6%.Wehaveusedanalystsestimatestodeterminethatthemarketbelievesourdividendswillgrowat6%peryearandourlastdividendwas$2.Ourstockiscurrentlysellingfor$15.65.Whatisourcostofequity?UsingSML:RE=6%+1.5(9%)=19.5%UsingDGM:RE=2(1.06)/15.65+.06=19.55%,14-14,CostofDebt,ThecostofdebtistherequiredreturnonourcompanysdebtWeusuallyfocusonthecostoflong-termdebtorbondsTherequiredreturnisbestestimatedbycomputingtheyield-to-maturityontheexistingdebtWemayalsouseestimatesofcurrentratesbasedonthebondratingweexpectwhenweissuenewdebtThecostofdebtisNOTthecouponrate,14-15,Example:CostofDebt,Supposewehaveabondissuecurrentlyoutstandingthathas25yearslefttomaturity.Thecouponrateis9%,andcouponsarepaidsemiannually.Thebondiscurrentlysellingfor$908.72per$1,000bond.Whatisthecostofdebt?N=50;PMT=45;FV=1000;PV=-908.72;CPTI/Y=5%;YTM=5(2)=10%,14-16,CostofPreferredStock,RemindersPreferredstockgenerallypaysaconstantdividendeachperiodDividendsareexpectedtobepaideveryperiodforeverPreferredstockisaperpetuity,sowetaketheperpetuityformula,rearrangeandsolveforRPRP=D/P0,14-17,Example:CostofPreferredStock,Yourcompanyhaspreferredstockthathasanannualdividendof$3.Ifthecurrentpriceis$25,whatisthecostofpreferredstock?RP=3/25=12%,14-18,TheWeightedAverageCostofCapital,Wecanusetheindividualcostsofcapitalthatwehavecomputedtogetour“average”costofcapitalforthefirm.This“average”istherequiredreturnonthefirmsassets,basedonthemarketsperceptionoftheriskofthoseassetsTheweightsaredeterminedbyhowmuchofeachtypeoffinancingisused,14-19,CapitalStructureWeights,NotationE=marketvalueofequity=#ofoutstandingsharestimespricepershareD=marketvalueofdebt=#ofoutstandingbondstimesbondpriceV=marketvalueofthefirm=D+EWeightswE=E/V=percentfinancedwithequitywD=D/V=percentfinancedwithdebt,14-20,Example:CapitalStructureWeights,Supposeyouhaveamarketvalueofequityequalto$500millionandamarketvalueofdebtequalto$475million.Whatarethecapitalstructureweights?V=500million+475million=975millionwE=E/V=500/975=.5128=51.28%wD=D/V=475/975=.4872=48.72%,14-21,TaxesandtheWACC,Weareconcernedwithafter-taxcashflows,sowealsoneedtoconsidertheeffectoftaxesonthevariouscostsofcapitalInterestexpensereducesourtaxliabilityThisreductionintaxesreducesourcostofdebtAfter-taxcostofdebt=RD(1-TC)Dividendsarenottaxdeductible,sothereisnotaximpactonthecostofequityWACC=wERE+wDRD(1-TC),14-22,ExtendedExample:WACC-I,EquityInformation50millionshares$80pershareBeta=1.15Marketriskpremium=9%Risk-freerate=5%,DebtInformation$1billioninoutstandingdebt(facevalue)Currentquote=110Couponrate=9%,semiannualcoupons15yearstomaturityTaxrate=40%,14-23,ExtendedExample:WACC-II,Whatisthecostofequity?RE=5+1.15(9)=15.35%Whatisthecostofdebt?N=30;PV=-1,100;PMT=45;FV=1,000;CPTI/Y=3.9268RD=3.927(2)=7.854%Whatistheafter-taxcostofdebt?RD(1-TC)=7.854(1-.4)=4.712%,14-24,ExtendedExample:WACC-III,Whatarethecapitalstructureweights?E=50million(80)=4billionD=1billion(1.10)=1.1billionV=4+1.1=5.1billionwE=E/V=4/5.1=.7843wD=D/V=1.1/5.1=.2157WhatistheWACC?WACC=.7843(15.35%)+.2157(4.712%)=13.06%,14-25,EastmanChemicalI,ClickonthewebsurfertogotoYahoo!FinancetogetinformationonEastmanChemical(EMN)UnderProfileandKeyStatistics,youcanfindthefollowinginformation:#ofsharesoutstandingBookvaluepersharePricepershareBetaUnderanalystsestimates,youcanfindanalystsestimatesofearningsgrowth(useasaproxyfordividendgrowth)TheBondssectionatYahoo!FinancecanprovidetheT-billrateUsethisinformation,alongwiththeCAPMandDGMtoestimatethecostofequity,14-26,EastmanChemicalII,GotoFINRAtogetmarketinformationonEastmanChemicalsbondissuesEnterEastmanChtofindthebondinformationNotethatyoumaynotbeabletofindinformationonallbondissuesduetotheilliquidityofthebondmarketGototheSECwebsitetogetbookvalueinformationfromthefirmsmostrecent10Q,14-27,EastmanChemicalIII,FindtheweightedaveragecostofthedebtUsemarketvaluesifyouwereabletogettheinformationUsethebookvaluesifmarketinformationwasnotavailableTheyareoftenverycloseComputetheWACCUsemarketvalueweightsifavailable,14-28,Example:WorktheWeb,FindestimatesofWACCLookattheassumptionsHowdotheassumptionsimpacttheestimateofWACC?,14-29,Table14.1CostofEquity,14-30,Table14.1CostofDebt,14-31,Table14.1WACC,14-32,DivisionalandProjectCostsofCapital,UsingtheWACCasourdiscountrateisonlyappropriateforprojectsthathavethesameriskasthefirmscurrentoperationsIfwearelookingataprojectthatdoesNOThavethesameriskasthefirm,thenweneedtodeterminetheappropriatediscountrateforthatprojectDivisionsalsooftenrequireseparatediscountrates,14-33,Example:UsingWACCforAllProjects,WhatwouldhappenifweusetheWACCforallprojectsregardlessofrisk?AssumetheWACC=15%ProjectRequiredReturnIRRA20%17%B15%18%C10%12%,14-34,ThePurePlayApproach,FindoneormorecompaniesthatspecializeintheproductorservicethatweareconsideringComputethebetaforeachcompanyTakeanaverageUsethatbetaalongwiththeCAPMtofindtheappropriatereturnforaprojectofthatriskOftendifficulttofindpureplaycompanies,14-35,SubjectiveApproach,ConsidertheprojectsriskrelativetothefirmoverallIftheprojecthasmoreriskthanthefirm,useadiscountrategreaterthantheWACCIftheprojecthaslessriskthanthefirm,useadiscountratelessthantheWACCYoumaystillacceptprojectsthatyoushouldntandrejectprojectsyoushouldaccept,butyourerrorrateshouldbelowerthannotconsideringdifferentialriskatall,14-36,Example:SubjectiveApproach,14-37,FlotationCosts,Therequiredreturndependsontherisk,nothowthemoneyisraisedHowever,thecostofissuingnewsecuritiesshouldnotjustbeignoredeitherBasicApproachComputetheweightedaverageflotationcostUsethetargetweightsbecausethefirmwillissuesecuritiesinthesepercentagesoverthelongterm,14-38,Example:NPVandFlotationCosts,Yourcompanyisconsideringaprojectthatwillcost$1million.Theprojectwillgenerateafter-taxcashflowsof$250,000peryearfor7years.TheWACCis15%,andthefirmstargetD/Eratiois.6Theflotationcostforequityis5%,andtheflotationcostfordebtis3%.WhatistheNPVfortheprojectafteradjustingforflotationcosts?fA=(.375)(3%)+(.625)(5%)=4.25%PVoffuturecashflows=1,040,105NPV=1,040,105-1,000,000/(1-.0425)=-4,281TheprojectwouldhaveapositiveNPVof40,105withoutconsideringflotationcostsOnceweconsiderthecostofissui