Chapter 9公司理财

74CHAPTER9CapitalBudgetingandRiskAnswerstoPracticeQuestions1.a.requity=rf+(rm–rf)=0.04+(1.50.06)=0.13=13%b.0.13$10million$6million0.04$10million$4millionrVErVDrequitydebtassetsrassets=0.094=9.4%c.Thecostofcapitaldependsontheriskoftheprojectbeingevaluated.Iftheriskoftheprojectissimilartotheriskoftheotherassetsofthecompany,thentheappropriaterateofreturnisthecompanycostofcapital.Here,theappropriatediscountrateis9.4%.d.requity=rf+(rm–rf)=0.04+(1.20.06)=0.112=11.2%0.112$10million$6million0.04$10million$4millionrVErVDrequitydebtassetsrassets=0.0832=8.32%2.a.0.836n$439million$299millio1.20n$439millio$40million0.20n$439million$100millio0VCβVPβVDββcommonpreferreddebtassetsb.r=rf+(rm–rf)=0.05+(0.8360.06)=0.10016=10.016%3.Internetexercise;answerswillvary.4.Internetexercise;answerswillvary.755.[Note:Inthefirstprintingofthetext,thetableforPracticeQuestion#5incorrectlyshowsthestandarddeviationswrittenwithdecimalpoints.]a.TheR2valueforBPwas0.27,whichmeansthat27%oftotalriskcomesfrommovementsinthemarket(i.e.,marketrisk).Therefore,73%oftotalriskisuniquerisk.TheR2valueforBritishAirwayswas0.37,whichmeansthat37%oftotalriskcomesfrommovementsinthemarket(i.e.,marketrisk).Therefore,63%oftotalriskisuniquerisk.b.ThevarianceofBPis:(25)2=625MarketriskforBP:0.27×625=168.75UniqueriskforBP:0.73×625=456.25c.Thet-statisticforBAis:2.12/0.37=5.73Thisissignificantatthe1%level,sothattheconfidencelevelis99%.d.rBA=rf+BA(rm–rf)=0.05+[2.12(0.12–0.05)]=0.1984=19.84%e.rBA=rf+BA(rm–rf)=0.05+[2.12(0–0.05)]=–0.0560=–5.60%6.Internetexercise;answerswillvary.7.Thetotalmarketvalueofoutstandingdebtis£100million.Thecostofdebtcapitalis7.5percent.Forthecommonstock,theoutstandingmarketvalueis:£402million=£80million.Thecostofequitycapitalis11percent.Thus,Lorelei’sweighted-averagecostofcapitalis:0.1180million100million80million0.07580million100million100millionrassetsrassets=0.0906=9.06%8.a.rBN=rf+BN(rm–rf)=0.035+(0.530.08)=0.0774=7.74%rIND=rf+IND(rm–rf)=0.035+(0.490.08)=0.0742=7.42%b.No,wecannotbeconfidentthatBurlington’struebetaisnottheindustryaverage.ThedifferencebetweenBNandIND(0.04)islessthanonestandarderror(0.20),sowecannotrejectthehypothesisthatBN=IND.76c.Burlington’sbetamightbedifferentfromtheindustrybetaforavarietyofreasons.Forexample,Burlington’sbusinessmightbemorecyclicalthanisthecaseforthetypicalfirmintheindustry.OrBurlingtonmighthavemorefixedoperatingcosts,sothatoperatingleverageishigher.AnotherpossibilityisthatBurlingtonhasmoredebtthanistypicalfortheindustrysothatithashigherfinancialleverage.9.a.Thethreatofacoupd’étatmeansthattheexpectedcashflowislessthan$NZ900million.Thethreatcouldalsoincreasethediscountrate,butonlyifitincreasesmarketrisk.b.IfNewZealandMarineproceedswiththeconstructionofthesupplysubmarineandtheRepublicthenfailstomakethefinal$NZ900millionpayment,thenNewZealandMarinecansellthesubmarinetoanotherbuyerfor$NZ600million.Therefore,theexpectedcashflowfortheyear2paymentis:(0.20$NZ600million)+(0.80$NZ900million)=$NZ840millionAssumethatNewZealandMarine’scostsareincurredequallyinYear0,Year1andYear2,andthatthecashflowsareaboutasriskyastherestofthecompany’sbusiness.Then:PV=–400+500+(–400/1.10)+(–400+840)/1.102=+100or$NZ100million10.a.Ifyouagreetothefixedpricecontract,operatingleverageincreases.Changesinrevenueresultingreaterthanproportionatechangesinprofit.Ifallcostsarevariable,thenchangesinrevenueresultinproportionatechangesinprofit.Businessrisk,measuredbyassets,alsoincreasesasaresultofthefixedpricecontract.Iffixedcostsequalzero,then:assets=revenue.However,asPV(fixedcost)increases,assetsincreases.b.Withthefixedpricecontract:PV(assets)=PV(revenue)–PV(fixedcost)–PV(variablecost)9(1.09)(0.09)$10million)6%,10yearsfactorannuity$10million0.09$20millionPV(assets)(PV(assets)=$97,462,710Withoutthefixedpricecontract:PV(assets)=PV(revenue)–PV(variablecost)0.09$10million0.09$20millionPV(assets)=$111,111,1117711.a.Expecteddailyproduction=(0.20)+0.8[(0.4x1,000)+(0.6x5,000)]=2,720barrelsExpectedannualcashrevenues=2,720x365x$15=$14,892,000b.Thepossibilityofadryholeisadiversifiableriskandshouldnotaffectthediscountrate.Thispossibilityshouldaffectforecastedcashflows,however.SeePart(a).12.Ratioof’sCorrelationBetaBrazil6.290.53.15Egypt5.670.52.84India6.100.53.05Indonesia7.290.53.65Mexico3.920.51.96Poland3.210.51.61Thailand6.320.53.16SouthAfrica4.040.52.02ThebetasincreasecomparedtothosereportedinTable9.2becausethereturnsforthesemarketsarenowmorehighlycorrelatedwiththeU.S.market.Thus,thecontributiontooverallmarketriskbecomesgreater.13.TheinformationcouldbehelpfultoaU.S.companyconsideringinternationalcapitalinvestmentprojects.Byexaminingthebetaestimates,suchcompaniescanevaluatethecontributiontoriskofthepotentialcashflows.AGermancompanywouldnotfindthisinformationuseful.Therelevantriskdependsonthebetaofthecountryrelativetotheportfolioheldbyinvestors.Germaninvestorsdonotinvestexclusively,orevenprimarily,inU.S.companystocks.Th