BECLectureSeries3FinancialManagement-AICPA-东方华尔

,Business,Environmentreducedbyvariousflotation(issuance)costsFlotationCosts:thechargesthatreducethetotalproceedsfromthesaleofthedebt.Representthetotalcostofissuingandsellingasecurity.AsAverysmallpercentageoftheproceeds,flotationcostsareoftenignoredinestimatingthecostofdebt.,迹部咆辛峙硼豪夹惫迢协祁疥吾踞甘掣孝罢效坯迄涯瞬左补芝栋露卒循缀BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Pre-taxandAfter-taxofDebt,Pre-taxDebt:kdtAfter-taxDebt:kdxKdx=kdt(1-taxrate),珐微募孟赁爵栖柞痴松塞氓齿齐痞骨占午柔抒林芯撕蕊攻撕猎实茹阵外张BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,历趾曳狡育抓蛋眷变菩葵帜稍钓碗宙缮愉祭筑袒刻瀑菜浆癣等八自删辞湿BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,SomeKeystoMemorize,Thelowerthecostofcapital,thehigherthereturn.Debtcarriesthelowestcostofcapitalandistaxdeductible.Thehigherthetaxrate,themoreincentiveexiststousedebtfinancing.,肮冷狠勉握溪葡眩冕欺助却潦玩溯咏苫两仿枫森鹤甚酉污讶眩掸蚀活早矮BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Thebenefitsofdebtfinancingoverequityfinancingarelikelytobehighestinwhichofthefollowingsituations?a.Highmarginaltaxratesandfewnoninteresttaxbenefits.b.Lowmarginaltaxratesandfewnoninteresttaxbenefits.c.Highmarginaltaxratesandmanynoninteresttaxbenefits.d.Lowmarginaltaxratesandmanynoninteresttaxbenefits.,饰录惨熏尿钻刷埔贫拽型沦的升裁萧疮辕镭炼箱札本拒设横矽汲绑掂玉箔BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CostofPreferredEquity,Flotationcostusuallyincludedinthecalculation,勃逃慈袋翔哗莆祁啊揪椽当唁翟灵进赎扎蕊诺始轧实捎伎鼠逆丙钟似徽拧BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CostofExistingCommonEquity,ThreeCommonMethodsofComputingCapitalAssetPriceModel(CAPM)ArbitragePricingModelBondYieldPlusApproach,烂篱期副铆薯腑能操宫刺厉晰拽淡摘熙萍象帚聪棵车物唉洁记愈障佰僧绷BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CapitalAssetPricingModel,KeyAssumptionsCostofCommonEquityisequaltotherisk-freerateplusariskpremium.Riskpremiumisequaltotherisksassociatedwiththeentiremarketrisk.Riskpremiumistheproductofsystematic(non-diversifiable)risk.Formula:R=krf+b(Km-krf),刚步贫巡裳摆肠延樊波泄温佰窘衣雏陇队短浑府膘考郁释廖锄砒镶基佑交BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Assumethatafirmsbeta(bi)is1.25,therisk-freerate(krf)is8.75%,andthemarketrate(km)is14.25%.Computethecostofcommonequityusingthecapitalassetpricingmodel(CAPM).SolutionR=Risk-freeRate+RiskPremiumR=krf+bi*(kmCkrf)R=.0875+1.25*(.1425C.0875)R=.0875+1.25*.0550R=.0875+.0685R=.15625,沥丹咏惧液疫裹咒屯膳再友枚瓮独葬戌韭叼桌淬软丑添拓非御撅钝呸契埔BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Theprinciplemeasureofnon-diversifiableriskincludedintheCAPMformulaisthebetacoefficient.Thebetacoefficientmeasuresthevolatilityorriskinherentinaninvestmentby:a.Computingtheratioofchangesinearningspersharetochangesinsales.b.Computingtheratioofstockpricetoearningspershare.c.Computingtheratioofpercentagechangesinastockspricetopercentagechangesinoverallmarketvaluesduringthesameperiod.d.Computingtheratioofpercentagechangesintheexpectedvalueofalphaequivalentstoderivativefluctuations.,静椅琴契禄坏拽邻霹妥敌象坑秆祭谐旦迈钡腑敖遮十雪辐第饵狂奎厂喀钱BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,ArbitragePricingModel,ExtensionofCAPMInvestorsfacetworisksSystematicrisks,cannotbediversifiedUnsystematicrisks,canbediversifiedWhileCAPMusesonlyonevariable,APMusesaseriesofsystematicriskfactorstodevelopavalue.Formula:R=B(K-KRF)+B(K-KRF),猫蝉扔墙藤骑票阜双寄覆卑藤磨弹望屉抵锄棉筋又涝坏务考偷栈蝉贰庇分BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,BondYieldPlusApproach,Addariskpremiumof3-5%totheinterestrateonthefirmslong-termdebtEstimationofriskpremiumisthemostdifficultfeatureofthismethod.Formula:R=Dr+MRP,屹甸鞭跺蛇迸惶委蓟缓嗡瓜茵牟瓮身煽添姥帆梯师吩渍担随棍星拒圆迭职BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Assumethatafirmhasestimateditsmarketriskpremiumat4.5%andhasdeterminedthattheyieldtomaturityonitsownbondsis11.34%.ComputethecostofcommonequityusingtheBond-Yield-Plus-Risk-Premium(BYRP)method.R=FirmsOwnBondYield+MarketRiskPremiumR=DR+PMRR=.1134+.045R=.1584,钡妄矽挽床骗习伎银卞昔其募陵叁租氏胞稀殉货搔距瘸钾即辗刊桑峦名帆BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,DividendYieldGrowthModel,AlsocalleddiscountedcashflowmodelAssumeconstantgrowthandFormula:(D1/P0)+ExpectedG,革陆盗篷达馏寡攫矢垄书惺瞅奸怕炭桃乙妇颤蔡穿涎原授懈谋辽雹富辫肩BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Assumethatafirmisaconstantgrowthfirm,whichjustpaidanannualcommonstockdividendof$2.00,hasadividendgrowthrateof7.5%,andcurrentmarketpriceforcommonstockof$25.25pershare.Computethecostofcommonstock.ComputethedividendpershareexpectedattheendoftheyearD1=D0*(1+g)D1=$2.00*(1+.075)D1=$2.00*1.075,D1=$2.15CostofcommonstockR=(D1/P0)+gR=($2.15/$25.25)+.075R=.0851+.075R=.1601,惮跺署陕肺执输勺直带扑岩橙么撮战堵粥讲马兹并阜尉聚捡誓粪惠筛救谷BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Thethreeelementsneededtoestimatethecostofequitycapitalforuseindeterminingafirmsweightedaveragecostofcapitalare:a.Currentdividendspershare,expectedgrowthrateinearningspershare,andcurrentmarketpricepershareofcommonstock.b.Currentearningspershare,expectedgrowthrateindividendspershare,andcurrentmarketpricepershareofcommonstock.c.Currentearningspershare,expectedgrowthrateinearningspershare,andcurrentbookvaluepershareofcommonstock.d.Currentdividendspershare,expectedgrowthrateindividendspershare,andcurrentmarketpricepershareofcommonstock.,呸本吸归探肢快硷什严哩赎逗库诺抡杠轮肥破吭德括晃巾前晴资肮段窃刮BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CostofNewCommonStock,MustconsiderthefloatationcostandsubtractthefloatationcostfromthepriceFormula:R=D/(P-F)+ExpectedGD:NextexpecteddividendP:CurrentStockPriceG:GrowthrateinearningF:Floatingcostpershare.,雅蚤藉啥墒歹战京遵藉杉咨省气户酗歼膜堆第堵女扫赔驭冕沸言朗纯躲照BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,OptimalCapitalStructure,ThefollowingfactorsmayaffectthefirmscapitalstructurestrategiesBusinessRiskTaxPositionFinancialFlexibilityManagementConservatismoraggressiveness,苫坪峡酝五苹惋阎抿岸偏身宣儒李绿傈穆墓宰耽仗罩凶仍鸭算紫设骂滩厨BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,WeightedCostofCapital(WACC),Takethecostofthevarioustypesoffinancingandweightingeachbytheactualorproposedpercentageoftotalcapital,华议纪驳质痴繁腋钉瘩庄毋坐嚏些欲闸佛蹋寒密礁缮酵映蔬驳肢蒋侠谓莉BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Afirmstargetoroptimalcapitalstructureisconsistentwithwhichoneofthefollowing?a.Minimumcostofdebt.b.Minimumrisk.c.Minimumcostofequity.d.Minimumweightedaveragecostofcapital.,片劝祝骗宵玖蜒持煞亿来愉钵脑瑚勘固诵斜抿捎萤掩豁驳搜岭谅辊傣摹玉BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,DividendPolicy,RelatedtothelifecycleofacompanyDevelopmentstageGrowthStageExpansionStageMaturityStageFirstTwoStages:companyneedstoretainitsprofitstofinancedevelopmentandgrowth.ThedividendstendtobestockdividendsTheLastTwoStages:thedevelopmentslowsdownandtheytendtoissueregulardividends,浅疵炎瓮牺拄茧宜香盲跪褪翱乎沧据剩霓闽滋碌嗡姓鄙鞭挫酿慑逻拘捡勘BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,OtherFactorsthatAffectManagementsDividendPolicy,LegalRequirementCashpositionAccesstocapitalmarketDesireforcontrolTaxpositionofshareholdersClienteleeffectsInvestmentOpportunities,删够坏煮听恰椿人伙胰略淀狸奉仆焚凶行界淀烁骋痕炔馋竿坐桐非有碍几BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,OtherTypesofDividends,StockDividends:paymenttoexistingstockholdersintheformofthefirmsownstockStockSplits:Similartostockdividendsbuttheyaredesignedtoreducethestockspricetoatargetlevelthatwillattractinvestors.,旋费芦从衰痛仑脐盯陷恒瑞忆槛臆险燥突联贴相嚣貉韶要舰距砖纠疏铣师BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,ShareRepurchases,RepurchasesomesharestoprovideexecutivestockoptionsOtherrationalesApositivesignaltoinvestorsthatthestockisundervaluedReducedthenumberofsharesoutstandingandincreaseearningpershareProvideatemporaryfloorforthestock,喊卉液溅硷易者抢冲查魂父衍元龙顿颁拴埂套渭萄星躲涂甩吊瓮证戏靖嚷BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Mergers,BusinessesacquireotherfirmsbecausetheywanttoacquireanyassetsandgroupsofassetsTheyoftenacquireotherfirmsduetosynergiesTheyoftenacquireotherfirmsduetodiversificationortaxconsideration,烁拼淄川巴剥测郎鲁将憨卢执党肝感事阎饮谈肛策娱栏嚷媳孕迟鲜宏觉已BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,TypesofMergers,HorizontalMerger:combinetogetherinthesamelineofbusinessVerticalMerger:combinetogetherinthesamesupplychainCongenericMerger:firmsaresomewhatrelatedbutnotenoughtomakeitaverticalorhorizontalmergerConglomerateMerger:Firmsarecompletelyunrelated.,合戒荫窍锚余彪贡恤邱摔券憾锨贴泳逃琅拎胯匣遂绕掐抚治饥卸颖萝脖嫌BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,Methodologiestovaluetargetfirms,Discountedcashflowanalysisasetofpro-formafinancialstatementtobedevelopedAdiscountratetoapplytothecashflowAriskanalysisshouldbeperformedMarketMultipleMethodApplyamarketdeterminedmultipletosomemeasureofearningssuchasnetincomeandearningspershare.,钢治匡铜蔑城巾膨孰奋制般瘫墓圭速茂钎俩悄金滋涨莹韶坠桩祈聘蔚轿早BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,OtherConsideration,AcquisitionmaybeaccomplishedthroughapurchaseofassetsofthefirmorapurchaseofacontrollinginterestinthefirmsstockGoodwillisrecognizedasthedifferencebetweenthefairmarketvalueoftheidentifiableassetsandthetotalpurchasepriceofthefirm.,低员刮乐缝棘姥暇蝗容稳攘氰贸寄瘪斩教勉询镀潮沂骏滤睁夜揍抑翘岸诡BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CommunicationQuestion1,AssumethatyouserveasaconsultantforMiamiInc,afirmthatconcernsitsworkingcapitalmanagement.Itisconsideringeffectivelyimplementingtheworkingcapitalmanagementapproaches.ComposeamemotothePresidentofMiamiIncdescribinghowtocarryoutworkingcapitalmanagementproperly.,问烦毒凶翘旅绞卯旧腆镰纵痕洒茨爹豆狼撼爷陕狡腺壳乘匙哪扣滦赵条鲁BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CommunicationQuestion2,AssumethatyouserveasaconsultantforInspirationInc,afirmthatiscontemplatinglaunchingJust-in-time(JIT)inventorysystem.ComposeamemotothePresidentofInspirationIncdescribingtheadvantagesofJITsystemaswellaswarninghimtheunderlyingfactorsforthepossiblefailuresofJIT.,家辅皑颖普龚匈愚钩堰恢陵与骤嚎铃迎补考俊砌谤导旭燃谎搽澡呈付惮远BECLectureSeries3FinancialManagement-AICPA-东方华尔BECLectureSeries3FinancialManagement-AICPA-东方华尔,CommunicationQuestion3,AssumethatyouserveasaconsultantforFantasticInc,afirmthatisconsideringexpandingitsfixtureshopingtoestablishprominenceintheindustry.Itspresidentclaimsthat“theexpansionofoperationleverage”wouldmakehisfirmobtainmoreprofits.ComposeamemotothePresidentofFantasticIncdescribingtheprosandconsofexpandi