公司金融 英文版本课件 Lecture 10 Capital Structure.pdfVIP

Lecture10CapitalStructure

•Wesimplifytheanalysisbyconsideringonly

commonstockandcommondebtinthislecture.

•Thecapitalstructuredecisionisabouthowmuchto

befinancedbydebtandhowmuchtobefinancedby

equity.Thecapitalstructuredecisionweconsideristhe

decisiontorelyondebt.

1ThePieTheory

“Bettermakeitsix,Iamnotthathungryforeight”

YogiBerry,afterbeingaskedifhewantedhispizzainsix

oreightslices.

Thepieisthesumofthefinancialclaimsofthefirm,debtand

equityinthiscase.

Wedefinethevalueofthefirmtobethissum.Hencethevalue

ofthefirmV,is

V≡B+S

WhereBisthemarketvalueofthedebtandSisthe

marketvalueoftheequity.

•Ifthegoalofthemanagementofthefirmistomakethefirm

asvaluableaspossible,thenthefirmshouldpickthedebt

equityratiothatmakesthepie—thetotalvalue—asbigas

possible.

•Thislectureistryingtoanswerthefollowingtwoquestions:

(1)Whyshouldthestockholdersinthefirmcareabout

maximizingthevalueoftheentirefirm

(2)Whatistheratioofdebttoequitythatmaximizesthe

shareholders’interests

2MaximizingFirmValueversusMaximizing

StockholderInterests

•Theanswertothefirstquestionisthatchangesincapital

structurebenefitthestockholdersifandonlyifthevalueofthe

firmincreases.Conversely,thesechangeshurtthe

stockholdersifandonlyifthevalueofthefirmdecreases.

•Thefollowingexampleillustratesthatthecapitalstructurethat

maximizesthevalueofthefirmistheonethatfinancial

managersshouldchoosefortheshareholders.

Example1:

SupposethemarketvalueoftheJ.J.SprintCompanyis$1,000.

Thecompanycurrentlyhasnodebt,andeachofJ.J.Sprint’s

100sharesofstocksellsfor