罗斯《公司理财》英文习题答案DOCchap015.docVIP

Chapter 15: Capital Structure: Basic Concepts 15.1 a. The value of Nadus’ stock is ($20)(5,000) = $100,000. Since Nadus is an all-equity firm, $100,000 is also the value of the firm. b. The value of any firm is the sum of the market value of its bonds and the market value of its stocks, i.e. V=B+S, For Logis, the value of the stock is not yet known, nor is the value of the firm. The market value of Logis’ bonds is $25,000. Thus, the value of Logis’ stock is S=V - $25,000. c. Costs: Nadus: 0.20 ($100,000) = $20,000 Logis: 0.20 (V - $25,000) Returns: You are entitled to 20% of the net income of each firm. Nadus: 0.20 ($350,000) = $70,000 Logis: 0.20 [$350,000-0.12($25,000)] = $69,400 d. From the standpoint of the stockholders, Logis is riskier. If you hold Logis stock, you can receive returns only after the bondholders have been paid. e. In this problem, positive signs denote negative signs denote all cash inflows and all outflows. You should expect the immediate flows to be on net negative (an outflow). The future flows should be on net positive (an inflow). Immediate flows: Borrow from the bank an amount equal to 20% of Logis’ debt $5,000 Buy 20% of Nadus’ stock -20,000 Total Immediate Flows -$15,000 Future flows: Pay the interest on the loan 0.12 ($5,000) -$600 Receive 20% of Nadus’ net income 70,000 Total Future Flows $69,400 f. Since the returns from the purchase of the Logis stock are the same as the returns in the strategy you constructed in part e, the two investments must cost the same. Cost of the strategy = Cost of Logis stock $15,000 = 0.20 (V-$25,000) Therefore, V=$100,000 Note: This is an application of MM-Proposition I, In this MM world with no taxes and no financial distress costs, the value of an levered firm will equal the value of an un-levered firm. Thus, capital structure does not matter. g. If the value of the Logis firm is $135,000 then the value of Logis stock is