风险,资本,成本和资本预算讲义woshishenmaa.pptxVIP

Risk, Cost of Capital, and Capital Budgeting;Key Concepts and Skills;Chapter Outline;Where Do We Stand?;;The Cost of Equity Capital;Example;Example;Using the SML;;Estimation of Beta;Stability of Beta;Using an Industry Beta;12.3 Determinants of Beta;Cyclicality of Revenues;Operating Leverage;Operating Leverage;Financial Leverage and Beta;Example;12.4 Extensions of the Basic Model;;Capital Budgeting Project Risk;Suppose the Conglomerate Company has a cost of capital, based on the CAPM, of 17%. The risk-free rate is 4%, the market risk premium is 10%, and the firm’s beta is 1.3. 17% = 4% + 1.3 × 10% This is a breakdown of the company’s investment projects:;Capital Budgeting Project Risk;The Cost of Capital with Debt;Example: International Paper;Example: International Paper;Example: International Paper;12.6 Reducing the Cost of Capital;What is Liquidity?;Liquidity, Expected Returns and the Cost of Capital;Liquidity and the Cost of Capital;Liquidity and Adverse Selection;What the Corporation Can Do;What the Corporation Can Do;Quick Quiz;1. With the information given, we can find the cost of equity using the CAPM. The cost of equity is: RE = .045 + 1.30 (.13 – .045) = .1555 or 15.55% ;3. a. The pretax cost of debt is the YTM of the company’s bonds, so: P0= $1,080 = $50(PVIFAR%,46) + $1,000(PVIFR%,46) R = 4.58% YTM = 2 × 4.58% = 9.16% b. The aftertax cost of debt is: RD= .0916(1 – .35) = .0595 or 5.95% c. The aftertax rate is more relevant because that is the actual cost to the company. ;5. Using the equation to calculate the WACC, we find: WACC = .55(.16) + .45(.09)(1 – .35) = .1143 or 11.43% ;8. a. The book value of equity is the book value per share times the number of shares, and the book value of debt is the face value of the company’s debt, so: BVE = 9.5M($5) = $47.5M BVD = $75M + 60M = $135M So, the total value of the company is: V = $47.5M + 135M = $182.5M And the book value weights of equity and debt are: E / V = $47.5/$182.5 = .2603 D / V = 1 – E/V = .7397 ;b.