财务管理第十六章课件

Chapter16FinancialLeverageandCapitalStructurePolicyMcGraw-Hill/IrwinCopyright©2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.KeyConceptsandSkills•Understandtheeffectoffinancialleverageoncashflowsandthecostofequity•Understandtheimpactoftaxesandbankruptcyoncapitalstructurechoice•Understandthebasiccomponentsofthebankruptcyprocess16-2ChapterOutline•TheCapitalStructureQuestion•TheEffectofFinancialLeverage•CapitalStructureandtheCostofEquityCapital•M&MPropositionsIandIIwithCorporateTaxes•BankruptcyCosts•OptimalCapitalStructure•ThePieAgain•ThePecking-OrderTheory•ObservedCapitalStructures•AQuickLookattheBankruptcyProcess16-3CapitalRestructuring•Wearegoingtolookathowchangesincapitalstructureaffectthevalueofthefirm,allelseequal•Capitalrestructuringinvolveschangingtheamountofleverageafirmhaswithoutchangingthefirm’sassets•Thefirmcanincreaseleveragebyissuingdebtandrepurchasingoutstandingshares•Thefirmcandecreaseleveragebyissuingnewsharesandretiringoutstandingdebt16-4ChoosingaCapitalStructure•Whatistheprimarygoaloffinancialmanagers?Maximizestockholderwealth•Wewanttochoosethecapitalstructurethatwillmaximizestockholderwealth•WecanmaximizestockholderwealthbymaximizingthevalueofthefirmorminimizingtheWACC16-5TheEffectofLeverage•HowdoesleverageaffecttheEPSandROEofafirm?•Whenweincreasetheamountofdebtfinancing,weincreasethefixedinterestexpense•Ifwehaveareallygoodyear,thenwepayourfixedcostandwehavemoreleftoverforourstockholders•Ifwehaveareallybadyear,westillhavetopayourfixedcostsandwehavelessleftoverforourstockholders•LeverageamplifiesthevariationinbothEPSandROE16-6Example:FinancialLeverage,EPSandROE–PartI•Wewillignoretheeffectoftaxesatthisstage•WhathappenstoEPSandROEwhenweissuedebtandbuybacksharesofstock?16-7Example:FinancialLeverage,EPSandROE–PartII•VariabilityinROECurrent:ROErangesfrom6%to20%Proposed:ROErangesfrom2%to30%•VariabilityinEPSCurrent:EPSrangesfrom$.60to$2.00Proposed:EPSrangesfrom$.20to$3.00•ThevariabilityinbothROEandEPSincreaseswhenfinancialleverageisincreased16-8Break-EvenEBIT•FindEBITwhereEPSisthesameunderboththecurrentandproposedcapitalstructures•IfweexpectEBITtobegreaterthanthebreak-evenpoint,thenleveragemaybebeneficialtoourstockholders•IfweexpectEBITtobelessthanthebreak-evenpoint,thenleverageisdetrimentaltoourstockholders16-9Example:Break-EvenEBIT$1.00500,000500,000EPS$500,000EBIT500,0002EBITEBIT250,000EBIT250,000500,000EBIT250,000250,000EBIT500,000EBIT16-10Example:HomemadeLeverageandROE•CurrentCapitalStructure•Investorborrows$500anduses$500ofherowntobuy100sharesofstock•Payoffs:Recession:100(0.60)-.1(500)=$10Expected:100(1.30)-.1(500)=$80Expansion:100(2.00)-.1(500)=$150•Mirrorsthepayoffsfrompurchasing50sharesofthefirmundertheproposedcapitalstructure•ProposedCapitalStructure•Investorbuys$250worthofstock(25shares)and$250worthofbondspaying10%.•Payoffs:Recession:25(.20)+.1(250)=$30Expected:25(1.60)+.1(250)=$65Expansion:25(3.00)+.1(250)=$100•Mirrorsthepayoffsfrompurchasing50sharesunderthecurrentcapitalstructure16-11CapitalStructureTheory•ModiglianiandMiller(M&M)TheoryofCapitalStructurePropositionI–firmvaluePropositionII–WACC•Thevalueofthefirmisdeterminedbythecashflowstothefirmandtheriskoftheassets•ChangingfirmvalueChangetheriskofthecashflowsChangethecashflows16-12CapitalStructureTheoryUnderThreeSpecialCases•CaseI–AssumptionsNocorporateorpersonaltaxesNobankruptcycosts•CaseII–AssumptionsCorporatetaxes,butnopersonaltaxesNobankruptcycosts•CaseIII–AssumptionsCorporatetaxes,butnopersonaltaxesBankruptcycosts16-13CaseI–PropositionsIandII•PropositionIThevalueofthefirmisNOTaffectedbychangesinthecapitalstructureThecashflowsofthefirmdonotchange;therefore,valuedoesn’tchange•PropositionIITheWACCofthefirmisNOTaffectedbycapitalstructure16-14CaseI-Equations•WACC=RA=(E/V)RE+(D/V)RD•RE=RA+(RA–RD)(D/E)RAisthe“cost”ofthefirm’sbusinessrisk,i.e.,theriskofthefirm’sassets(RA–RD)(D/E)isthe“cost”ofthefirm’sfinancialrisk,i.e.,theadditionalreturnrequiredbystockholderstocompensatefortheriskofleverage16-15Figure16.316-16Example:CaseI•DataRequiredreturnonassets=16%;costofdebt=10%;percentofdebt=45%•Whatisthecostofequity?RE=16+(16-10)(.45/.55)=20.91%•Supposeinsteadthatthecostofequityis25%,whatisthedebt-to-equityratio?25=16+(16-10)(D/E)D/E=(25-16)/(16-10)=1.5•Basedonthisinformation,whatisthepercentofequityinthefirm?E/V=1/2.5=40%16-17TheCAPM,theSMLandPropositionII•Howdoesfinancialleverageaffectsystematicrisk?•CAPM:RA=Rf+A(RM–Rf)WhereAisthefirm’sassetbetaandmeasuresthesystematicriskofthefirm’sassets•PropositionIIReplaceRAwiththeCAPMandassumethatthedebtisriskless(RD=Rf)RE=Rf+A(1+D/E)(RM–Rf)16-18BusinessRiskandFinancialRisk•RE=Rf+A(1+D/E)(RM–Rf)•CAPM:RE=Rf+E(RM–Rf)E=A(1+D/E)•Therefore,thesystematicriskofthestockdependson:Systematicriskoftheassets,A(Businessrisk)Levelofleverage,D/E(Financialrisk)16-19CaseII–CashFlow•Interestistaxdeductible•Therefore,whenafirmaddsdebt,itreducestaxes,allelseequal•Thereductionintaxesincreasesthecashflowofthefirm•Howshouldanincreaseincashflowsaffectthevalueoft