CH14CapitalStructureandLeverage(财务管理,英文版)

14-1Copyright©2001byHarcourt,Inc.Allrightsreserved.CHAPTER14CapitalStructureandLeverageBusinessvs.financialriskOptimalcapitalstructureOperatingleverageCapitalstructuretheory14-2Copyright©2001byHarcourt,Inc.Allrightsreserved.Uncertaintyaboutfutureoperatingincome(EBIT),i.e.,howwellcanwepredictoperatingincome?Notethatbusinessriskdoesnotincludefinancingeffects.Whatisbusinessrisk?ProbabilityEBITE(EBIT)0LowriskHighrisk14-3Copyright©2001byHarcourt,Inc.Allrightsreserved.Businessriskisaffectedprimarilyby:Uncertaintyaboutdemand(sales).Uncertaintyaboutoutputprices.Uncertaintyaboutcosts.Product,othertypesofliability.Operatingleverage.14-4Copyright©2001byHarcourt,Inc.Allrightsreserved.Whatisoperatingleverage,andhowdoesitaffectafirm’sbusinessrisk?Operatingleverageistheuseoffixedcostsratherthanvariablecosts.Ifmostcostsarefixed,hencedonotdeclinewhendemandfalls,thenthefirmhashighoperatingleverage.14-5Copyright©2001byHarcourt,Inc.Allrightsreserved.Moreoperatingleverageleadstomorebusinessrisk,forthenasmallsalesdeclinecausesabigprofitdecline.Whathappensifvariablecostschange?Sales$Rev.TCFCQBESales$Rev.TCFCQBE}Profit14-6Copyright©2001byHarcourt,Inc.Allrightsreserved.ProbabilityEBITLLowoperatingleverageHighoperatingleverageTypicalsituation:CanuseoperatingleveragetogethigherE(EBIT),butriskincreases.EBITH14-7Copyright©2001byHarcourt,Inc.Allrightsreserved.Whatisfinancialleverage?Financialrisk?Financialleverageistheuseofdebtandpreferredstock.Financialriskistheadditionalriskconcentratedoncommonstockholdersasaresultoffinancialleverage.14-8Copyright©2001byHarcourt,Inc.Allrightsreserved.BusinessRiskvs.FinancialRiskBusinessriskdependsonbusinessfactorssuchascompetition,productliability,andoperatingleverage.Financialriskdependsonlyonthetypesofsecuritiesissued:Moredebt,morefinancialrisk.Concentratesbusinessriskonstockholders.14-9Copyright©2001byHarcourt,Inc.Allrightsreserved.FirmUFirmLNodebt$10,000of12%debt$20,000inassets$20,000inassets40%taxrate40%taxrateConsider2HypotheticalFirmsBothfirmshavesameoperatingleverage,businessrisk,andprobabilitydistributionofEBIT.Differonlywithrespecttouseofdebt(capitalstructure).14-10Copyright©2001byHarcourt,Inc.Allrightsreserved.FirmU:UnleveragedProb.0.250.500.25EBIT$2,000$3,000$4,000Interest000EBT$2,000$3,000$4,000Taxes(40%)8001,2001,600NI$1,200$1,800$2,400EconomyBadAvg.Good14-11Copyright©2001byHarcourt,Inc.Allrightsreserved.FirmL:LeveragedProb.*0.250.500.25EBIT*$2,000$3,000$4,000Interest1,2001,2001,200EBT$800$1,800$2,800Taxes(40%)3207201,120NI$480$1,080$1,680*SameasforFirmU.EconomyBadAvg.Good14-12Copyright©2001byHarcourt,Inc.Allrightsreserved.FirmUBadAvg.GoodBEP*10.0%15.0%20.0%ROE6.0%9.0%12.0%TIEFirmLBadAvg.GoodBEP*10.0%15.0%20.0%ROE4.8%10.8%16.8%TIE1.67x2.5x3.3x*BEPsameforFirmsUandL.88814-13Copyright©2001byHarcourt,Inc.Allrightsreserved.ExpectedValues:E(BEP)15.0%15.0%E(ROE)9.0%10.8%E(TIE)2.5xRiskMeasures:sROE2.12%4.24%CVROE0.240.39UL814-14Copyright©2001byHarcourt,Inc.Allrightsreserved.ForleveragetoraiseexpectedROE,musthaveBEPkd.Why?IfkdBEP,thentheinterestexpensewillbehigherthantheoperatingincomeproducedbydebt-financedassets,soleveragewilldepressincome.14-15Copyright©2001byHarcourt,Inc.Allrightsreserved.ConclusionsBasicearningpower=BEP=EBIT/Totalassetsisunaffectedbyfinancialleverage.LhashigherexpectedROEbecauseBEPkd.LhasmuchwiderROE(andEPS)swingsbecauseoffixedinterestcharges.Itshigherexpectedreturnisaccompaniedbyhigherrisk.14-16Copyright©2001byHarcourt,Inc.Allrightsreserved.Ifdebtincreases,TIEfalls.EBITisconstant(unaffectedbyuseofdebt),andsinceI=kdD,asDincreases,TIEmustfall.TIE=EBITI14-17Copyright©2001byHarcourt,Inc.Allrightsreserved.OptimalCapitalStructureThatcapitalstructure(mixofdebt,preferred,andcommonequity)atwhichP0ismaximized.TradesoffhigherE(ROE)andEPSagainsthigherrisk.Thetax-relatedbenefitsofleverageareexactlyoffsetbythedebt’srisk-relatedcosts.Thetargetcapitalstructureisthemixofdebt,preferredstock,andcommonequitywithwhichthefirmintendstoraisecapital.14-18Copyright©2001byHarcourt,Inc.Allrightsreserved.Describethesequenceofeventsinarecapitalization.CampusDeliannouncestherecapitalization.Newdebtisissued.Proceedsareusedtorepurchasestock.DebtissuedPricepershareSharesbought=.14-19Copyright©2001byHarcourt,Inc.Allrightsreserved.AmountD/AD/EBondborrowedratioratioratingkdCostofdebtatdifferentdebtlevelsafterrecapitalization$000----2500.1250.1429AA8%5000.2500.3333A9%7500.3750.6000BBB11.5%1,0000.5001.0000BB14%14-20Copyright©2001byHarcourt,Inc.Allrightsreserved.Whydoesthebondratingandcostofdebtdependupontheamountborrowed?Asthefirmborrowsmoremoney,thefirmincreasesitsriskcausingthefirm’sbondratingtodecrease,anditscostofdebttoincrease.14-21Copyright©2001byHarcourt,Inc.Allrightsreserved.WhatwouldtheearningspersharebeifCampusDelirecapitalizedandusedtheseamountsofdebt:$0,$250,000,$500,000,$750,000?AssumeEBIT=$400,000,T=40%,andsharescanberepurchasedatP0=$25.D=0:EPS0===$3.00.(EBIT–kdD)(1–T)Sharesoutstanding($400,000)(0.6)80,00014-22Copyright©2001byHarcourt,Inc.Allrightsreserved.D=$250,kd=