公司理财（英文版·第5版）课件 第31章 国际公司理财

CorporateFinanceFifthEditionChapter31InternationalCorporateFinanceCopyright©2020,2017,2014PearsonEducation,Inc.

AllRightsReservedChapterOutline31.1

InternationallyIntegratedCapitalMarkets31.2

ValuationofForeignCurrencyCashFlows31.3

ValuationandInternationalTaxation31.4

InternationallySegmentedCapitalMarkets31.5

CapitalBudgetingwithExchangeRiskLearningObjectives(1of2)Discusstheconditionnecessaryforinternationallyintegratedcapitalmarkets.Describetwomethodsthatcanbeusedtovalueforeigncurrencycashflows;usethosemethodstovaluethoseflows.CalculateforeignanddomesticW

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s,usingequation31.7,giventhreeoutofthefourinputs.LearningObjectives(2of2)Describethemajorprovisionsofthe2017TaxCutsandJobsAct.Discusstheimplicationsofthepossibilitythatcapitalmarketsareinternationallysegmented.Valueaprojectwhenithasinputsandoutputsindifferentcurrencies.31.1InternationallyIntegratedCapitalMarkets(1of7)Considerariskyforeignassetthatisexpectedtopaythecashflow,inoneperiodInanormalmarket,thepriceofthisassetinaforeignmarketis31.1InternationallyIntegratedCapitalMarkets(2of7)AU.S.investorwhowantstopurchasethisassetindollarswillhavetopayWhereSiscurrentspotexchangerateindollarsperforeigncurrency.31.1InternationallyIntegratedCapitalMarkets(3of7)AnyU.S.investorwhoactuallypurchasedthissecuritywouldhavetoconvertthefuturecashflowintodollars,sothepayofftosuchaninvestoristhedollarcashflowitproduces.31.1InternationallyIntegratedCapitalMarkets(4of7)Tovaluethiscashflow,assumethattheU.S.investorcontractstodaytoconverttheexpectedcashflowinoneperiodattheforwardrate,F,quotedasdollarsperforeigncurrencyTheU.S.investor’sexpecteddollarcashflowis31.1InternationallyIntegratedCapitalMarkets(5of7)IfisthecostofcapitalforU.S.investor,thepresentvalueofthisexpectedcashflowis31.1InternationallyIntegratedCapitalMarkets(6of7)BytheLawofOnePrice,thisvaluemustbeequaltowhattheU.S.investorpaidforthesecurity:WhichsimplifiestoThisissimplycoveredinterestparity.31.1InternationallyIntegratedCapitalMarkets(7of7)InternationallyIntegratedCapitalMarketsWhenanyinvestorcanexchangecurrenciesinanyamountatthespotorforwardratesandisfreetopurchaseorsellanysecurityinanyamountinanycountryatitscurrentmarketpricesWithinternationallyintegratedcapitalmarkets,thevalueofaninvestmentdoesnotdependonthecurrencyused.TextbookExample31.1(1of2)PresentValuesandInternationallyIntegratedCapitalMarketsProblemYouareanAmericanwhotryingtocalculatethepresentvalueofamillioncashflowthatwilloccuroneyearinthefuture.Youknowthatthespotexchangerateisandtheone-yearforwardrateisYoualsoknowthattheappropriatedollarcostofcapitalforthiscashflowisandthattheappropriateyencostofcapitalforthiscashflowisWhatisthepresentvalueofthemillioncashflowfromthestandpointofaJapaneseinvestor,andwhatisthedollarequivalentofthisamount?WhatisthepresentvalueofthemillioncashflowfromstandpointofaU.S.investorwhofirstconvertsthemillionintodollars,andthenappliesthedollardiscountrate?TextbookExample31.1(2of2)SolutionThepresentvalueoftheyencashflowisandthedollarequivalentis(NotethatweadjustedtheformulaininEquation31.2becausetheexchangerateisexpressedasyenperdollarsperyen.)ThepresentvaluefromthestandpointofaU.S.investorwhofirstconvertsthemillionintodollarsusingtheforwardrateandthenappliesthedollarcostofcapitalis(Again,wehaveadjustedtheformulainEquation31.3becausetheexchangerateisexpressedasyenperdollar).BecausetheU.S.andJapanesecapitalmarketsareinternationallyintegrated,bothmethodsproducethesameresult.AlternativeExample31.1(1of5)ProblemYouareanAmericanwhoistryingtocalculatethepresentvalueofa₤25millioncashflowthatwilloccuroneyearinthefuture.YouknowthatthespotexchangerateisS=$1.9397/₤andtheone-yearforwardrateisF=$1.9581/₤.AlternativeExample31.1(2of5)ProblemYoualsoknowthattheappropriatedollarcostofcapitalforthiscashflowis6.25%andthattheappropriatepoundcostofcapitalforthiscashflowis5.25%.Whatisthepresentvalueofthe₤25millioncashflowfromthestandpointofaBritishinvestor,andwhatisthedollarequivalentofthisamount?AlternativeExample31.1(3of5)ProblemWhatisthepresentvalueofthe₤25millioncashflowfromthestandpointofaU.S.investorwhofirstconvertsthe₤25millionintodollarsandthenappliesthedollardiscountrate?AlternativeExample31.1(4of5)SolutionFortheBritishinvestor,ThepresentvalueofthepoundcashflowisThedollarequivalentisAlternativeExample31.1(5of5)SolutionFortheU.S.investor,Thepresentvalueoftheconvertingthe₤25milliontodollarsusingtheforwardrateandthenapplyingthedollarcostofcapitalisNote:The$693differenceisaroundingerror.31.2ValuationofForeignCurrencyCashFlowsInaninternationallyintegratedcapitalmarket,twoequivalentmethodsareavailableforcalculatingtheN

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Vofaforeignproject.CalculatetheN

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Vintheforeigncountryandconvertittothelocalcurrencyatthespotrate.ConvertthecashflowsoftheforeignprojectintothelocalcurrencyandthencalculatetheN

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Vofthesecashflows.WACCValuationMethodinDomesticCurrencyConvertingthecashflowsoftheforeignprojectintothelocalcurrencyandthencalculatingtheN

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Vofthesecashflowsistheequivalentofconvertingtheexpecteddollarvalueoftheforeigncurrencycashflowsandthenproceedingtovaluetheprojectasifitwereadomesticproject.Application:Ityesi,Inc.(1of9)Ityesi,Inc.wantstoapplytheW

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CtechniquetovalueaprojectintheUnitedKingdom.Theprojectwillbecompletelyself-containedintheUnitedKingdom,suchthatallrevenuesaregeneratedandallcostsareincurredthere.Application:Ityesi,Inc.(2of9)Thetechnologyusedinthenewproductswillbeobsoleteafterfouryears.Annualsalesareexpectedtobeperyear.Manufacturingcostsandoperatingexpensesareexpectedtototalperyear,respectively.Application:Ityesi,Inc.(3of9)DevelopingtheproductwillrequireanupfrontinvestmentofincapitalequipmentthatwillbeobsoleteinfouryearsandaninitialmarketingexpenseofItyesipaysacorporatetaxrateof25%nomatterinwhichcountryitmanufacturesitsproducts.Table31.1ExpectedForeignFreeCashFlowsfromItyesi’sU.K.ProjectApplication:Ityesi,Inc.(4of9)ForwardExchangeRatesThecurrentspotexchangerate,S,isAssumetherisk-freerateondollars,is4%andtherisk-free

interestrateonpounds,Application:Ityesi,Inc.(5of9)ForwardExchangeRatesUsingthecoveredinterestparitycondition:Application:Ityesi,Inc.(6of9)FreeCashFlowConversionUsingtheseforwardexchangerates,theexpectedfreecashflowsindollarscanbecalculatedbymultiplyingtheexpectedcashflowsinpoundsbytheforwardexchangerate.Table31.2ExpectedDollarFreeCashFlowsfromItyesi’sU.K.ProjectApplication:Ityesi,Inc.(7of9)TheValueofItyesi’sForeignProjectwithW

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CWiththecashflowsoftheU.K.projectnowexpressedindollars,theforeignprojectcanbevaluedasifitwereadomesticU.S.project.Table31.3Ityesi’sCurrentMarketValueBalanceSheet($millions)andCostofCapitalWithouttheU.K.ProjectApplication:Ityesi,Inc.(8of9)TheValueofItyesi’sForeignProjectwithW

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CItyesi’sW

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Ciscalculatedasfollows:Note:Ityesi’snetdebtisthe$320millionindebtminusthe$20millionincashforanetdebtof$300million.Application:Ityesi,Inc.(9of9)TheValueofItyesi’sForeignProjectwithW

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CThepresentvalueofthefuturefreecashflowsisGiventheupfrontcostoflaunchingtheproductlineindollarsisonly$22.75million,thenetpresentvalueis$23.27million.UsingtheLawofOnePriceasaRobustnessCheck(1of3)ItyesicouldhavecomputedtheforeignN

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VbydiscountingtheforeigncashflowsattheforeigncostofcapitalandconvertingthisresulttoadomesticN

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Vusingthespotrate.DeterminingtheN

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Vrequiresknowingtheforeigncostofcapital.UsingtheLawofOnePriceasaRobustnessCheck

(2of3)TheforeigncostofcapitalmustsatisfytheLawofOnePrice:andUsingtheLawofOnePriceasaRobustnessCheck(3of3)TheforeigncostofcapitalmustsatisfytheLawofOnePrice:TheforeigncostofcapitalintermsofthedomesticcostofcapitalandinterestratesisTheForeign-DenominatedCostofCapitalTextbookExample31.2(1of2)InternationalizingtheCostofCapitalProblemUsethelawofonepricetoinferthepoundW

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CfromItyesi’sdollarW

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C.VerifythattheN

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VofItyesi’sprojectisthesamewhenitspoundfreecashflowsarediscountedatthisW

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Candconvertedatthespotrate.TextbookExample31.2(2of2)SolutionUsingEq.31.7tocomputethepoundW

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CgivesThepoundW

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Cis10.34%.WecannowuseItyesi’spoundW

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CtocalculatethepresentvalueofthepoundfreecashflowsinTable31.3:TheN

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Vinpoundsoftheinvestmentopportunityismillion.ConvertingthisamounttodollarsatthespotrategiveswhichisexactlytheN

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Vwecalculatedbefore.AlternativeExample31.2(1of2)ProblemSkyMotors,basedinAustin,TX,isconsideringopeningamanufacturingplantinMexico.Sky’sweightedaveragecostofcapitalintheUnitedStatesis12%.Thecurrentrisk-freerateis2%intheUnitedStatesand8%inMexico.Whatisthefirm’spesoW

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C?AlternativeExample31.2(2of2)SolutionUsingEquation31.7,31.3ValuationandInternationalTaxation(1of3)RepatriatedReferstotheprofitsfromaforeignprojectthatafirmbringsbacktoitshomecountry31.3ValuationandInternationalTaxation(2of3)Priortothepassageofthe2017TaxCutsandJobsAct(T

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A),theUnitedStatestaxedtheworldwideearningsofU.S.companiesatthesamerateasprofitsearnedintheUnitedStates,butwithafulltaxcreditforanyforeigntaxespaid.Thus,ifthehostcountryhadataxrateof10%,theU.S.firmwouldowethedifferencebetweentheU.S.taxrateof35%andthe10%foreigntaxrate.Thisadditional25%taxwasdeferreduntiltheforeignprofitswererepatriatedtotheUnitedStates.31.3ValuationandInternationalTaxation

(3of3)Thereweretwonegativeconsequencesofthissystem.Itencouragedcompaniestokeeptheirforeignprofitsoverseasratherthanrepatriatethem.BecauseU.S.taxrateswereamongthehighestintheworld,itencouragedcompaniestomovetheirmostvaluableassets,andeventheirlegalheadquarters,outsidetheUnitedStates.TheTCJA:ANewApproachtoInternationalTaxationInadditiontoloweringthecorporatetaxrateto21%,theT

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Aintroducedseveralnewprovisionsthatsignificantlychangedthetaxtreatmentofforeignincome.Mostimportantly,theT

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Aintroducedaparticipationexemption,whichallowsU.S.firmstoexcludetheirforeignprofitsfromtheirtaxableincome.Asaresult,firmsnolongerfaceadditionalU.S.corporatetaxesontheirforeignprofits.HarmonizingtheTaxTreatmentofExports:GILTIandFDII(1of4)G

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IGlobalIntangibleLowTaxIncomeEqualtothefirm’sforeignearningsinexcessofa“normal”returnonthefirm’stangibledepreciableforeignassets(equipment,buildings,factories)HarmonizingtheTaxTreatmentofExports:GILTIandFDII(2of4)GILTI

Thelawdefinesanappropriatenormalreturntobe10%afterforeigntaxes,whichgivenaforeigntaxrateofisequivalenttoapre-taxreturnofHarmonizingtheTaxTreatmentofExports:GILTIandFDII(3of4)F

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IForeign-DerivedIntangibleIncomeAcorporation’sU.S.pre-taxincomefromtheexportofgoodsorservicesinexcessofa10%returnonthefirm’sassociateddepreciabledomesticassets:HarmonizingtheTaxTreatmentofExports:GILTIandFDII(4of4)F

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IF

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Ireceivesaspeciallowertaxrateof13.125%(ratherthanthenormal21%rate).TheintentofthislowertaxrateistomakeitmoreattractiveforU.S.firmstoholdtheirintangibleassetsdomesticallyandexporttheirproductsandservices.Together,thesetwoprovisionscombinetocreateasimilartaxrateonintangiblesusedtogenerateforeignprofitsregardlessofwherethoseintangiblesarelocated.AvoidingBaseErosion:BEAT(1of3)B

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TBaseErosionandAnti-AbuseTaxEssentiallya10%minimumtaxonlargecorporationsthatmakesignificantpaymentstotheirforeignsubsidiariesintheformofmarkupsforgoodsandservices,rents,royalties,orotherso-calledbaseerosionpayments.Itappliestocorporationswithover$500millioninrevenueandbaseerosionpaymentsinexcessof3%oftheirtotalexpenses.AvoidingBaseErosion:BEAT(2of3)BEATTheB

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Tliabilityiscalculatedas:ThefirmmustthenpaythemaximumofB

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Tandtheordinarycorporatetax(currently21%oftaxableincome).TheB

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TisdesignedtopreventfirmsfromshieldingtoomuchoftheirincomefromU.S.taxesvialargetransferpaymentstoforeignsubsidiaries.AvoidingBaseErosion:BEAT(3of3)B

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TTogether,theseprovisionsrepresentamajorreformoftheU.S.taxtreatmentofforeignincome.Theyaredesignedto(i)makeU.S.firmsmorecompetitiveinternationallybyloweringtheiroveralltaxrate(ii)substantiallyreducetheincentivetoshiftprofitsoverseastolowertaxjurisdictions(iii)eliminatetheincentivetokeepprofitsoverseasonceearned31.4InternationallySegmentedCapitalMarketsSegmentedCapitalMarketsCapitalmarketsthatarenotinternationallyintegratedDifferentialAccesstoMarkets(1of2)Firmsmayfacedifferentialaccesstomarketsifthereisanykindofasymmetrywithrespecttoinformationaboutthem.Forexample,ItyesimaybewellknownintheUnitedStatesbutnotbeequallywellknownintheUnitedKingdom,thusincreasingtheirW

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CintheUnitedKingdom.ItyesiwouldthenviewtheforeignprojectaslessvaluableifitraisescapitalintheUnitedKingdomratherthanintheUnitedStates.DifferentialAccesstoMarkets(2of2)Differentialaccesstonationalcapitalmarketsiscommonenoughthatitprovidesthebestexplanationfortheexistenceofcurrencyswaps.CurrencySwapsAcontractinwhichpartiesagreetoexchangecouponpaymentsandafinalfacevaluepaymentthatareindifferentcurrencies.Currencyswapsallowfirmstomitigatetheirexchangerateriskexposurewhilestillmakinginvestmentsandraisingfundsinthemostattractivelocales.Macro-LevelDistortionsImportantmacroeconomicreasonsforsegmentedcapitalmarketsincludecapitalcontrolsandforeignexchangecontrolsthatcreatebarrierstointernationalcapitalflowsandthussegmentnationalmarkets.Political,legal,social,andculturalcharacteristicsthatdifferacrosscountriesmayrequirecompensationintheformofacountryriskpremium.TextbookExample31.3(1of3)RiskyGovernmentBondsProblemOnJuly27,2009,thespotruble-dollarexchangeratewasR33.7382/$.Atthe,time,theyieldonshort-termRussiangovernmentbondswasabout11%,whilethecomparableone-yearyieldonU.S.Treasurysecuritieswas0.5%Usingthecoveredinterestparityrelationship,calculatetheimpliedone-yearforwardrate.Comparethisratetotheactualforwardrate,andexplainwhythetworatesdiffer.TextbookExample31.3(2of3)SolutionUsingthecoveredinterestparityformula,theimpliedforwardrateisTheimpliedforwardrateishigherthanthecurrentspotratebecauseRussiangovernmentbondshavehigheryieldsthanU.S.governmentbonds.ThedifferencebetweentheimpliedforwardrateandtheactualforwardratelikelyreflectsthedefaultriskinRussiangovernmentbonds(theRussiangovernmentdefaultedonitsdebtasrecentlyas1998).Aholderof100,000rublesseekingatruerisk-freeinvestmentcouldconverttherublestodollars,investinU.S.Treasuries,andconverttheproceedsbacktorublesataratelockedinwithaforwardcontract.Bydoingso,theinvestorwouldearnTextbookExample31.3(3of3)foraneffectiverublerisk-freerateof9.432%.Thehigherrateof11%onRussianbondsreflectsacreditspreadoftocompensatebondholdersfordefaultrisk.AlternativeExample31.3(1of2)ProblemInMarch2007,thespotCanadiandollar(C

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$)–U.S.dollar(U

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$)exchangeratewasC

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$1.1740/US$.Atthetime,theyieldonone-yearCanadiangovernmentbondswasabout4%,whilethecomparableone-yearyieldonU.S.Treasurysecuritieswas5%.Usingthecoveredinterestparityrelationship,calculatetheimpliedone-yearforwardrate.AlternativeExample31.3(2of2)SolutionTheimpliedone-yearforwardrateisC

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$

1.1628/U

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$.ImplicationsFirmsmaybeabletobenefitfromasegmentedinternationalfinancialmarketifonecountryorcurrencyhasahigherrateofreturnthananothercountryorcurrency,whenthetworatesarecomparedinthesamecurrency.TextbookExample31.4(1of5)ValuingaForeignAcquisitioninaSegmentedMarketProblemCamachoenterprisesisaU.S.companythatisconsideringexpandingbyacquiringXtapa,Inc.,afirminmexico.TheacquisitionisexpectedtoincreaseCamacho’sfreecashflowsby21millionpesosthefirstyear:thisamountisthenexpectedtogrowatarateof8%peryear.Thepriceoftheinvestmentis525millionpesos,whichis$52.5millionatthecurrentexchangerateof10pesos/$/basedonananalysisintheMexicanmarket,Camachohasdeterminedthattheappropriateafter–taxpesoW

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Cis12%.IfCamachohasalsodeterminedthatitsafter-taxdollarW

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Cforthisexpansionis7.5%,whatisthevalueoftheMexicanacquisition?AssumethattheMexicanandU.S.marketsforrisk-freesecuritiesareintegratedandthattheyieldcurveinbothcountriesisflat.U.S.risk-freeinterestratesare6%,andMexicanrisk-freeinterestratesare9%.TextbookExample31.4(2of5)SolutionLet’sbeginbycalculatingtheN

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Voftheexpansioninpesosandconvertingtheresultintodollarsatthespotrate.Puttingthefreecashflowsonatimeline:ThenetpresentvalueofthesecashflowsatthepesoW

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Cissothepurchaseisazero-N

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Vtransaction.Presumably,CamachoiscompetingwithotherMexicancompaniesforthepurchase,andtheyhavebidupthepricetothepointthatTextbookExample31.4(3of5)WecanalsocomputetheN

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Vindollarsbyconvertingtheexpectedcashflowsintodollarsusingforwardrates.TheN-yearforwardrate(Eq.30.3inChapter30)expressedinThus,thedollarexpectedcashflowsarethepesocashflows(fromtheearliertimeline)convertedattheappropriateforwardrate(wedividebytheforwardratebecauseitisinTextbookExample31.4(4of5)Thedollarexpectedcashflowsarethereforesothedollarcashflowsgrowatabout5%peryear.TheN

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VofthesecashflowsisWhichN

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Vmoreaccuratelyrepresentsthebenefitsoftheexpansion?Theanswerdependsonthesourceofthedifference.Tocomputethedollarexpectedcashflowsbyconvertingthepesoexpectedcashflowsattheforwardrate,wemustaccepttheassumptionthatspotratesandtheprojectcashflowsareuncorrelated.Thedifferencemightsimplyreflectthatthisassumptionfailedtohold.AnotherpossibilityisthatthedifferencereflectsestimationerrorintherespectiveW

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Cestimates.TextbookExample31.4(5of5)IfCamachoisrelativelyconfidentinitsassumptionsaboutspotratesanditsW

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Cestimates,athirdpossibilityisthatMexicanandU.S.capitalmarketsarenotintegrated.Inthiscase,Camacho,becauseofitsaccesstoU.S.capitalmarkets,mighthaveacompetitiveadvantage.PerhapsothercompanieswithwhichitiscompetingforthepurchaseofXtapaareallMexicanfirmsthatdonothaveaccesstocapitalmarketsoutsideofMexico.HenceCamachocanraisecapitalatacheaperrate.Ofcourse,thisargumentalsorequiresthatotherU.S.companiesarenotcompetingforthepurchaseofXtapa.Camacho,however,mighthavespecialknowledgeofXtapa’smarketsthatotherU.S.-basedcompanieslack.ThisknowledgewouldgiveCamachoacompetitiveadvantageintheproductmarketoverotherU.S.companiesandputsitonanequalfootingintheproductmarketwithotherMexicancompanies.BecauseithasacompetitiveadvantageincapitalmarketsoverotherMexicancompanies,theN

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VofthepurchaseispositiveforCamacho,butzerofortheotherbiddersforXtapa.31.5CapitalBudgetingwithExchangeRisk(1of8)Thefinalissuethatariseswhenafirmisconsideringaforeignprojectisthatthecashflowsoftheprojectmaybeaffectedbyexchangeraterisk.Theworkingassumptionmadethusfaristhattheproject’sfreecashflowsareuncorrelatedwiththespotexchangerates.31.5CapitalBudgetingwithExchangeRisk(2of8)ReconsiderwhathappensiftheItyesiprojectintheUnitedKingdomimportssomematerialsfromtheUnitedStates.Inthiscase,theproject’spoundfreecashflowswillbecorrelatedwithexchangerates.31.5CapitalBudgetingwithExchangeRisk(3of8)Ifthevalueofthedollarappreciatesagainstthepound,thepoundcostofthesematerialswillincrease,therebyreducingthepoundfreecashflows.Ifthedollardepreciates,thenthepoundfreecashflowswillincrease.Theassumptionthatchangesinthefreecashflowsareuncorrelatedwithchangesintheexchangerateisviolated.31.5CapitalBudgetingwithExchangeRisk(4of8)Wheneveraprojecthascashflowsthatdependonthevaluesofmultiplecurrenci