财务管理英文课件OperatingandFinancialLeverage.ppt

EBIT-EPS Chart 6 Debt 5 Indifference point 4 between debt and common stock Common 3 financing 2 1 0 0 100 200 300 400 500 600 700 EBIT ($ thousands) E a r n i n g s p e r S h a r e ( $ ) 16-31 EBIT-EPS Calculation with New Preferred Financing Preferred Stock Alternative EBIT Interest EBT Taxes (30% x EBT) EAT Preferred Dividends EACS # of Shares EPS 16-32 $500,000 0 $500,000 150,000 $350,000 90,000 $260,000 50,000 $5.20 $150,000 * 0 $150,000 45,000 $105,000 90,000 $ 15,000 50,000 $0.30 * A second analysis using $150,000 EBIT rather than the expected EBIT. EBIT-EPS Chart 6 Debt Preferred 5 4 Common 3 2 Indifference point between preferred 1 stock and common stock financing 0 0 100 200 300 400 500 600 700 EBIT ($ thousands) E a r n i n g s p e r S h a r e ( $ ) 16-33 ) $ ( e r a h S r e p s g n i n r a E What About Risk? 6 Debt 5 Lower risk . Only a small probability that EPS will 4 be less if the debt alternative is chosen. Common 3 2 1 0 0 100 200 300 400 500 600 700 EBIT ($ thousands) (for the probability distribution) Probability of Occurrence 16-34 ) $ ( e r a h S r e p s g n i n a r E What About Risk? 6 Debt 5 Higher risk . A much larger probability that EPS will 4 be less if the debt alternative is chosen. 3 Common 2 1 0 0 100 200 300 400 500 600 700 EBIT ($ thousands) (for the probability distribution) Probability of Occurrence 16-35 Degree of Financial Leverage (DFL) Degree of Financial Leverage -- The percentage change in a firms earnings per share (EPS) resulting from a 1 percent change in operating profit. Percentage change in DFL at earnings per share (EPS) EBIT of = X dollars Percentage change in operating profit (EBIT) 16-36 Computing the DFL Calculating the DFL DFL EBIT of $X EBIT I PD t 16-37 = EBIT