资本结构计算的方法.pptxVIP

;INTENDED LEARNING OUTCOMES;TOPIC OUTLINE;iii. Static Trade Off Theory iv. Other Theories v. Evidence Implications;CAPITAL STRUCTURE;SIGNIFICANCE;GEARING;IMPACT OF DEBT FINANCING;Fulthor plc is to be set up with a total capital of ￡10 million. Expected results for the company depend on trading conditions shown below: Trading Conditions Poor Normal Good EBIT (￡000) 600 1,500 2,400 ROCE 6% 15% 24% Three possible financing structures are being considered: i. Gearing 0% (Equity 10 million ￡1 shares) ii. Gearing 20% (Equity 8 million ￡1 shares, 10% Debt ￡2 million) iii. Gearing 60% (Equity 4 million ￡1 shares, 10% Debt ￡6 million);i. Gearing 0% EBIT 600 1,500 2,400 Shareholder Earnings 600 1,500 2,400 EPS (pence) 6 15 24 Return on Equity 6% 15% 24% ii. Gearing 20% EBIT 600 1,500 2,400 Debt Interest 200 200 200 Shareholder Earnings 400 1,300 2,200 EPS (pence) 5 16.25 27.5 Return on Equity 5% 16.25% 27.5%;iii. Gearing 60% EBIT 600 1,500 2,400 Debt Interest 600 600 600 Shareholder Earnings 0 900 1,800 EPS (pence) 0 22.5 45 Return on Equity 0% 22.5% 45%;Return on Equity % 45 60% gearing 42 39 36 33 30 27 20% gearing 24 0% gearing 21 18 15 12 9 6 3 0 0 2 4 6 8 10 12 14 16 18 20 22 24 ROCE%;ASSUMPTIONS;MEASURES OF COST OF CAPITAL;THE CAPITAL STRUCTURE DEBATE;MODIGLIANI-MILLER HYPOTHESIS;PROPOSITIONS 1. The total value of the firm is independent of its capital structure. 2. The cost of equity increases to exactly offset any benefits from increased use of cheaper debt. 3. The cut-off rate for investment appraisal is independent of the firm’s capital structure and therefore of the way in which the project is financed.; ke Cost of Capital ko kd Leverage (Vd/Ve) Cost of Capital under Modigliani-Miller Hypothesis ;The cost of equity increases to exactly offset any benefits from increased use of cheaper debt. The cost of equity for a geared firm is