罗斯公司理财Chpt001ppt课件.ppt

CorporateFinanceRoss Westerfield Jaffe SixthEdition ChapterOutline 1 1WhatisCorporateFinance 1 2CorporateSecuritiesasContingentClaimsonTotalFirmValue1 3TheCorporateFirm1 4GoalsoftheCorporateFirm1 5FinancialMarkets1 6OutlineoftheText WhatisCorporateFinance CorporateFinanceaddressesthefollowingthreequestions Whatlong terminvestmentsshouldthefirmengagein Howcanthefirmraisethemoneyfortherequiredinvestments Howmuchshort termcashflowdoesacompanyneedtopayitsbills TheBalance SheetModeloftheFirm TheBalance SheetModeloftheFirm CurrentAssets FixedAssets1Tangible2Intangible Shareholders Equity CurrentLiabilities Long TermDebt Whatlong terminvestmentsshouldthefirmengagein TheCapitalBudgetingDecision TheBalance SheetModeloftheFirm Howcanthefirmraisethemoneyfortherequiredinvestments TheCapitalStructureDecision CurrentAssets FixedAssets1Tangible2Intangible Shareholders Equity CurrentLiabilities Long TermDebt TheBalance SheetModeloftheFirm Howmuchshort termcashflowdoesacompanyneedtopayitsbills TheNetWorkingCapitalInvestmentDecision NetWorkingCapital Shareholders Equity CurrentLiabilities Long TermDebt CurrentAssets FixedAssets1Tangible2Intangible CapitalStructure Thevalueofthefirmcanbethoughtofasapie Thegoalofthemanageristoincreasethesizeofthepie TheCapitalStructuredecisioncanbeviewedashowbesttosliceupathepie Ifhowyouslicethepieaffectsthesizeofthepie thenthecapitalstructuredecisionmatters 50 Debt 50 Equity HypotheticalOrganizationChart TheFinancialManager Tocreatevalue thefinancialmanagershould Trytomakesmartinvestmentdecisions Trytomakesmartfinancingdecisions Cashflowfromfirm C TheFirmandtheFinancialMarkets Taxes D Firmissuessecurities A Retainedcashflows F Investsinassets B Dividendsanddebtpayments E CurrentassetsFixedassets Short termdebtLong termdebtEquityshares Ultimately thefirmmustbeacashgeneratingactivity Thecashflowsfromthefirmmustexceedthecashflowsfromthefinancialmarkets 1 2CorporateSecuritiesasContingentClaimsonTotalFirmValue Thebasicfeatureofadebtisthatitisapromisebytheborrowingfirmtorepayafixeddollaramountofbyacertaindate Theshareholder sclaimonfirmvalueistheresidualamountthatremainsafterthedebtholdersarepaid Ifthevalueofthefirmislessthantheamountpromisedtothedebtholders theshareholdersgetnothing DebtandEquityasContingentClaims F Debtholdersarepromised F Ifthevalueofthefirmislessthan F theygetthewhateverthefirmifworth Ifthevalueofthefirmismorethan F debtholdersgetamaximumof F Ifthevalueofthefirmislessthan F shareholdersgetnothing Ifthevalueofthefirmismorethan F shareholdersgeteverythingabove F Algebraically thebondholder sclaimis Min F X Algebraically theshareholder sclaimis Max 0 X F CombinedPayoffstoDebtandEquity F Debtholdersarepromised F Ifthevalueofthefirmislessthan F theshareholder sclaimis Max 0 X F 0andthedebtholder sclaimisMin F X X Thesumoftheseis X Ifthevalueofthefirmismorethan F theshareholder sclaimis Max 0 X F X Fandthedebtholder sclaimis Min F X F Thesumoftheseis X 1 3TheCorporateFirm Thecorporateformofbusinessisthestandardmethodforsolvingtheproblemsencounteredinraisinglargeamountsofcash However businessescantakeotherforms FormsofBusinessOrganization TheSoleProprietorshipThePartnershipGeneralPartnershipLimitedPartnershipTheCorporationAdvantagesandDisadvantagesLiquidityandMarketabilityofOwnershipControlLiabilityContinuityofExistenceTaxConsiderations AComparisonofPartnershipandCorporations 1 4GoalsoftheCorporateFirm Thetraditionalansweristhatthemanagersofthecorporationareobligedtomakeeffortstomaximizeshareholderwealth TheSet of ContractsPerspective Thefirmcanbeviewedasasetofcontracts Oneofthesecontractsisbetweenshareholdersandmanagers Themanagerswillusuallyactintheshareholders interests Theshareholderscandevisecontractsthataligntheincentivesofthemanagerswiththegoalsoftheshareholders Theshareholderscanmonitorthemanagersbehavior Thiscontractingandmonitoringiscostly ManagerialGoals ManagerialgoalsmaybedifferentfromshareholdergoalsExpensiveperquisitesSurvivalIndependenceIncreasedgrowthandsizearenotnecessarilythesamethingasincreasedshareholderwealth SeparationofOwnershipandControl BoardofDirectors Management Assets Debt Equity Shareholders Debtholders DoShareholdersControlManagerialBehavior Shareholdersvotefortheboardofdirectors whointurnhirethemanagementteam Contractscanbecarefullyconstructedtobeincentivecompatible Thereisamarketformanagerialtalent thismayprovidemarketdisciplinetothemanagers theycanbereplaced Ifthemanagersfailtomaximizeshareprice theymaybereplacedinahostiletakeover 1 5FinancialMarkets PrimaryMarketWhenacorporationissuessecurities cashflowsfrominvestorstothefirm UsuallyanunderwriterisinvolvedSecondaryMarketsInvolvethesaleof used securitiesfromoneinvestortoanother Securitiesmaybeexchangetradedortradeover the counter