bf-lec6,78双内容比较多但已经帮大家梳理了一个结构一定要用视图里结

Lec FinancialLec6.DifferenttypesoffinancingandtheirDifferenttypesoffinancingandtheirFactorsconsideredbybusinessandinvestorsinlong-term---FactorsforthebusinessandtheexistingshareholderstoCostsofraisingthefinance–issueCostsofservicingthefinance(interests,LevelofObligationtomakeinterest/dividendLevelofObligationtorepaythefinanceTaxdeductibilityoffinancecosts(TaxEffectonthelevelofcontrolofthebusinessand domofexistingshareholders’action(votingrights?)---FactorsfortherofnewfinancetoLevelofreturnLevelofriskattachingtotheexpectedPotentialtoliquidatethealtaxpositionoftheThedegreeofcontrolorinfluenceoverthebusiness’sFortheinvestors:higherexpectedreturnswherehigherriskisForbusinessorshareholders:higherreturnforinvestorsrepresentshigherservicingcostforbusiness--Equity/preferenceshareFinancing:notobligatedtopaydividend,lessriskyorsafesources,butexpensive.(forinvestorthisishighlyriskyinvestmentandhigherexpected--DebtFinancing:Obligatedtopay(guaranteedbyassets),riskysources,butcheap.(forinvestor,thepaymentis‘guaranteed’,lessrisky,lowerexpectedreturn.) is ordinary*Risk&Returnfor investor（lowesttohighest）Loan-----Preferenceshare ordinaryshare*Riskfor（lowesttohighest） EquityFinancing（RetainedProfit，RightsIssues，PublicIssues）ThenatureofEquity–OrdinarySharesTheordinaryTheownersofthebusiness–controlthebusinessthroughthevotingif inliquidation:thelasttopayif issuccessful:reapsthe FactorsforbusinesstoconsideronequityIssuecosts--varyconsiderably,fromnothingto Obligationtoredeem(payprincipal)–NoneedtorepaytheTax--Dividendsarenottaxdeductible(这个究竟是什么意思),whilstloansare,makingthemmoreexpensivecomparedwithloans.Control–whennewfinanceisraisedtheexistingshareholderspowerandcontroliswatereddown,notamajorconcernfortheordinaryshareholder. FactorsfortheinvestortoconsideronequityLevelofreturn--expectedtobehigherthan‘safe’Riskofreturns–returnisnotcertainandcanbenegativeovertheshort-Easytoliquidate–sharescanbesoldonthestockexchange(secondary etax(fordividend)&capitalgainstax(forsellingtheControl–votingrights,notanimportantissueformanysmallshareholders,butiftheygrouptogethertheycanbringpressuretobearonthebusiness.Retained Is Money NO!ThispartmoneystillbelongstoshareholdersandarateofreturnisConverttheretainedProfitintoBonussharestocurrentshareholdersbasedonnumberofsharesnoeffectsonthefundsintotal(nonewfinanceflowin,numberofsharesincreases,totalmarketvaluekeepsthesame,price/sharedecreases)noeffectsontheshareholders’ FactorstoconsiderwithretainedWhatarethebenefitsofusingretainedIllusion?(bonusMarketablesizeoftheshareprice(bonusSignalofconfidenceofIsshareholderswealthaffected?–No. Issuecosts–Profitsareuncertain;retainedprofitsmaybenotsufficientforthefundneeded.Howevertheavailablefundiscertain.Control–noAtapricelowerthancurrentmarketprice,offeredtoexistingshareholdersinproportiontotheirshareholdingsEachshareattachedone1-for-3rightsissues:needs3rights(originalshares)tobuy1newshareatrightissueprice(lowprice)The takeuptheshares(atrightissue butcouldselltheright(ofbuyingtheshare)toanyoneataprice(valueoftheright).Neithertakeupnorsell:losethedifferencebetweentheoriginalmarketrateandex-rightsprice(thepriceafterrightissues)Rightissueprice:the offeredtoexistinginvestorfornewex-rightsprice:thepriceaftertherights=totalvalueof aftertherightsissue/totalsharesaftertherightsValueoftherights:shareholderscouldselltherightstothosewhohavenorighttobuytheshare,thereasonablepriceis:theex-rightsprice-therightissue（WhatpriceshouldtherightsissueoffersharesShareholderisputunderpressuretouptherightsorsellthem– isensuredasuccessfulThemarketpriceoftheshares–Theshareholders’wealth--remaintheThediscountoftherightissuepriceisnecessaryjustincasethemarketfallsandthesharepriceislowerthantheofferprice. Thiswouldcausetherightsissuetofail. FactorstoconsiderinrespectofrightsIssuecosts--Arelativelycheapway.Manyofthecostsarefixed,solargerissuesarecheaperthansmallerissues.Pricing--isn’tTheyarefairlycertain–rareto dtotakeupsharesorliquidatepartoftheirControl--DilutionneedsnotTheremaybeproblemsifthesharesarenotlistedandtheshareholdercan’taffordtotakeuptherights.Publicinitialpublicoffering(IPO)--TheprocessofsellingstocktothepublicforthefirstAdvantagesandDisadvantagesofGoingGreaterBetteraccesstoEquityholdersaremoreMustsatisfyrequirementsofpublicHowtogopublic:UnderwritersandtheUnderwriter:aninvestmentbankingfirmthatmanagestheofferinganddesignsitsstructure(leadunderwriter)Syndicate:otherunderwritersthathelpmarketandsellthe*nominalvalue：anarbitraryvalueallottedtothatunitbeforeitgoestoThenominalvaluecanchange–splitorconsolidate(reversesplit)--atwo-for-onesharesplit:thecansplitthesharesandissuetwo£0.50sharesforone£1share;--oraone-for-twoshareconsolidation:theturntwoshareswithaparvalueof10pintoonewithaparvalueof20p.PricingtheDealandManagingFirmCommitmentIPO:theunderwriterguaranteesthatitwillsellallofthestockattheofferpriceBest-EffortsBasis:theunderwriterdoesnotguaranteethatthestockwillbesold,butinsteadtriestosellthestockforthebestpossiblepriceAuctionIPO:The oritsinvestmentbankersauctionofftheshares,allowingthemarkettodeterminethepriceofthestockAuctionusingmarkettodeterminetheofferreducestheunderwriter’sroleandDisadvantages:NoIPOFourcharacteristicsofIPOspuzzlefinancialeconomists,andallarerelevanttothefinancialmanager:Onaverage,IPOsappeartobeunderpriced:ThepriceattheendoftradingonthefirstdayisoftensubstantiallyhigherthantheIPOprice.ThenumberofIPOsishighlycyclical.Whentimesaregood,themarketisfloodedwithIPOs;whentimesarebad,thenumberofIPOsdriesup.It’snotsolelydrivenbythedemandforcapitalThecostsoftheIPOareveryhigh,anditisunclearwhyfirmswillinglyincursuchhighcosts.Thelong-runperformanceofanewlypublic(threetofiveyearsfromthedateofissue)ispoor.Thatis,onaverage,athree-tofive-yearbuyandholdstrategyappearstobeabadinvestment. FactorstoconsiderwithanequityissuetotheIssuecosts--Costsarehigh.Mostcostsarefixed,soitcostsmoreforasmallUncertaintyofpublicissues–canbereducedforaPricingisControl–diluted,buttheoriginalshareholderscanpurchasefurther-Ashareinayieldingafixedrateofinterestratherthanavariable-Lessriskyforinvestor:theydohaveanominalvalueandthedividendisusuallyfixedas%ofthenominalvalue-shareholdershavethepriorityfor-Itcanbecumulativeifnotpaidinany FactorsforthebusinesstoconsideronpreferenceshareIssuecosts–similartonewequityServicingcosts–lowerthanordinaryObligationtopaydividends–no,buttheobligationtomeetthepreferencedividendbeforeanydividendtoordinaryshareholdersObligationtoredeem–no,exceptsomeareissuedasTaxdeductibility–Effectoncontrol–generally,novotingrights;votingrightsonlywhendividendsareinarrears(notpaid) FactorsforthepotentialinvestortoconsideronpreferenceLevelofreturn–significantlybelowthatofequitiesofthesameRiskinessofreturns–betweenordinarysharesandloanEaseofliquidating–possiblethroughredeem/tradeinthecapitalTaxdeductibility–taxed Degreeofcontrol–generally,novotingDebtPrivatedebt,whichisnegotiateddirectlywithabankorasmallgroupofAdvantagethatitavoidsthecostorregistrationforpublicThedisadvantage:Publicdebt,whichtradesinapublicThesecuritiesthatcompaniesissuewhenraisingdebtarecalledcorporate*PrivateDebt--BankLoansandPrivateBankTermLoan:AbankloanthatlastsforspecificSyndicateBankLoan:Asingleloanisfunded byagroupbanksratherthanjustasinglebank.Revolvinglineofcredit:Acredit commitmentforspecifictimeperioduptosomelimitwhichacanuseasneededAssetBackedlineofcredit:A maybeabletogetalargerlineofcreditoralowerinterestrateifitsecuresthelineofcreditbypledginganassetascollalPrivatecement:abondissuethatdoesnottradeonapublicmarketbutratherissoldtoasmallgroupofinvestors.Itislesscostlyto yceddebtalsoneednotconformtothesamestandardsaspublicdebt;asaconsequence,itcanbetailoredtotheparticularsituation.PublicDebt—similartoastockApublicbondissueissimilartoastockFourtypesofbondsLoanNotes:areunsecureddebtwithmaturitiestypicallyoflessthan10Debentures:areunsecureddebtwithmaturitiesof10yearsorMortgageBonds:aresecuredbyrealAssetbackedBonds:bondscanbesecuredbyanykindofLoanFixedinterestratepaidonthenominalorfacevalue,knownasthecouponFaceValue(nominalvalue):Theprincipalorredemptionvalueofthebond,theactualvalue(marketvalue)maybedifferentfromfacevalue.Oftenhasaredemptiondateandsomeareperpetual(nomaturityExample:Afive-year,8%couponbondwithannualcouponpayments.Ithasamarketprice$103per$100faceItattractsinvestorswhoseeklow-riskreturn,Institutionalinvestorslikethembecauseoftheirregularreturns.SinkingFunds:(公司的偿债BalloonPayment：期末整付；分期付款后最后一笔大金额的付款ConvertibleProvisions FactorsforthebusinesstoconsideronloannotesIssuecosts–relativelyServicingcosts–low(comparedwithordinaryObligationtopayinterest–underthelawofObligationtoredeem–Yesifitisredeemable.Butthebusinesscanalwaysbuyitsownloanstockontheopenmarketandcancelit.Tax–fullydeductibleforcorporationtaxEffectoncontrol–Novotingrightstodebtholdersbutifthebusinessdoesnotmeetitsloanstockobligationsitcanseriouslyimpedethebusiness. FactorsforthepotentialinvestortoconsideronloanThelevelofreturns--Riskinessofreturns–interestraterisk(causedbychangesinthegenerallevelofinterestrates)Easeofliquidating-- etax(significant)andcapitalDegreeofcontrol--Nocontroloverthebusinessunlessitdefaultsorthere’sanyloanLec7.如何计算各种cost;用WACC把他们起来；WACC作为discountrate的应用一些概念和整体知识Capital=debt+Capitalstructure=relativeproportionsofdebt,equity,andothersecuritiesthatafirmhasoutstandingconstituteitsUnlevered:afirmthatdoesnothavedebtoutstanding说明所有capitalequity，所以costofcapitalcostofequity，这里就出现两种用以计算costofequity的方法：CapitalAssetPricingModel(CAPM):E(ri)=rf+[E(rm)–rf]ConstantDividendGrowthModelLevered:afirmthathasdebtoutstandingcostofcapital就是所有capital类别的平均数-weightedaveragecostofcapitalLeverageratio:relativeamountofdebtonafirm’sbalancesheet(gearing现现在我们就看看如何算每个部分的cost，其实就是把一 都背来，知道每个字母是啥就OKCostofloanstock=costofdebtrD，要注意不能直接用，要把他转换成effectivecostofdebt=rD(1TC)loanstock(aftertaxcostofloanstocks算出来的keffectivecostMarketValue(MV):ThepriceoftheloanstockonthemarketK:theeffectivecostofbondfortheCn:interestpaymenttoinvestorsCn(1-T):effectiveinterestcostfortheT:thecorporatetaxFV:FacevalueoftheloanstockUseIRRtrialanderrortogetkIrredeemableloanstockskL=Cn(1-CostofPreferenceshareskp=preferreddividend/preferredstockCostof E(ri)=rf+[E(rm)–rf]βi)CDGM:(riskymethod)这个方法说穿了就是用dividends来estimatecostEquityPE0=∑[dn/(1+kE)n] StockPrice=PresentValueofallfuturedividendsPerpetuity=assumethatdividendwillremainasatpresentkE=dn/PE0(suchaspreferencestocks)GrowingPerpetuity=assumesomeconstantrateofgrowthinD1currentprice(Exdividend各个各个cost都有了，就把他 起来变成rwacc=rEE%+rpfdP%+rD(1rwacc=rEE%+rpfdP%+rLD%(loanWACC作为discountrateevaluate这个PPT说给了三个例子，大家都去看看吧，帮住理解比较CAPMandWACCasdiscountrateassumptions&感觉这个有可能处在sectionC里，好在seminarStatethedifferencesofWACCandCAPMmethodsasdiscount versusCAPMasthediscountCAPMcanbeusedtoanyelementofIfthebusinessisnottotallyequityfinanced,WACCmustbeAlthoughbothapproachesmustconsiderrisk,CAPMtendstofocusmoreclearlyonthespecificproject,whiletheestimatedWACCisinevitablycalculatedonabusiness-widebasis.TraditionalapproachmightassumetheriskofnewprojectstobesimilartotheexistingonesTherearedifficultiesinestimatingthe3elements(Beta,marketreturnandrisk-rate)inCAPM.ForWACC,thereareproblemswithestimatingtheinputstoidentifythecostsoftheindividualelements.Thistendsnottobetoomuchaproblemwithdebtfinance,butmainlywiththecostofequity.Theestimationoffuturedividendsisadifficultone.Lec8.capitalrevision后发现我们当时的分工有点问题呢，L8-9应该放在起整理起整理但既然已经如此大家就分别看完我 的整理后根据下这张PPT自己加深理解下吧,不好意开始我的部TraditionalViewonCapitalLeverage(gearing)isagoodthing–uptoacertainlevel, isestheshareholders’关关于 的解释，也就是传统理Traditionaliststhinkthatasleverage(gearing)isincreased,bothshareholdersandlendersperceiveadditionalriskandrequirehigherreturns.Thedebtischeap.这个是很客观上纯数字上而言的，见L8开始那几Atlowerlevel,investorsdonotrequireahigherreturn,theleveragewillresultsinalowerWACC.Atmoderatelevel,theincreasedrequiredreturnsfrominvestorscan’toffsetthecheapnessofdebt,theWACCwilldecrease.Athigherlevels,theinvestorsdramaticallyincreaseintherequirerateofreturnstocompensatefortherisk–WACCstartstorisesteeply.ThereisapointtogetaminimumWACC–optimallevelofgearing.Atthispoint,theshareholders’wealthis ised–marketpriceisatitspeak.Modigliani&Miller'sViewonCapital首先我们来看看MM2.22.3Sharescanbeboughtandsoldwithoutdealingcosts–unrealistic,butdoubtfulifthismakesasignificantdifference.Capitalmarketsareefficient–seemsInterestratesareequalbetweenborrowingandlending,businessesandindividuals–obviouslyinvalid.Largebusinessesinparticularcanborrowlargeamountsatverycompetitiverates,butdoesn’tinvalidateMM’sargument.ThereisnotaxationthisisinvalidandMMhadtoreconsidertheirargument.Therearenobankruptcycosts–invalid,butnotimportantinthebroadargumentifgearingcostsaremoderateasbankruptcyisunlikely.weak的，也就是说在一定量的在一定量的Debt里是成立的但多了 TwobusinessesareidenticalapartfromgearingThisisnottruebutnotnecessaryforthepropositiontobevalid.同上MM2.1版Withouttax(underperfectcapitalgivenrationalpricinginaperfectcapitalmarketsitisnotpossibleforabusinesstoincreaseditsmarketvalue(loweritsWACC)byborrowingmoney.perfectcapitalmarketisamarketinSecuritiesarefairlyNotaxconsequencesortransactionsInvestmentcashflowsareindependentoffinancingMMPropositionVL=E+D=VInaperfectcapitalmarketthetotalvalueofafirmisnotaffectedbyitschoiceofcapitalstructure.Abusiness’sWACCremainsthesamenomatterwhatmixtureofdebtandequityisusedtofinancethefirm.Shareholderscanadjusttheamountoffinancialgearingbyborrowingandlendingontheirown.Thisuseof alborrowingtoalterthedegreeoffinancialgearingiscalledhomemadegearing(leverage).CaretheamountofborrowingLessLessdebt=lessrisk=lessreturnexpectedbyinvestors这句话可以从下面那 里得到证rDEUrDEUDE DErr =unleveredcostofLessdebt=lessLessdebt=lessrisk=lessreturnexpectedbyShareholdersinleveredbusinessesexpectareturnequaltotheexpectedreturnfromtheidenticalunleveredbusiness,plusapremiumthatisdirectlyproportionaltothelevelofgearing–moredebt,highercostofcapitalofleveredequity.后来人家MM承认自己当年无知了，怎么可能没有TAX呢？改自己的理论，出现了2.2版With有Debt就要付interestexpense=>Taxable e-interestexpense=>taxpaid↓=>availabletoinvestors↑=>valueofCo.↑*Interesttaxshield=taxrate*interestpaymentdebtMMPropositionIwiththepresenceofThetotalvalueoftheleveredfirmexceedsthevalueofthefirmwithoutleverageduetothepresentvalueofthetaxsavingsfromdebt:VL=VU+PV(InterestTaxThecostofcapitalforvaryinglevelsof–theMM(after-tax)TaxTaxbenefitsfrom看着立公司只要100%debt不就无敌吗？这个是不可能滴因为以下两个假设是很弱的Nobankruptcycosts?Itcouldashigh 20–40%ofcompaniesInterestratesstaythesameregardlessofgearing–maybeatthelowerend,butthiswouldchangeasthegearingincreased.Therefore,100%debtisnotrealistic=>Tradeoff应运而（其实这个不是MM自己想出来的，但我觉得放在一起更好理解TheTradeofffirmsshouldincreasetheirleverageuntilitreaches izingVLVUVLVUPV(FinancialDistresstaxsavingsthatresultfromincreasingleveragearejustoffsetbytheincreasedprobabilityofincurringthecostsoffinancialdistress.公司通常都怕，不太敢借太多钱，就无法最大化interesttax不同产业由于他们的成本不同，所以会选择不同的负债水准=>firmswithcostsoffinancialdistresschooselowerAgencycosts:coststhataris