ch13 Capital Structure and Leverage 财务相关管理基础课件.pptVIP

CHAPTER 13Capital Structure and Leverage;Uncertainty about future operating income (EBIT), i.e., how well can we predict operating income? Note that business risk does not include financing effects.;What determines business risk?;What is operating leverage, and how does it affect a firm’s business risk?;Effect of operating leverage;Business risk vs. Financial risk;An example:Illustrating effects of financial leverage;Firm U: Unleveraged;Firm L: Leveraged;Ratio comparison between leveraged and unleveraged firms;Risk and return for leveraged and unleveraged firms;The effect of leverage on profitability and debt coverage;Conclusions;Optimal Capital Structure;Describe the sequence of events in a recapitalization.;Cost of debt at different levels of debt, after the proposed recapitalization;Why do the bond rating and cost of debt depend upon the amount borrowed?;Analyze the proposed recapitalization at various levels of debt. Determine the EPS and TIE at each level of debt.;Determining EPS and TIE at different levels of debt.(D = $250,000 and kd = 8%);Determining EPS and TIE at different levels of debt.(D = $500,000 and kd = 9%);Determining EPS and TIE at different levels of debt.(D = $750,000 and kd = 11.5%);Determining EPS and TIE at different levels of debt.(D = $1,000,000 and kd = 14%);Stock Price, with zero growth;What effect does increasing debt have on the cost of equity for the firm?;The Hamada Equation;The Hamada Equation;Calculating levered betas and costs of equity;Table for calculating levered betas and costs of equity;Finding Optimal Capital Structure;Table for calculating WACC and determining the minimum WACC ;Table for determining the stock price maximizing capital structure;What debt ratio maximizes EPS?;What is Campus Deli’s optimal capital structure?;What if there were more/less business risk than originally estimated, how would the analysis be affected?;Other factors to consider when establishing the firm’s target capital structure;How would