Brealey Myers，公司金融原理 第七版PPT Chapter_19.pptVIP

Slides by Matthew Will Topics Covered After Tax WACC Tricks of the Trade Capital Structure and WACC Adjusted Present Value Discounting Safe, Nominal Cash Flows After Tax WACC The tax benefit from interest expense deductibility must be included in the cost of funds. This tax benefit reduces the effective cost of debt by a factor of the marginal tax rate. After Tax WACC After Tax WACC Example - Sangria Corporation The firm has a marginal tax rate of 35%. The cost of equity is 14.6% and the pretax cost of debt is 8%. Given the book and market value balance sheets, what is the tax adjusted WACC? After Tax WACC Example - Sangria Corporation - continued After Tax WACC Example - Sangria Corporation - continued After Tax WACC Example - Sangria Corporation - continued After Tax WACC Example - Sangria Corporation - continued After Tax WACC Example - Sangria Corporation - continued The company would like to invest in a perpetual crushing machine with cash flows of $2.085 million per year pre-tax. Given an initial investment of $12.5 million, what is the value of the machine? After Tax WACC Example - Sangria Corporation - continued The company would like to invest in a perpetual crushing machine with cash flows of $2.085 million per year pre-tax. Given an initial investment of $12.5 million, what is the value of the machine? After Tax WACC Example - Sangria Corporation - continued The company would like to invest in a perpetual crushing machine with cash flows of $2.085 million per year pre-tax. Given an initial investment of $12.5 million, what is the value of the machine? After Tax WACC Preferred stock and other forms of financing must be included in the formula After Tax WACC Example - Sangria Corporation - continued Calculate WACC given preferred stock is $25 mil of total equity and yields 10%. Tricks of the Trade What should be included with debt? Long-term debt? Short-term debt? Cash (netted off?) Receivables? Deferred tax? Trick