金融市场与商业财务分析报告.ppt

The Long-Term Financial Deficit (2004) Internal cash flow (retained earnings plus depreciation) 97% Long-term debt and equity 3% Sources of Cash Flow (100%) Uses of Cash Flow (100%) Capital spending 83% Net working capital plus other uses 17% Internal cash flow External cash flow Financial deficit 15.7 Recent Trends in Capital Structure Which are best: book or market values? In general, financial economists prefer market values. However, many corporate treasurers may find book values more appealing due to the volatility of market values. Whether we use book or market values, debt ratios for U.S. non-financial firms have been below 50 percent of total financing. Quick Quiz Describe the basic characteristics of the three primary sources of long-term financing : Long-Term Debt Common Stock Preferred Stock Identify the rights of shareholders and bondholders. * * That’s pretty much the only equation. * * Imagine that there are six people running for the board; three are pro-Smith, three are pro-Wesson. If Wesson spends all 1,200 votes on one of her candidates, Smith cannot defeat that candidate—but he does get to elect the other 2. * Shareholders have the right to vote for the board of directors and other important issues. Cumulative voting increases the likelihood of minority shareholders getting a seat on the board. Proxy votes are similar to absentee ballots. Proxy fights occur when minority owners are trying to get enough votes to obtain seats on the Board or affect other important issues that are coming up for the vote. Different classes of stock can have different rights. Owners may want to issue a nonvoting class of stock if they want to make sure that they maintain control of the firm. * Point out that there are a lot of features of preferred stock that are similar to debt. In fact, many new issues have sinking funds that effectively convert what was a perpetual security into an equity security with a definite maturity. However, for tax purposes, preferred