财务管理(英文第十三版)Ch 4_sheena

FundamentalsofFinancialManagement/12thEdition1Chapter4TheValuationofLong-TermSecuritiesFundamentalsofFinancialManagement/12thEdition2LearningObjectives•Distinguishamongthevarioustermsusedtoexpressvalue,includingliquidationvalue,going-concernvalue,bookvalue,marketvalue,andintrinsicvalue.•Valuebonds,preferredstocks,andcommonstocks.•Calculatetheratesofreturn(oryields)ofdifferenttypesoflong-termsecurities.•Listandexplainanumberofobservationsregardingthebehaviorofbondprices.FundamentalsofFinancialManagement/12thEdition3ConceptsofValueGoing-concernvaluerepresentstheamountafirmcouldbesoldforasacontinuingoperatingbusiness.Liquidationvaluerepresentstheamountofmoneythatcouldberealizedifanassetorgroupofassetsissoldseparatelyfromitsoperatingorganization.FundamentalsofFinancialManagement/12thEdition4ConceptsofValue(2)afirm:totalassetsminusliabilitiesandpreferredstockaslistedonthebalancesheet.Bookvaluerepresentseither(1)anasset:theaccountingvalueofanasset--theasset’scostminusitsaccumulateddepreciation;FundamentalsofFinancialManagement/12thEdition5ConceptsofValueIntrinsicvaluerepresentsthepriceasecurity“oughttohave”basedonallfactorsbearingonvaluation.Marketvaluerepresentsthemarketpriceatwhichanassettrades.•Ingeneral,theintrinsicvalueofanasset=thepresentvalueofthestreamofexpectedcashflowsdiscountedatanappropriaterequiredrateofreturn.FundamentalsofFinancialManagement/12thEdition7BondValuationImportantTermsTypesofBondsValuationofBondsHandlingSemiannualCompoundingFundamentalsofFinancialManagement/12thEdition8Definition:Abondisalong-termdebtinstrumentissuedbyacorporationorgovernment.DebtorsCreditorsImportantBondTermsFundamentalsofFinancialManagement/12thEdition9TheFacevalueofabond:isthestatedvalue.InthecaseofaU.S.bond,thefacevalueisusually$1,000.TheMaturityofabond:isthetimewhenthecompanyisobligatedtopaythebondholderthefacevalueofthebond.ImportantBondTermsFundamentalsofFinancialManagement/12thEdition10Thecoupons(couponpayments)arethestatedinterestpaymentmadeonbond.Thebond’scouponrateisthestatedrateofinterest;theannualinterestpaymentdividedbythebond’sfacevalue.ImportantBondTermsImportantBondTermsFundamentalsofFinancialManagement/12thEdition11Thediscountrate(requiredrateofreturn)isdependentontheriskofthebondandiscomposedoftherisk-freerateplusapremiumforrisk.QuickQuiz•Theprincipalamountofabondthatisrepaidattheendoftermiscalled:A.discountamount.B.facevalue.C.back-endamount.D.coupon.E.couponrate.FundamentalsofFinancialManagement/12thEdition13Aperpetualbondisabondthatnevermatures.Ithasaninfinitelife.CashFlow:OnlythefixedannualinterestpaymentofIforever.TypesofBondsFundamentalsofFinancialManagement/12thEdition14Aperpetualbondisabondthatnevermatures.Ithasaninfinitelife.(1+kd)1(1+kd)2(1+kd)V=++...+III=St=1(1+kd)tIorI(PVIFAkd,)V=I/kd[ReducedForm]PerpetualBondFundamentalsofFinancialManagement/12thEdition15BondPhasa$1,000facevalueandprovidesan8%couponrate.Theappropriatediscountrateis10%.Whatisthevalueoftheperpetualbond?I=$1,000(8%)=$80.kd=10%.V=I/kd[ReducedForm]=$80/10%=$800.PerpetualBondExampleFundamentalsofFinancialManagement/12thEdition16Anon-zerocoupon-payingbondisabondhasafinitematurityandthebondholderreceiveinterestpaymentandfacevalueatmaturityCashFlow:notonlythefixedannualinterestpayment,butalsothefacevalueatmaturity.TypesofBondsFundamentalsofFinancialManagement/12thEdition17Anon-zerocoupon-payingbondisabondhasafinitematurityandthebondholderreceiveinterestpaymentandfacevalueatmaturity(1+kd)1(1+kd)2(1+kd)nV=++...+II+MVI=Snt=1(1+kd)tIV=I(PVIFAkd,n)+MV(PVIFkd,n)(1+kd)n+MVCouponBondFundamentalsofFinancialManagement/12thEdition18BondChasa$1,000facevalueandprovidesan8%annualcouponfor30years.Theappropriatediscountrateis10%.Whatisthevalueofthecouponbond?V=$80(PVIFA10%,30)+$1,000(PVIF10%,30)=$80(9.427)+$1,000(.057)[TableIV][TableII]=$754.16+$57=$811.16.CouponBondExampleFundamentalsofFinancialManagement/12thEdition19BondChasa$1,000facevalueandprovidesan10%annualcouponfor30years.Theappropriatediscountrateis10%.Whatisthevalueofthecouponbond?V=$100(PVIFA10%,30)+$1,000(PVIF10%,30)=$100(9.427)+$1,000(.057)[TableIV][TableII]=$942.7+$57=$1000CouponBondExampleFundamentalsofFinancialManagement/12thEdition20BondChasa$1,000facevalueandprovidesan12%annualcouponfor30years.Theappropriatediscountrateis10%.Whatisthevalueofthecouponbond?V=$120(PVIFA10%,30)+$1,000(PVIF10%,30)=$120(9.427)+$1,000(.057)[TableIV][TableII]=$1131.24+$57=$1188.24CouponBondExampleBondPrices:RelationshipBetweenCouponandYield•YTM=kd•IfYTM=couponrate,thenparvalue=bondprice•IfYTMcouponrate,thenparvaluebondprice–Pricebelowparvalue,calledadiscountbond•IfYTMcouponrate,thenparvaluebondprice–Priceaboveparvalue,calledapremiumbondFundamentalsofFinancialManagement/12thEdition21FundamentalsofFinancialManagement/12thEdition22Azero-couponbondisabondthatpaysnointerestbutsellsatadeepdiscountfromitsfacevalue;itprovidescompensationtoinvestorsintheformofpriceappreciation.CashFlow:onlythefacevaluereceivedatmaturity.TypesofBondsFundamentalsofFinancialManagement/12thEdition23Azero-couponbon