公司理财：原理与实践（第8版）课件 第4章 长期融资权益融资

CorporatefinanceEighthEditionChapter4Long-termfinance:equityfinanceWhatisequityfinance?NominalvalueversusmarketvalueOrdinaryshareaccountandsharepremiumaccountAuthorisedversusissuedsharecapitalRiskandthecreditorhierarchyShareholderreturnsnotguaranteedCostofequityishigherthancostofdebtorcostofpreferencesharesShareholderrightsAshareholderhastherightto:attendgeneralmeetingsofthecompany.voteonappointmentofdirectors.voteonappointment,remunerationandremovalofauditors.receiveannualaccountsofthecompanyandthereportofitsauditors.receiveashareofanydividendpaid.Ashareholderhastherightto:voteonimportantissuessuchasrepurchaseofshares,usingsharesinatakeoverbid,orachangeinauthorisedsharecapital;receiveashareofassetsremainingafterthecompanyhasbeenliquidated;participateinanewissueofsharesofcompany(thepre-emptiveright).Shareholderrights(continued)ThestockexchangeMainmarketandAIMMarketsforordinaryshares,preferenceshares,bondsanddepositaryreceiptsRegulatedbyFinancialServicesAuthority(FSA)actingasUKListingAuthority(UKLA)KeyrolesofsponsorandbrokerinnewissuesmarketNewissuemethodsPlacing:largeblocksofsharesare‘placed’withinstitutionalinvestorsCheaperthanpublicofferNarrowerspreadofpublicownershipPublicoffer:sharesofferedtopubliceither

atfixedpriceorbytenderMoreexpensivethanplacingGiveswidespreadofpublicownershipUsedforverylargeissuesIntroduction:sharesbecomelistedonstockexchangebutnofundsareraisedWhichmethodisuseddependsonissuecosts,desiredownershipspread,aimsandsizeofissuePlacingisthemostpopularnewissuemethodonboththemainmarketandtheAIMNewissuemethods(continued)ListingrequirementsMainMarketAIMminimum25%sharesinpublichandsnormally3-yeartradingrecordrequiredneedpriorshareholderapprovalforsubstantialacquisitionsanddisposalssponsorsneededforcertaintransactionsminimummarketcapitalisationnominimumshares

tobeinpublichandsnotradingrecordrequirementnopriorshareholderapprovalfor

transactionsnominatedadviserrequiredatalltimesnominimummarketcapitalisationThestockexchangeAdvantagesofbeinglisted:Raisingfinancebycomingtomarket AccesstofinanceviacapitalmarketsSharescanbeusedinacquisitionsDisadvantagesofbeinglisted:CostsofgainingandmaintaininglistingHighershareholderexpectationsIncreasedfinancialtransparencyRightsissuesPre-emptiverightmeansnewsharesofferedfirsttoexistingshareholders. Discountedpriceofrightsissueguardsagainstsharepricefallbeforeissue.Deepdiscountrightsissueispossiblebutinpracticeisrare.Purposeofrightsissueaffectssuccessinraisingcashfromshareholders.Rightsissues(continued)Underwritingbyinstitutionalinvestorsguaranteesthatcashisraised.Shareholderscansellrightsiftheywish.Rightsissuelimitedtoexistingshareholderssonotusefulforraisinglargesums.Marketefficiencysaysthereisnobesttimeforarightsissue,butcompaniesavoidrightsissuesinbearmarkets.Theoreticalex-rightsprice(TERP)Cumrightspriceissharepricegivingtherighttoparticipateinrightsissue.TERPisweightedaverageofrightsissuepriceandcumrightspriceofsharesneededtoobtain

onenewshare.Example:1for4rightsissueat£2pershare,cumrightspriceis£2.50pershare.TERP=[(2.5×4)+2]/5=£2.40.ValueofrightsDifferencebetweenthetheoreticalex-rightspriceandtherightsissueprice,dividedbythenumberofqualifyingshares.Continuingpreviousexample:TERP=£2.40Rightsissueprice=£2.00Valueofrightsperqualifyingshare =(2.40–2.00)/4=10pActualex-rightspriceTERPisonlyaguide,thoughagoodone.Actualex-rightspricedependsoninvestors’viewof:proposedusetowhichfundsaretobeput;prospectsofcompany;informationreleasedtothemarket;marketexpectations.Rightsissues

andshareholderwealthShareholderwealthnotaffectedbyrightsissueprovidedrightsaretakenuporsold.TERPisthereforeabenchmarkagainstwhichsharepricesarisingfromuseofnewfundscanbecompared.SharepricearisingfromnewfundscanbefoundbymultiplyingnewEPSbytheprice-earningsratio.Patternsofshareownership197519811997200620142016Insurancecompanies15.920.523.514.75.94.9Pensionfunds16.826.722.112.73.03.0Otherfinancialinstitutions15.310.710.717.119.321.5Institutional(total)48.057.956.344.528.229.4Industrialandcommercialcompanies3.05.11.21.82.02.2Personalsector37.528.216.512.811.912.3Overseassector5.63.624.040.053.853.9Other5.95.22.00.94.12.2Total100100100100100100ScripandotherissuesScripissuesorbonusissuesconvertcapitalreservestoordinaryshares.Sharesplitsincreasenumberofissuedsharesbyreplacingexistingshareswithnewsharesoflowernominalvalue,andsoincreasemarketabilityofshares.Scripdividendsoffernewsharesaspartialortotalalternativetoacashdividend.Scripandotherissues(continued)SharerepurchasesdecreasethenumberofissuedsharesandsocanincreaseEPS.Capitalemployeddecreasesduetocashspentonbuyingbackshares,henceROCEmaybeincreased.Sharerepurchasesmarginallyincreaselevelofgearing,butmaydecreasecostofcapitalandsoincreasecompanyvalue.PreferencesharesEquityordebt?PreferentialrighttoreceivedividendAlthoughpermanentcapital,donotnormallycarryvotingrightsLes