公司理财-chapter-14ppt课件.ppt

Chapter14 Debtpolicy 1 Objectives AnalyzetheeffectofdebtfinanceontheriskandrequiredreturnofequityholdersAppreciatetheadvantagesanddisadvantagesofdebtfinanceCitethevariouscostsoffinancialdistressExplainwhythedebt equitymixvariesacrossfirmsandacrossindustriesSummarizethebankruptcyproceduresforfirmsthatcannotpaytheircreditors 2 Content Howborrowingaffectsvalueinatax freeeconomyCapitalstructureandcorporatetaxesCostsoffinancialdistressExplainingfinancingchoicesBankruptcyprocedures 3 Capitalstructure themixoflong termdebtandequityfinancing Thevalueofthosecashflowsdeterminesthevalueofthefirmandthereforedeterminestheaggregatevalueofallthefirm soutstandingdebtandequitysecurities Ifthefirmchangesitscapitalstructure say byusingmoredebtandlessequityfinancing overallvalueshouldnotchange 4 MMproposition Whentherearenotaxesandcapitalmarketsfunctionwell themarketvalueofacompanydoesnotdependonitscapitalstructure Inotherwords financialmanagerscannotincreasevaluebychangingthemixofsecuritiesusedtofinancethecompany 5 MM sargument Restructuring processofchangingthefirm scapitalstructurewithoutchangingitsassets 6 Howborrowingaffectsearningspershare Borrowingincreasesearningspershare EPS whenoperatingincomeisgreaterthan 100 000butreducesitwhenoperatingincomeislessthan 100 000 7 MM spropositionI Debtirrelevanceproposition Thevalueofafirmisunaffectedbyitscapitalstructure 8 Howborrowingaffectsriskandreturn 9 Debtfinancingdoesnotaffecttheoperatingriskor equivalently thebusinessriskofthefirmOperatingriskorbusinessrisk riskinfirm soperatingincomeButwithlessequityoutstanding achangeinoperatingincomehasagreaterimpactonearningspershareFinancialleverage debtfinancingtoamplifytheeffectsofchangesinoperatingincomeonthereturnstoshareholdersFinancialrisk risktoshareholdersresultingfromtheuseofdebt 10 Debtfinancedoesnotaffecttheoperatingriskbutitdoesaddfinancialrisk Withonlyhalftheequitytoabsorbthesameamountofoperatingrisk riskpersharemustdouble 11 Leverageincreasestheexpectedreturntoshareholders butitalsoincreasestherisk Thetwoeffectscancel leavingshareholdervalueunchanged 12 Debtandthecostofequity MM spropositionIstatesthatthefirm schoiceofcapitalstructuredoesnotaffectthefirm soperatingincomeorthevalueofitsassets Sorassets theexpectedreturnonthepackageofdebtandequity isunaffected However wehavejustseenthatleveragedoesincreasetheriskoftheequityandthereturnthatshareholdersdemand 13 MM spropositionII theexpectedrateofreturnonthecommonstockofaleveredfirmincreasesinproportiontothedebt equityratio D E expressedinmarketvalues Notethatrequity rassetsifthefirmhasnodebt 14 MM spropositionIIwithafixedinterestrateondebt 15 MM spropositionIIwhendebtisnotrisk free 16 Restructuring 资本结构重组MM spropositionI Debtirrelevanceproposition MM定理I 债务无关理论 Operatingriskorbusinessrisk 经营风险Financialleverage 财务杠杆Financialrisk 财务风险MM spropositionII MM定理II 17 Content Howborrowingaffectsvalueinatax freeeconomyCapitalstructureandcorporatetaxesCostsoffinancialdistressExplainingfinancingchoicesBankruptcyprocedures 18 Debtfinancinghasoneimportantadvantage theinterestthatthecompanypaysistax deductibleexpense butequityincomeissubjecttocorporatetaxInteresttaxshield taxsavingsresultingfromdeductibilityofinterestpayments Sincedebtinterestistax deductible debtholdersandequityholdersexpecttoreceiveahighercombinedincomewhenthefirmisleveraged 19 Thepresentvalue TcD isactuallythemaximumpossiblevalue 20 Howinteresttaxshieldscontributetothevalueofstockholders equity Inano taxworld MM spropositionIstatesthatthevalueofthefirmisunaffectedbycapitalstructure ButMMalsomodifiedpropositionItorecognizecorporatetaxes 21 22 Corporatetaxesandtheweighted averagecostofcapital Whenweallowforthetaxadvantageofdebt theweighted averagecostofcapitaldependsontheafter taxrateofinterest 1 Tc rdebt 23 Theimplicationsofcorporatetaxesforcapitalstructure Ifborrowingprovidesaninteresttaxshield theimpliedoptimaldebtpolicyappearstobeembarrassinglyextreme Allfirmsshouldborrowtothehilt Thismaximizesfirmvalueandminimizestheweighted averagecostofcapital Butitdoesn texplainwhyhighlyprofitablecompanieswithlargetaxbillsoftenthrivewithlittleornodebt Thereareclearlyfactorsbesidestaxtoconsider 24 Withincreasedborrowingthecostofequityrises butmoreslowlythanintheno taxcase WACCdeclinesasthefirmborrowsmore 25 Interesttaxshield 利息的税盾效应Debtfinancing 债务资金Optimaldebtpolicy 最佳负债政策 26 Content Howborrowingaffectsvalueinatax freeeconomyCapitalstructureandcorporatetaxesCostsoffinancialdistressExplainingfinancingchoicesBankruptcyprocedures 27 Financialdistressoccurswhenpromisestocreditorsarebrokenorhonoredwithdifficulty Costsoffinancialdistress costsarisingfrombankruptcyordistortedbusinessdecisionsbeforebankruptcy 28 Atmoderatedebtlevelstheprobabilityoffinancialdistressistrivial andthereforethetaxadvantagesofdebtdominate Butatsomepointadditionalborrowingcausestheprobabilityoffinancialdistresstoincreaserapidlyandthepotentialcostsofdistressbegintotakeasubstantialbiteoutoffirmvalue Thetheoreticaloptimumisreachedwhenthepresentvalueoftaxsavingsfromfurtherborrowingisjustoffsetbyincreasesinthepresentvalueofcostsofdistress 29 Trade offtheory managerswilltrytoincreasedebtlevelstothepointwherethevalueofadditionalinteresttaxshieldsisexactlyoffsetbytheadditionalcostsoffinancialdistress 30 Bankruptcycosts Directcostsofbankruptcy thatislegalandadministrativecostsIndirectcostsofbankruptcyreflectthedifficultiesofrunningacompanywhileitisgoingthroughbankruptcy Chapter11 31 Financialdistresswithoutbankruptcy Financialdistressiscostlywhenconflictsgetinthewayofrunningthebusiness Stockholdersaretemptedtoforsaketheusualobjectiveofmaximizingtheoverallmarketvalueofthefirmandtopursuenarrowerself interestinstead Theyaretemptedtoplaygamesattheexpenseoftheircreditors Thesegamesaddtothecostsoffinancialdistress Iftheprobabilityofdefaultishigh managersandstockholderswillbetemptedtotakeonexcessivelyriskyprojects Atthesametime stockholdersmayrefusetocontributemoreequitycapitalevenifthefirmhassafe positive NPVopportunities Stockholderswouldrathertakemoneyoutofthefirmthanputnewmoneyin 32 Costsofdistressvarywithtypesofasset Someassets likegoodcommercialrealestate canpassthroughbankruptcyandreorganizationlargelyunscathed thevaluesofotherassetsarelikelytobeconsiderablydiminished Thelossesaregreatestforintangibleassetsthatarelinkedtothecontinuingprosperityofthefirm Donotthinkonlyaboutwhetherborrowingislikelytobringtrouble Thinkalsoofthevaluethatmaybelostiftroublecomes 33 Financialdistress 财务困境Trade offtheory 权衡理论Bankruptcycosts 破产成本Chapter11 美国破产法第十一章Realestate 房地产 34 Content Howborrowingaffectsvalueinatax freeeconomyCapitalstructureandcorporatetaxesCostsoffinancialdistressExplainingfinancingchoicesBankruptcyprocedures 35 Thetrade offtheory Financialmanagersoftenthinkofthefirm sdebt equitydecisionasatrade offbetweeninteresttaxshieldsandthecostsoffinancialdistress Thistrade offtheorypredictsthattargetdebtratioswillvaryfromfirmtofirm Companieswithsafe tangibleassetsandplentyoftaxableincometoshieldoughttohavehightargetratios Unprofitablecompanieswithrisky intangibleassetsoughttorelyprimarilyonequityfinancing 36 Apeckingordertheory Firmspreferinternalfinance sincethesefundsareraisedwithoutsendinganyadversesignalsthatmaylowerthestockprice Ifexternalfinanceisrequired firmsissuedebtfirstandissueequityonlyasalastresort Thispeckingorderarisesbecauseanissueofdebtislesslikelythananequityissuetobeinterpretedbyinvestorsasabadomen Nocleartargetdebt equitymix 37 Thepeckingorderexplainswhythemostprofitablefirmsgenerallyborrowless itisnotbecausetheyhavelowtargetdebtratiosbutbecausetheydon tneedoutsidemoney Lessprofitablefirmsissuedebtbecausetheydonothavesufficientinternalfundsfortheircapitalinvestmentprogramandbecausedebtisfirstinthepeckingorderforexternalfinance Thepeckingordertheorydoesnotdenythattaxesandfinancialdistresscanbeimportantfactorsinthechoiceofcapitalstructure However thetheorysaysthatthesefactorsarelessimportantthanmanagers preferenceforinternaloverexternalfundsandfordebtfinancingovernewissuesofcommonstock 38 Thetwofacesoffinancialslack Financialslack readyaccesstocashordebtfinancingFinancialslackisvaluable youwanttomakesureyourfirmhassufficientfinancialslacksothatfinancingisquicklyavailableforgoodinvestments Ontheotherhand toomuchoffinancialslackmayencouragemanagerstotakeiteasy expandtheirperks orempire buildwithcashthatshouldbepaidbacktostockholders 39 Taxableincom