风险资本成本和资本预算讲义--woshishenmaa.pptVIP

Risk, Cost of Capital, and Capital Budgeting第一页，共五十页。 Key Concepts and SkillsKnow how to determine a firm’s cost of equity capitalUnderstand the impact of beta in determining the firm’s cost of equity capitalKnow how to determine the firm’s overall cost of capitalUnderstand how the liquidity of a firm’s stock affects its cost of capital第二页，共五十页。 Chapter Outline12.1 The Cost of Equity Capital12.2 Estimation of Beta12.3 Determinants of Beta12.4 Extensions of the Basic Model12.5 Estimating Eastman Chemical’s Cost of Capital12.6 Reducing the Cost of Capital第三页，共五十页。 Where Do We Stand?Earlier chapters on capital budgeting focused on the appropriate size and timing of cash flows.This chapter discusses the appropriate discount rate when cash flows are risky.第四页，共五十页。 Invest in project12.1 The Cost of Equity CapitalFirm withexcess cashShareholder’s Terminal ValuePay cash dividendShareholder invests in financial assetBecause stockholders can reinvest the dividend in risky financial assets, the expected return on a capital-budgeting project should be at least as great as the expected return on a financial asset of comparable risk.A firm with excess cash can either pay a dividend or make a capital investment第五页，共五十页。 The Cost of Equity CapitalFrom the firm’s perspective, the expected return is the Cost of Equity Capital:To estimate a firm’s cost of equity capital, we need to know three things:The risk-free rate, RFThe market risk premium,The company beta,第六页，共五十页。 ExampleSuppose the stock of Stansfield Enterprises, a publisher of PowerPoint presentations, has a beta of 2.5. The firm is 100% equity financed. Assume a risk-free rate of 5% and a market risk premium of 10%.What is the appropriate discount rate for an expansion of this firm?第七页，共五十页。 Example Suppose Stansfield Enterprises is evaluating the following independent projects. Each costs $100 and lasts one year.ProjectProject bProject’s Estimated Cash Flows Next YearIRRNPV at 30%A2.5$15050%$15.38B2.5$13030%$0C2.5$110