公司理财最新版本.ppt

CorporateFinanceRoss Westerfield Jaffe SixthEdition ChapterOutline 3 1TheFinancialMarketEconomy3 2MakingConsumptionChoicesOverTime3 3TheCompetitiveMarket3 4TheBasicPrinciple3 5PracticingthePrinciple3 6IllustratingtheInvestmentDecision3 7CorporateInvestmentDecision Making3 8SummaryandConclusions 3 1TheFinancialMarketEconomy Individualsandinstitutionshavedifferentincomestreamsanddifferentintertemporalconsumptionpreferences Becauseofthis amarkethasarisenformoney Thepriceofmoneyistheinterestrate TheFinancialMarketEconomy Example Consideradentistwhoearns 200 000peryearandchoosestoconsume 80 000peryear Hehas 120 000insurplusmoneytoinvest Hecouldloan 30 000toeachof4collegeseniors Theyeachpromisetopayhimbackwithinterestaftertheygraduateinoneyear Dentist Student 1 Student 2 Student 3 Student 4 30 000 30 000 30 000 30 000 30 000 1 r 30 000 1 r 30 000 1 r 30 000 1 r TheFinancialMarketEconomy Example Ratherthanperformingthecreditanalysis4times hecouldloanthewhole 120 000toafinancialintermediaryinreturnforapromisetorepaythe 120 000inoneyearwithinterest Theintermediaryinturnloans 30 000toeachofthe4collegeseniors Student 1 Student 2 Student 3 Student 4 30 000 30 000 30 000 Bank 120 000 Dentist 30 000 30 000 1 r 30 000 1 r 30 000 1 r 30 000 1 r 120 000 1 r TheFinancialMarketEconomy Example Financialintermediationcantakethreeforms SizeintermediationIntheexampleabove thebanktookalargeloanfromthedentistandmadesmallloanstothestudents TermintermediationCommercialbanksfinancelong termmortgageswithshort termdeposits RiskintermediationFinancialintermediariescantailortheriskcharacteristicsofsecuritiesforborrowersandlenderswithdifferentdegreesofrisktolerance MarketClearing Thejobofbalancingthesupplyofanddemandforloanablefundsistakenbythemoneymarket Whenthequantitysuppliedequalsthequantitydemanded themarketisinequilibriumattheequilibriumprice Thepriceofmoneyistheinterestrate 3 2MakingConsumptionChoicesoverTime Anindividualcanalterhisconsumptionacrosstimeperiodsthroughborrowingandlending Wecanillustratethisbygraphingconsumptiontodayversusconsumptioninthefuture Thisgraphwillshowintertemporalconsumptionopportunities IntertemporalConsumptionOpportunitySet Apersonwith 95 000whofacesa10 interestratehasthefollowingopportunityset Onechoiceavailableistoconsume 40 000now investtheremaining 55 000 consume 60 000nextyear IntertemporalConsumptionOpportunitySet 0 20 000 40 000 60 000 80 000 100 000 120 000 0 20 000 40 000 60 000 80 000 100 000 120 000 Consumptiontoday Consumptionatt 1 Anotherchoiceavailableistoconsume 60 000now investtheremaining 35 000 consume 38 500nextyear TakingAdvantageofOurOpportunities 0 20 000 40 000 60 000 80 000 100 000 120 000 0 20 000 40 000 60 000 80 000 100 000 120 000 Consumptiontoday Consumptionatt 1 Aperson spreferenceswilltendtodecidewhereontheopportunitysettheywillchoosetobe ChangingOurOpportunities 0 20 000 40 000 60 000 80 000 100 000 120 000 0 20 000 40 000 60 000 80 000 100 000 120 000 Consumptiontoday Consumptionatt 1 Ariseininterestrateswillmakesavingmoreattractive andborrowinglessattractive Consideraninvestorwhohaschosentoconsume 40 000nowandtoconsume 60 000nextyear 3 3TheCompetitiveMarket Inacompetitivemarket Tradingiscostless InformationaboutborrowingandlendingisavailableTherearemanytraders noindividualcanmovemarketprices Therecanbeonlyoneequilibriuminterestrateinacompetitivemarket otherwisearbitrageopportunitieswouldarise 3 4TheBasicPrinciple Thebasicfinancialprincipleofinvestmentdecisionmakingisthis Aninvestmentmustbeatleastasdesirableastheopportunitiesavailableinthefinancialmarkets 3 5PracticingthePrinciple ALendingExample Consideraninvestmentopportunitythatcosts 50 000thisyearanprovidesacertaincashflowof 54 000nextyear Isthisagooddeal Itdependsontheinterestrateavailableinthefinancialmarkets Theinvestmenthasan8 return iftheinterestrateavailableelsewhereislessthanthis investhere 3 6IllustratingtheInvestmentDecision Consideraninvestorwhohasaninitialendowmentofincomeof 40 000thisyearand 55 000nextyear Supposethathefacesa10 percentinterestrateandisofferedthefollowinginvestment 3 6IllustratingtheInvestmentDecision 0 Consumptiontoday Ourinvestorbeginswiththefollowingopportunityset endowmentof 40 000today 55 000nextyearanda10 interestrate Onechoiceavailableistoconsume 15 000now investtheremaining 25 000inthefinancialmarketsat10 consume 82 500nextyear 0 99 000 Consumptionatt 1 90 000 3 6IllustratingtheInvestmentDecision 0 Consumptiontoday Abetteralternativewouldbetoinvestintheprojectinsteadofthefinancialmarkets Hecouldconsume 15 000now investtheremaining 25 000intheprojectat20 consume 85 000nextyear 0 99 000 Consumptionatt 1 90 000 3 6IllustratingtheInvestmentDecision 0 Consumptiontoday Notethatwearebetteroffinthatwecancommandmoreconsumptiontodayornextyear 0 99 000 Consumptionatt 1 101 500 101 500 15 000 1 10 85 000 92 273 15 000 85 000 1 10 90 000 92 273 NetPresentValue Wecancalculatehowmuchbetteroffintoday sdollartheinvestmentmakesusbycalculatingtheNetPresentValue 3 7CorporateInvestmentDecision Making Shareholderswillbeunitedintheirpreferenceforthefirmtoundertakepositivenetpresentvaluedecisions regardlessoftheirpersonalintertemporalconsumptionpreferences CorporateInvestmentDecision Making Consumptiontoday Consumptionatt 1 PositiveNPVprojectsshifttheshareholder sopportunitysetout whichisunambiguouslygood AllshareholdersagreeontheirpreferenceforpositiveNPVprojects whethertheyareborrowersorlenders 3 7CorporateInvestmentDecision Making Inreality shareholdersdonotvoteoneveryinvestmentdecisionfacedbyafirmandthemanagersoffirmsneeddecisionrulestooperateby AllshareholdersofafirmwillbemadebetteroffifmanagersfollowtheNPVrule undertakepositive