课程《财务管理基础》英文课件ch02

Chapter2TheBusiness,Tax,andFinancialEnvironments©PearsonEducationLimited2004FundamentalsofFinancialManagement,12/eCreatedby:GregoryA.Kuhlemeyer,Ph.D.CarrollCollege,Waukesha,WI杰醛狐要崖冀滦嚣柒沪蕾畏鹰头臂籍溯陛忿札听篮样癸陪袋廉叉衣范冠驳精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionChapter2TheBusiness,Tax,anAfterstudyingChapter2,youshouldbeableto:DescribethefourbasicformsofbusinessorganizationintheUnitedStates--andtheadvantagesanddisadvantagesofeach.Understandhowtocalculateacorporation'staxableincomeandhowtodeterminethecorporatetaxrate-bothaverageandmarginal.Understandvariousmethodsofdepreciation.Understandwhyacquiringassetsthroughtheuseofdebtfinancingoffersataxadvantageoverbothcommonandpreferredstockfinancing.Describethepurposeandmakeupoffinancialmarkets.Demonstrateanunderstandingofhowletterratingsofthemajorratingagencieshelpyoutojudgeasecurity’sdefaultrisk.Understandwhatismeantbytheterm“termstructureofinterestrates”andrelateittoa“yieldcurve.”膊深茂析霞厩肺利絮丝睦逃羌物箩为圆皋计酒植樊陷排侄揽早啼茅共亏漏精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionAfterstudyingChapter2,youTheBusiness,Tax,andFinancialEnvironmentsTheBusinessEnvironmentTheTaxEnvironmentTheFinancialEnvironment殴谩虹汕偶究嫡网湍佣簧侗孟兜栋埃桐扔队创渠羡灸气骄痢倍歇晨砰巧耗精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusiness,Tax,andFinanciTheBusinessEnvironmentSoleProprietorshipsPartnerships(generalandlimited)CorporationsLimitedliabilitycompaniesTheU.S.hasfourbasicformsofbusinessorganization:涣钎盏系亨苫稍溪苑羽威孜谎骂傲莎颓剑涎赚哦文怯掠娜牙徘杉鲸先晰个精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentSolePTheBusinessEnvironmentOldestformofbusinessorganization.Businessincomeisaccountedforonyourpersonal

incometaxform.SoleProprietorship

--Abusinessformforwhichthereisoneowner.Thissingleownerhasunlimitedliabilityforalldebtsofthefirm.蔽哦搁计圭枷冠真谗甲募壤违殊椭局梆僵岸肩呈畴朝辩钉攫售黎映炉篡枢精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentOldestSummaryfor

SoleProprietorshipAdvantagesSimplicityLowsetupcostQuicksetupSingletaxfilingonindividualformDisadvantagesUnlimitedliabilityHardtoraiseadditionalcapitalTransferofownershipdifficulties跨闷伙惋窃忙讽冠镑陪秆云林胳伟释先懒宿戮家邯盗僻竹恫锄买穴咒慎橙精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryfor

SoleProprietorTheBusinessEnvironmentBusinessincomeisaccountedforoneachpartner’spersonal

incometaxform.Partnership--Abusinessforminwhichtwoormoreindividualsactasowners.印宏栗章碌酷喉躬爱氧巴匡钟呢嚏似令腑碴失噪万崎娶疡掏膊郎仁畜苛殊精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentBusineTypesofPartnershipsLimitedPartnership

--limitedpartnershaveliabilitylimitedtotheircapitalcontribution(investorsonly).Atleastonegeneralpartnerisrequiredandallgeneralpartnershaveunlimitedliability.GeneralPartnership

--allpartnershaveunlimitedliabilityandareliableforallobligationsofthepartnership.毗故全倍藐状鸵撼障勿钡脊狸能珠俗丹街虐冷淹谆覆拴粉拄庆删她邦瞧轰精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTypesofPartnershipsLimitedPSummaryforPartnershipAdvantagesCanbesimpleLowsetupcost,higherthansoleproprietorshipRelativelyquicksetupLimitedliabilityforlimitedpartnersDisadvantagesUnlimitedliabilityforthegeneralpartnerDifficulttoraiseadditionalcapital,buteasierthansoleproprietorshipTransferofownershipdifficulties雌炽封疏长爸梗捕橙吕须拙竣釉地瞪腹缝待油植性熄侈噪桶征咏犁急鞋认精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryforPartnershipAdvantaTheBusinessEnvironmentAnartificialentitythatcanownassetsandincurliabilities.Businessincomeisaccountedforontheincometaxformofthecorporation.Corporation--Abusinessformlegallyseparatefromitsowners.载军迅椽狞寇咨啪辗嚷饮没爵缆叔曙凭沙酞羞受甥殴贱浮拐墓生敞鳃议岭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentAnartSummaryforCorporationAdvantagesLimitedliabilityEasytransferofownershipUnlimitedlifeEasiertoraiselargequantitiesofcapitalDisadvantagesDoubletaxationMoredifficulttoestablishMoreexpensivetosetupandmaintain荚侧新秋龙硕家瞳扑多毛骄酸耻尿絮葛省奋雕榔翟魄芍较科辱汲哥赚蝴秸精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryforCorporationAdvantaTheBusinessEnvironmentBusinessincomeisaccountedforoneach“member’s”individualincometaxform.LimitedLiabilityCompanies

--Abusinessformthatprovidesitsowners(called“members”)withcorporate-stylelimitedpersonalliabilityandthefederal-taxtreatmentofapartnership.惦巴益曾浇邯株秃惨肌萌皇磐鲜绳鞘沧狸刊特鞘簿贸干板插世层淖掌滞豢精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentBusineLimitedLiabilityCompany(LLC)LimitedliabilityCentralizedmanagementUnlimitedlifeTransferofownershipwithoutotherowners’priorconsentGenerally,anLLCwillpossessonlythefirsttwoofthefollowingfourstandardcorporationcharacteristics填逼菌吁袖昆军至郝丽镇襄匿喉菇色垫冗俄拨野赠寓居茸地才匡本虞甩恃精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionLimitedLiabilityCompany(LLCSummaryforLLCAdvantagesLimitedliabilityEliminatesdoubletaxationNorestrictiononnumberortypeofownersEasiertoraiseadditionalcapitalDisadvantagesLimitedlife(generally)Transferofownershipdifficulties(generally)尘在炯飞幻茶逐形惧份顶茶介绅陨侩门屹寸防裤坚捷映们机遥兢寒贺柿鸟精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryforLLCAdvantagesDisadCorporateIncomeTaxes赘褐状沮乞顾兔零由窖等仗憋军米师杆抬烤富编俊霄惑陶潭座陶届暖移迭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCorporateIncomeTaxes赘褐状沮乞顾兔零IncomeTaxExampleLisaMillerofBasketWonders(BW)iscalculatingthe

incometaxliability,marginaltaxrate,

and

averagetaxrateforthefiscalyearendingDecember31.BW’scorporatetaxableincomeforthisfiscalyearwas$250,000.凡够拭阶甫猛兵虱磐瑚沂泊彤妥夕累湃匈盛噶弓谤姆徘蹬绕荡寸丹乓社席精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionIncomeTaxExampleLisaMillerIncomeTaxExampleMarginaltaxrate

=39%Averagetaxrate

=$80,750

/$250,000 =32.3%Incometaxliability

=$22,250+.39x($250,000-$100,000)=$22,250+$58,500 =$80,750神遮揣醚忽随连绦壤疗粒美鸡论冕涛金驾荐沪冤捣拿肌剑约寂腾控姬邱弊精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionIncomeTaxExampleMarginaltaxDepreciationGenerally,profitablefirmsprefertouseanacceleratedmethodfortaxreportingpurposes.Depreciationrepresentsthesystematicallocationofthecostofacapitalassetoveraperiodoftimeforfinancialreportingpurposes,taxpurposes,orboth.反孔笑糕迸寐痈样屯凰稳符碘恒鹊娄舱苯宙坊械忽月汰温江曝需鄙连舷愁精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionDepreciationGenerally,profitaCommonTypesofDepreciation

Straight-line(SL)

AcceleratedTypesDoubleDecliningBalance(DDB)ModifiedAcceleratedCostRecoverySystem(MACRS)丈焕秆筑虎稍逗碴篆崭涌锰位挥沪每瞪资材辗坷颜止晴窟递棚遮诊趋故潭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCommonTypesofDepreciationDepreciationExampleLisaMillerofBasketWonders(BW)iscalculatingthedepreciationonamachinewithadepreciablebasisof$100,000,

a6-yearusefullife,anda5-yearpropertyclasslife.ShecalculatestheannualdepreciationchargesusingMACRS.[Note–ignore“bonus”depreciationdiscussedin2-25]募梨回唾搞艺螟孟艘盾责霞妹诺稀谤融边疡码赵溜帜础僵逛花监沫锅残洗精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionDepreciationExampleLisaMilleMACRSExampleAssetsaredepreciatedbasedononeofeightdifferentpropertyclasses.Generally,thehalf-yearconventionisused.DepreciationinanyparticularyearisthemaximumofDDBorstraight-line.AswitchindepreciationmethodsismadefromDDBtoSLduringthelifeoftheasset.眺镇灶曙裁寺历极挂鱼匣视宦躲扔蜕味单粮囱疗慎葵赫协擞嫂寥号圃戍褂精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionMACRSExampleAssetsaredeprecMACRSExample晒缺泄漱烂耗社独池油掖线袖夕苏严东画京驼箩垂啸闲苟篓茶巳馒惊纶捡精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionMACRSExample晒缺泄漱烂耗社独池油掖线袖夕苏严东MACRSSchedule砰敢拢座牙氨秤谚栈兴磋燎硫噬梯仇靖庭压驳核逛涡进弛侗像舞检池菊淮精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionMACRSSchedule砰敢拢座牙氨秤谚栈兴磋燎硫噬梯仇JobsandGrowthTaxReliefReconciliationActof2003Increase&ExtensionofBonusDepreciation

Increasesalimitedandadditionaltemporarydepreciationdeductionof50%inthefirstyear--subjecttostipulations.Designedtoenhancecapitalinvestmentbybusinesses.汞巷想锗官篙佩束沛将脉惭命停短意罚仑滔导讼粘诗关动臂副屠椿巾蝉瞄精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionJobsandGrowthTaxReliefRecJobsandGrowthTaxReliefReconciliationActof2003Increase&ExtensionofBonusDepreciation

Example:$200,000machineunder5-yearMACRSpropertyclass.Bonus=50%of$200K=$100K.Remaining$100K($200K-$100Kbonus)at20%ratebasedonMACRSis$20K.Resultis$120K($100K+$20K)depreciationchargeinthefirstyear.Settoexpiresoon,sowillignoreinsubsequentproblems(note–ignoredinslide2-20)托滦害弗去咙竹夷彤尧婪谩画萌稻龟氨炉慑僵政鞍烷靖聋橱蔽拘巴脯齐曰精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionJobsandGrowthTaxReliefRecOtherTaxIssuesQuarterlyTaxPayments

requirecorporationstopay25%oftheirestimatedannualtaxliabilityonthe15thofApril,June,September,andDecember.AlternativeMinimumTax

isaspecialtaxwhichequals20%ofalternativeminimumtaxableincome(generallynotequaltotaxableincome).CorporationspaythemaximumofAMTorregulartaxliability.修蛛棱廷嘘橙妇貉畏妆咕脱喧当某漠冲僵现焰恭掣盔烩搞究绣毙运咨普内精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionOtherTaxIssuesQuarterlyTaxInterestDeductibilityInterestExpense

istheinterestpaidonoutstandingdebtandistaxdeductible.CashDividend

isthecashdistributionofearningstoshareholdersandisnotataxdeductibleexpense.Theafter-taxcostofdebtis: (InterestExpense)X(1-TaxRate)Thus,debtfinancinghasataxadvantage!葫较职坛抗直赶呆适蛛殉矫损仿桥愤莆咨入庭桩赵悟磺缉犀卿围躯鞋置取精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionInterestDeductibilityInterestHandlingCorporateLossesandGainsLossesaregenerallycarriedbackfirstandthenforwardstartingwiththeearliestyearwithoperatinggains.Corporationsthatsustainanetoperatinglosscancarrythatlossback(Carryback)2yearsandforward(Carryforward)20yearstooffsetoperatinggainsinthoseyears.郴儒倪或迢镶弘琼脐毙圈拆眺肄字耻砒挛赫愚绪泪鸳徐峻撇姜愧戈柏雄营精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionHandlingCorporateLossesandCorporateLossesandGainsExampleLisaMillerisexaminingtheimpactofanoperatinglossatBasketWonders(BW)in2003.Thefollowingtimelineshowsoperatingincomeandlosses.Whatimpactdoesthe2007losshaveonBW?-$500,000

$100,000

$150,000$150,0002007200620052004寻悼将掐用肃赡暂处积滨际潘和沤巡本溢瘴鹿磷畸冷撅夷苗仅谗意象穴临精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCorporateLossesandGainsExaCorporateLossesandGainsExampleThelosscanoffsetthegainineachoftheyears2005and2006.Theremaining$250,000canbecarriedforwardto2008orbeyond.Impact:Taxrefundforfederaltaxespaidin2005and2006.-$500,000

$100,000

$150,000$150,0002007200620052004-$150,000-$100,000$250,000$150,00000-$250,000南世谋疼牵潘壤表采缺歇椰郭佣素缆滇流菠坚蜀毒沮家数衅潞先梢匙晃政精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCorporateLossesandGainsExaCorporateCapitalGains/LossesOftenhistorically,capitalgainsincomehasreceivedmorefavorableU.S.taxtreatmentthanoperatingincome.Generally,thesaleofa“capitalasset”(asdefinedbytheIRS)generatesacapitalgain(assetsellsformorethanoriginalcost)orcapitalloss(assetsellsforlessthanoriginalcost).炔槛荧亭殆您沼诬擅沏息域寓挥斟辣毡吮寂烧归灰晤锚咸主盏肛凰绑汛撑精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCorporateCapitalGains/LossCorporateCapitalGains/LossesCapitallossesaredeductibleonlyagainstcapitalgains.Currently,capitalgainsaretaxedatordinaryincometaxratesforcorporations,oramaximum35%.爬辩炎椒威垄兔川谋挝挝广肢羽剧亭唆灼湘撼典辐统银靳巨临去晨湘宋狱精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCorporateCapitalGains/LossPersonalIncomeTaxesTheU.S.hasaprogressivetaxstructurewithfourtaxbracketsof10%,15%,25%,28%,33%,

and35%.Personalincometaxesaredeterminedbytaxableincome,filingstatus,andvariouscredits.Resultisthatlowincomeindividualspaynofederaltaxandothersmayfluctuatebetweenthemarginalrates.菏金距魂灾睛痪珠胡纳括迁葫酵忠霓汛式摇七手腕拐侮尽苗咨遣迅巧届衅精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionPersonalIncomeTaxesTheU.S.FinancialEnvironmentBusinessesinteractcontinuallywiththefinancialmarkets.FinancialMarkets

arecomposedofallinstitutionsandproceduresforbringingbuyersandsellersoffinancialinstrumentstogether.Thepurposeoffinancialmarketsistoefficientlyallocatesavingstoultimateusers.层俯赊愿匡晤戒唁吩代辩逝晌论连捡瘟幸竭点扯井绥循礼闺蓑揪鳖炉芳泄精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFinancialEnvironmentBusinesseFlowofFunds intheEconomyINVESTMENTSECTORFINANCIALINTERMEDIARIESSAVINGSSECTORFINANCIALBROKERSSECONDARYMARKET啮猖泳垦狼异恳挑煽钢右遏淄醚羹捻扩砷蜀龚缅亢霸孕凑捏补魁筒捌羊既精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFlowofFunds intheEconomyFlowofFunds intheEconomyFINANCIALINTERMEDIARIESSAVINGSSECTORFINANCIALBROKERSSECONDARYMARKETINVESTMENTSECTORBusinessesGovernmentHouseholdsINVESTMENTSECTOR豫烤曾戈抄钞吊邮驱哭密童梯毕扬痕咙军顿炔藉嚣斗绎贾橡螺蘸几裙渝崭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFlowofFunds intheEconomyFlowofFunds intheEconomyFINANCIALINTERMEDIARIESSAVINGSSECTORFINANCIALBROKERSSECONDARYMARKETSAVINGSSECTORHouseholdsBusinessesGovernmentINVESTMENTSECTOR犹贪碰箕敬兼鸯资洗坊逼店豹述卓慧嫌层尼计混煤匠佬寒箩呸竿践瞪鼓祝精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFlowofFunds intheEconomyFlowofFunds intheEconomyFINANCIALINTERMEDIARIESSAVINGSSECTORFINANCIALBROKERSSECONDARYMARKETFINANCIALBROKERSInvestmentBankersMortgageBankersINVESTMENTSECTOR脏战秃斋噪锥阵溜拾神淤抄阶孔膨钓兴具公锡访乡庶剖媒唯彤督琼庄用皮精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFlowofFunds intheEconomyFlowofFunds intheEconomyFINANCIALINTERMEDIARIESSAVINGSSECTORFINANCIALBROKERSSECONDARYMARKETFINANCIALINTERMEDIARIESCommercialBanksSavingsInstitutionsInsuranceCos.PensionFundsFinanceCompaniesMutualFundsINVESTMENTSECTOR扫镣拈钦擂恃欣旅冰撤揣哆鸡成蒂筹戌簇浓藻檀栓幂酶节爹豢罩蚤短水漓精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFlowofFunds intheEconomyFlowofFunds intheEconomyFINANCIALINTERMEDIARIESSAVINGSSECTORFINANCIALBROKERSSECONDARYMARKETSECONDARYMARKETSecurityExchangesOTCMarketINVESTMENTSECTOR祁抬贵漾奥孽咯愤祁骋炉莆杏碎蕴敝向呸涨疤习曾肖讽切域掺狡憾横甫闭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionFlowofFunds intheEconomyAllocationofFundsInarationalworld,thehighestexpectedreturnswillbeofferedonlybythoseeconomicunitswiththemostpromisinginvestmentopportunities.Result:Savingstendtobeallocatedtothemostefficientuses.Fundswillflowtoeconomicunitsthatarewillingtoprovidethegreatestexpectedreturn(holdingriskconstant).践匆蒲桶熊徒管书掘菲瓢孽努库独哄疵闰辙恭五采担遁莆嚼虞桩链兹丹巴精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionAllocationofFundsInarationRisk-ExpectedReturnProfileRISKEXPECTEDRETURN(%)U.S.TreasuryBills(risk-freesecurities)Prime-gradeCommercialPaperLong-termGovernmentBondsInvestment-gradeCorporateBondsMedium-gradeCorporateBondsPreferredStocksConservativeCommonStocksSpeculativeCommonStocks劲夫办雁泉娠穿涡宙颠左盐咎龄熟真特铂呀如绍剃隘崩挛门恿率封谜粳鳖精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionRisk-ExpectedReturnProfileRIWhatInfluencesSecurityExpectedReturns?Marketabilityistheabilitytosellasignificantvolumeofsecuritiesinashortperiodoftimeinthesecondarymarketwithoutsignificantpriceconcession.DefaultRisk

isthefailuretomeetthetermsofacontract.遏葱败兽雌泵甫麓廓翰荚夷篡债笑啃囚痊庇碱扬合吉脯够岛荫嫩辨科诵薛精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionWhatInfluencesSecurityExpecRatingsbyInvestmentAgenciesonDefaultRiskInvestmentgraderepresentsthetopfourcategories.Belowinvestmentgraderepresentsallothercategories.耙侠亮扼纤就幻玻款匝垣涉君辰饿稻壮码剪属春们盲洁拭膀强吊窑痔厚腆精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionRatingsbyInvestmentAgenciesWhatInfluencesExpectedSecurityReturns?Taxabilityconsiderstheexpectedtaxconsequencesofthesecurity.Maturity

isconcernedwiththelifeofthesecurity;theamountoftimebeforetheprincipalamountofasecuritybecomesdue.激莽雍绦担垒煞估汕申院踢仓曰盏裙刨此苹掀氏讨匝很宪旭郭证柬熬救区精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionWhatInfluencesExpectedSecurTermStructureofInterestRatesAyieldcurveisagraphoftherelationshipbetweenyieldsandtermtomaturityforparticularsecurities.UpwardSlopingYieldCurveDownwardSlopingYieldCurve0246810YIELD(%)051015202530(Usual)(Unusual)YEARSTOMATURITY喇常惦温榷登漂驮蓟眉胯壁骚垫和狈躁蛾婪摸姨哈姓冒蔡皑占跑次咖剩朝精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTermStructureofInterestRatWhatInfluencesExpectedSecurityReturns?Inflation

isariseintheaveragelevelofpricesofgoodsandservices.Thegreaterinflationexpectations,thenthegreatertheexpectedreturn.EmbeddedOptions

providetheopportunitytochangespecificattributesofthesecurity.肤藐做掸衔柳扭惜屈遂蔓慧挂戍讶筋京绪测丢靳凰屹川丝冕炯硕求潘徊孤精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionWhatInfluencesExpectedSecurChapter2TheBusiness,Tax,andFinancialEnvironments©PearsonEducationLimited2004FundamentalsofFinancialManagement,12/eCreatedby:GregoryA.Kuhlemeyer,Ph.D.CarrollCollege,Waukesha,WI杰醛狐要崖冀滦嚣柒沪蕾畏鹰头臂籍溯陛忿札听篮样癸陪袋廉叉衣范冠驳精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionChapter2TheBusiness,Tax,anAfterstudyingChapter2,youshouldbeableto:DescribethefourbasicformsofbusinessorganizationintheUnitedStates--andtheadvantagesanddisadvantagesofeach.Understandhowtocalculateacorporation'staxableincomeandhowtodeterminethecorporatetaxrate-bothaverageandmarginal.Understandvariousmethodsofdepreciation.Understandwhyacquiringassetsthroughtheuseofdebtfinancingoffersataxadvantageoverbothcommonandpreferredstockfinancing.Describethepurposeandmakeupoffinancialmarkets.Demonstrateanunderstandingofhowletterratingsofthemajorratingagencieshelpyoutojudgeasecurity’sdefaultrisk.Understandwhatismeantbytheterm“termstructureofinterestrates”andrelateittoa“yieldcurve.”膊深茂析霞厩肺利絮丝睦逃羌物箩为圆皋计酒植樊陷排侄揽早啼茅共亏漏精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionAfterstudyingChapter2,youTheBusiness,Tax,andFinancialEnvironmentsTheBusinessEnvironmentTheTaxEnvironmentTheFinancialEnvironment殴谩虹汕偶究嫡网湍佣簧侗孟兜栋埃桐扔队创渠羡灸气骄痢倍歇晨砰巧耗精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusiness,Tax,andFinanciTheBusinessEnvironmentSoleProprietorshipsPartnerships(generalandlimited)CorporationsLimitedliabilitycompaniesTheU.S.hasfourbasicformsofbusinessorganization:涣钎盏系亨苫稍溪苑羽威孜谎骂傲莎颓剑涎赚哦文怯掠娜牙徘杉鲸先晰个精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentSolePTheBusinessEnvironmentOldestformofbusinessorganization.Businessincomeisaccountedforonyourpersonal

incometaxform.SoleProprietorship

--Abusinessformforwhichthereisoneowner.Thissingleownerhasunlimitedliabilityforalldebtsofthefirm.蔽哦搁计圭枷冠真谗甲募壤违殊椭局梆僵岸肩呈畴朝辩钉攫售黎映炉篡枢精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentOldestSummaryfor

SoleProprietorshipAdvantagesSimplicityLowsetupcostQuicksetupSingletaxfilingonindividualformDisadvantagesUnlimitedliabilityHardtoraiseadditionalcapitalTransferofownershipdifficulties跨闷伙惋窃忙讽冠镑陪秆云林胳伟释先懒宿戮家邯盗僻竹恫锄买穴咒慎橙精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryfor

SoleProprietorTheBusinessEnvironmentBusinessincomeisaccountedforoneachpartner’spersonal

incometaxform.Partnership--Abusinessforminwhichtwoormoreindividualsactasowners.印宏栗章碌酷喉躬爱氧巴匡钟呢嚏似令腑碴失噪万崎娶疡掏膊郎仁畜苛殊精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentBusineTypesofPartnershipsLimitedPartnership

--limitedpartnershaveliabilitylimitedtotheircapitalcontribution(investorsonly).Atleastonegeneralpartnerisrequiredandallgeneralpartnershaveunlimitedliability.GeneralPartnership

--allpartnershaveunlimitedliabilityandareliableforallobligationsofthepartnership.毗故全倍藐状鸵撼障勿钡脊狸能珠俗丹街虐冷淹谆覆拴粉拄庆删她邦瞧轰精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTypesofPartnershipsLimitedPSummaryforPartnershipAdvantagesCanbesimpleLowsetupcost,higherthansoleproprietorshipRelativelyquicksetupLimitedliabilityforlimitedpartnersDisadvantagesUnlimitedliabilityforthegeneralpartnerDifficulttoraiseadditionalcapital,buteasierthansoleproprietorshipTransferofownershipdifficulties雌炽封疏长爸梗捕橙吕须拙竣釉地瞪腹缝待油植性熄侈噪桶征咏犁急鞋认精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryforPartnershipAdvantaTheBusinessEnvironmentAnartificialentitythatcanownassetsandincurliabilities.Businessincomeisaccountedforontheincometaxformofthecorporation.Corporation--Abusinessformlegallyseparatefromitsowners.载军迅椽狞寇咨啪辗嚷饮没爵缆叔曙凭沙酞羞受甥殴贱浮拐墓生敞鳃议岭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentAnartSummaryforCorporationAdvantagesLimitedliabilityEasytransferofownershipUnlimitedlifeEasiertoraiselargequantitiesofcapitalDisadvantagesDoubletaxationMoredifficulttoestablishMoreexpensivetosetupandmaintain荚侧新秋龙硕家瞳扑多毛骄酸耻尿絮葛省奋雕榔翟魄芍较科辱汲哥赚蝴秸精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryforCorporationAdvantaTheBusinessEnvironmentBusinessincomeisaccountedforoneach“member’s”individualincometaxform.LimitedLiabilityCompanies

--Abusinessformthatprovidesitsowners(called“members”)withcorporate-stylelimitedpersonalliabilityandthefederal-taxtreatmentofapartnership.惦巴益曾浇邯株秃惨肌萌皇磐鲜绳鞘沧狸刊特鞘簿贸干板插世层淖掌滞豢精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionTheBusinessEnvironmentBusineLimitedLiabilityCompany(LLC)LimitedliabilityCentralizedmanagementUnlimitedlifeTransferofownershipwithoutotherowners’priorconsentGenerally,anLLCwillpossessonlythefirsttwoofthefollowingfourstandardcorporationcharacteristics填逼菌吁袖昆军至郝丽镇襄匿喉菇色垫冗俄拨野赠寓居茸地才匡本虞甩恃精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionLimitedLiabilityCompany(LLCSummaryforLLCAdvantagesLimitedliabilityEliminatesdoubletaxationNorestrictiononnumberortypeofownersEasiertoraiseadditionalcapitalDisadvantagesLimitedlife(generally)Transferofownershipdifficulties(generally)尘在炯飞幻茶逐形惧份顶茶介绅陨侩门屹寸防裤坚捷映们机遥兢寒贺柿鸟精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionSummaryforLLCAdvantagesDisadCorporateIncomeTaxes赘褐状沮乞顾兔零由窖等仗憋军米师杆抬烤富编俊霄惑陶潭座陶届暖移迭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCorporateIncomeTaxes赘褐状沮乞顾兔零IncomeTaxExampleLisaMillerofBasketWonders(BW)iscalculatingthe

incometaxliability,marginaltaxrate,

and

averagetaxrateforthefiscalyearendingDecember31.BW’scorporatetaxableincomeforthisfiscalyearwas$250,000.凡够拭阶甫猛兵虱磐瑚沂泊彤妥夕累湃匈盛噶弓谤姆徘蹬绕荡寸丹乓社席精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionIncomeTaxExampleLisaMillerIncomeTaxExampleMarginaltaxrate

=39%Averagetaxrate

=$80,750

/$250,000 =32.3%Incometaxliability

=$22,250+.39x($250,000-$100,000)=$22,250+$58,500 =$80,750神遮揣醚忽随连绦壤疗粒美鸡论冕涛金驾荐沪冤捣拿肌剑约寂腾控姬邱弊精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionIncomeTaxExampleMarginaltaxDepreciationGenerally,profitablefirmsprefertouseanacceleratedmethodfortaxreportingpurposes.Depreciationrepresentsthesystematicallocationofthecostofacapitalassetoveraperiodoftimeforfinancialreportingpurposes,taxpurposes,orboth.反孔笑糕迸寐痈样屯凰稳符碘恒鹊娄舱苯宙坊械忽月汰温江曝需鄙连舷愁精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionDepreciationGenerally,profitaCommonTypesofDepreciation

Straight-line(SL)

AcceleratedTypesDoubleDecliningBalance(DDB)ModifiedAcceleratedCostRecoverySystem(MACRS)丈焕秆筑虎稍逗碴篆崭涌锰位挥沪每瞪资材辗坷颜止晴窟递棚遮诊趋故潭精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionCommonTypesofDepreciationDepreciationExampleLisaMillerofBasketWonders(BW)iscalculatingthedepreciationonamachinewithadepreciablebasisof$100,000,

a6-yearusefullife,anda5-yearpropertyclasslife.ShecalculatestheannualdepreciationchargesusingMACRS.[Note–ignore“bonus”depreciationdiscussedin2-25]募梨回唾搞艺螟孟艘盾责霞妹诺稀谤融边疡码赵溜帜础僵逛花监沫锅残洗精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionDepreciationExampleLisaMilleMACRSExampleAssetsaredepreciatedbasedononeofeightdifferentpropertyclasses.Generally,thehalf-yearconventionisused.DepreciationinanyparticularyearisthemaximumofDDBorstraight-line.AswitchindepreciationmethodsismadefromDDBtoSLduringthelifeoftheasset.眺镇灶曙裁寺历极挂鱼匣视宦躲扔蜕味单粮囱疗慎葵赫协擞嫂寥号圃戍褂精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionMACRSExampleAssetsaredeprecMACRSExample晒缺泄漱烂耗社独池油掖线袖夕苏严东画京驼箩垂啸闲苟篓茶巳馒惊纶捡精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionMACRSExample晒缺泄漱烂耗社独池油掖线袖夕苏严东MACRSSchedule砰敢拢座牙氨秤谚栈兴磋燎硫噬梯仇靖庭压驳核逛涡进弛侗像舞检池菊淮精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionMACRSSchedule砰敢拢座牙氨秤谚栈兴磋燎硫噬梯仇JobsandGrowthTaxReliefReconciliationActof2003Increase&ExtensionofBonusDepreciation

Increasesalimitedandadditionaltemporarydepreciationdeductionof50%inthefirstyear--subjecttostipulations.Designedtoenhancecapitalinvestmentbybusinesses.汞巷想锗官篙佩束沛将脉惭命停短意罚仑滔导讼粘诗关动臂副屠椿巾蝉瞄精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionJobsandGrowthTaxReliefRecJobsandGrowthTaxReliefReconciliationActof2003Increase&ExtensionofBonusDepreciation

Example:$200,000machineunder5-yearMACRSpropertyclass.Bonus=50%of$200K=$100K.Remaining$100K($200K-$100Kbonus)at20%ratebasedonMACRSis$20K.Resultis$120K($100K+$20K)depreciationchargeinthefirstyear.Settoexpiresoon,sowillignoreinsubsequentproblems(note–ignoredinslide2-20)托滦害弗去咙竹夷彤尧婪谩画萌稻龟氨炉慑僵政鞍烷靖聋橱蔽拘巴脯齐曰精品课程《财务管理基础》英文课件ch02VanHorne/WachowiczTenthEditionJobsandGrowthTaxReliefRecOtherTaxIssuesQuarterlyTaxPayments

requirecorporationstopay25%oftheirestimatedannualtaxliabilityonthe15thofApril,June,September,andDecember.AlternativeMinimumTax

isaspecialtaxwhichequ