[英语学习]Lecture_9_capital_structure.pptVIP

第十三周 小组介绍PROJECT的选题5分钟 第十五周 初稿，选择Presentation时间 第十六周 定稿 ， 少部分小组present，时间每组15分钟 第十七周 剩余小组做Presentation 第十八周 期末考试 Chapter Outline 9.1 The Capital-Structure : Basic concepts and issues 9.2 Financial Leverage and Firm Value: An Example 9.3 Modigliani and Miller: Proposition II (No Taxes) 9.4 Limits to the Use of Debt The Capital-Structure Question There are really two basic but important questions: Why should the stockholders care about maximizing firm value? Perhaps they should be interested in strategies that maximize shareholder value. What is the ratio of debt-to-equity that maximizes the shareholder’s value? (or optimal capital structure) As it turns out, changes in capital structure benefit the stockholders if and only if the value of the firm increases. The Pie Theory and Q1 The value of a firm is defined to be the sum of the value of the firm’s debt and the firm’s equity. V = B + S Financial Leverage Effect and Q2 Current Assets $20,000 Debt $0 Equity $20,000 Debt/Equity ratio 0.00 Interest rate n/a Shares outstanding 400 Share price $50 EPS and ROE Under Current Capital Structure Recession Expected Expansion EBIT $1,000 $2,000 $3,000 Interest 0 0 0 Net income $1,000 $2,000 $3,000 EPS $2.50 $5.00 $7.50 OROA 5% 10% 15% ROE 5% 10% 15% Current Shares Outstanding = 400 shares EPS and ROE Under Proposed Capital Structure Recession Expected Expansion EBIT $1,000 $2,000 $3,000 Interest 640 640 640 Net income $360 $1,360 $2,360 EPS $1.50 $5.67 $9.83 OROA 5% 10% 15% ROE 3% 11% 20% Proposed Shares Outstanding = 240 shares EPS and ROE Under Both Capital Structures Levered Recession Expected Expansion EBIT $1,000 $2,000 $3,000 Interest 640 640 640 Net income $360 $1,360 $2,360 EPS $1.50 $5.67 $9.83 oROA 5% 10% 15% ROE 3% 11% 20% Proposed Shares Outstanding = 240 shares Financial Leverage and EPS Modigliani-Miller Model I Assumptions Homogeneous Expectations Homogeneous Business Risk Classes Perpetual Cash Flows Perfect Capital Markets: Perfect c